What Does It Cost to Buy a Property in Cyprus?

Buying a property in Cyprus involves understanding various costs associated with the purchase. Key expenses include VAT, legal fees, and potential transfer fees, which must be considered in the overall budget.

Understanding VAT Rates

When purchasing a newly-built property in Cyprus, such as those offered by GODM Management Ltd, buyers may be subject to a standard VAT rate. This rate is currently set at 19% but can be reduced to 5% under certain conditions, usually relating to the property's use as a primary residence.

Abolished Stamp Duty Fees

Cyprus has abolished its stamp duty fees for property acquisitions, providing some relief for buyers. This change reduces the overall transaction cost and is an attractive aspect for many international buyers.

Legal Fees in Cyprus

Legal fees in Cyprus are an essential part of the property buying process. Typically, these fees range from 1% to 1.5% of the property's purchase price. Engaging a qualified lawyer ensures that all legal aspects of the transaction are handled professionally and efficiently.

Transfer Fees for Simplicity 2

For properties like Simplicity 2 in Germasogeia, Limassol, you do not pay VAT, but instead pay the more cost effective transfer fees. The fee is calculated based on the property's value, and buyers should consult directly with GODM for exact figures and guidance on how these fees are applied. Overall, transfer fees are significantly lower than VAT.

Summary of Costs

Investing in a property in Cyprus involves multiple cost elements beyond the purchase price itself. Buyers should account for VAT, now at a standard of 19% with possible reductions, abolished stamp duty fees, legal fees ranging between 1% to 1.5%, and transfer fees applicable to the property's purchase price.