An Apartment for €300,000 in Cyprus: What Does It Really Cost?

26.06.2026

When buyers see a price tag of €300,000, they often assume this is the total amount they will need to budget for the purchase. In practice, however, it is only the starting point. Below, we outline the additional costs that typically form part of the overall acquisition budget.

 

1. VAT - Potentially the Largest Additional Expense

For newly built properties, Value Added Tax (VAT) is generally charged at a rate of 19%. However, where the purchaser acquires the property as their primary and permanent residence and satisfies certain statutory conditions, a reduced VAT rate of 5% may apply to the first 130 sq. m of the property, provided that the total area does not exceed 190 sq. m and the value of the property does not exceed €475,000.

VAT does not apply to resale properties. Instead, the purchaser is required to pay transfer fees (see below). For a property valued at €300,000, the difference between the 5% and 19% VAT rates amounts to €42,000. Accordingly, the applicable VAT treatment should be assessed well before the sale and purchase agreement is executed.

2. Transfer Fees - Applicable to Resale Properties Only

Where VAT is not charged on the transaction (as is generally the case for resale properties), the purchaser must pay transfer fees for the registration of title in their name with the Cyprus Land Registry.

The fees are calculated on a progressive basis:

• 3% on the first €85,000;
• 5% on the amount between €85,001 and €170,000; and
• 8% on the amount exceeding €170,000.

A 50% reduction currently applies to the entire transfer fee payable in respect of resale properties. For a property valued at €300,000, the transfer fee amounts to approximately €8,600 after applying the reduction.

3. Stamp Duty - No Longer Applicable

As of 1 January 2026, stamp duty on agreements for the sale and purchase of immovable property in Cyprus has been abolished.
Previously, stamp duty was payable at rates of up to 0.2% of the contract value (subject to a cap of €20,000). These costs no longer apply.

4. Council of Ministers' Permit

Nationals of countries outside the European Union, including citizens of Belarus and Russia, are required to obtain a permit from the Council of Ministers of Cyprus in order to acquire immovable property in Cyprus.

This is a standard administrative procedure which, in practice, is largely formal and is almost invariably approved. Nevertheless, the process may take several months and entails additional costs. The costs associated with obtaining the permit generally range from €500 to €800.

5. Legal Fees

Legal due diligence and transaction support are no longer optional but an essential part of any real estate acquisition.
Legal fees generally range from 1% to 2% of the property value. For a property valued at €300,000, legal costs would typically amount to between €3,000 and €6,000.

It is important to note that these figures relate to the fees of an independent lawyer acting on behalf of the purchaser. The developer's lawyer represents the interests of the developer and does not act for the buyer.

6. Technical Survey

A technical inspection is particularly advisable when acquiring a resale property. The cost of an inspection carried out by a qualified surveyor, architect or civil engineer generally ranges from €200 to €500. Although modest in comparison with the overall transaction value, such an inspection may prevent substantially higher costs arising from undiscovered structural defects or other hidden issues.

7. Mortgage-Related Costs

Where the acquisition is financed through a mortgage, additional costs should be taken into account. Banks generally charge an arrangement fee of approximately 1% of the loan amount, together with administrative and documentation expenses ranging from €150 to €500, depending on the lender and the services involved.

Insurance costs should also be factored into the budget. Property insurance typically costs approximately €350 per year, while life insurance for the borrower generally starts from €800 per year. As a rule, lenders require both forms of insurance as a condition of financing.

What Is the Real Budget?

As a general rule, additional acquisition costs associated with purchasing real estate in Cyprus range between 15% and 25% of the property value, depending on whether the property is a new build or a resale property, whether mortgage financing is involved, and whether the reduced VAT rate applies.

For a property priced at €300,000, this translates into a realistic overall budget of approximately €330,800 to €376,950, excluding furnishing, relocation and other post-acquisition expenses.