On Cyprus the tax difference is a choice between VAT, with a reduced 5% rate for a main home, and transfer fees on a resale. The bigger difference is how long it can take to get a title deed.
Cyprus treats the two routes in a very different way, both in tax and in paperwork. A new build comes with VAT and, often, a long wait for a registered title deed. A resale comes with transfer fees but, in most cases, a title deed that already exists. Which is better depends on what you value, and on the details below.
Tax: VAT on new builds, transfer fees on resale
A new property bought from a VAT-registered developer carries VAT at the standard 19% rate. A reduced 5% rate can apply to a main residence: reported conditions are the first 130 square metres and the first €350,000 of value, provided the total area stays within 190 square metres and the total transaction value within €475,000. The home must actually be your main and permanent residence, and if you sell it or stop living there within ten years the difference between 5% and 19% is repaid pro rata for the years that remain. Earlier, broader terms are reported for buildings whose planning permits were applied for by 31 October 2023, so ask the developer which regime your unit falls under and have your lawyer confirm it with the Tax Department.
A resale is generally exempt from VAT. Instead the buyer pays transfer fees on a banded scale of 3% up to €85,000, 5% from €85,000 to €170,000 and 8% above that, with a 50% reduction that has applied since 2016. Where VAT is charged, transfer fees are not payable on the same transaction. Stamp duty was reported abolished from 1 January 2026 under Law 239(I)/2025, so check that against current guidance before you budget.
The title-deed gap on a new build
With an off-plan or new unit you often buy an obligation by the developer to build and transfer, and your sales contract deposited at the Land Registry stands in for a title deed. The contract should be deposited within six months, which gives priority over later claims and fixes the transfer fee base at the contract date. The separate title deed for your unit can arrive years after you take possession, because it depends on administrative and technical procedures, and on whether the developer's own mortgage over the land has been released. Cyprus legal sources report that in 2026 a mix of construction delays, financing gaps and the registration backlog still leaves some buyers waiting. Reforms exist to help buyers who have paid in full obtain a title deed despite a developer's outstanding mortgage, and from 13 February 2026 the Department of Lands and Surveys has been able to fine banks that fail to release a mortgage after receiving full payment, with fines reported between €5,000 and €100,000.
Check before you pay:
- the planning and building permits and the approved plans match what you are buying
- the contract of sale will be deposited at the Land Registry, and who does it
- whether the land carries a developer's mortgage and how your unit is released
- the completion date, the penalty for delay and the sellers' obligations on the title deed
- the developer's track record on delivering title deeds on earlier projects
Resale: faster and more transparent
A resale involves an existing title deed changing hands, and the transfer is generally completed within roughly five months from the contract. You can inspect the home as it is, in a neighbourhood you can judge. The risks are different: legal problems with the title or encumbrances, unpermitted extensions, and ageing systems. Ask your lawyer for a title search and for planning compliance, and read our Cyprus resale checklist.
Residency and rental considerations
Cyprus permanent residency by investment under Regulation 6(2) is reported to be tied to a new property of at least €300,000 plus VAT, so a resale may not qualify, and you should confirm with a lawyer before you choose. See our Cyprus golden visa article. If you plan to let short term, check our Cyprus short-term rental rules, since registration is mandatory.
A simple way to decide
- choose a new build if the reduced 5% VAT applies to you, you accept a wait, and the developer has a strong record of delivering title deeds
- choose a resale when a registered title deed on completion matters most to you, or you want to let or sell soon
- compare the full cost, including VAT or transfer fees, legal costs and any title-deed risk, not only the asking price
FAQ
What VAT applies to a new build? 19% by default, with a reduced 5% for a qualifying main residence within the area and value limits, repayable in part if you sell or stop living there within ten years. Do I pay transfer fees on a new build? Not where VAT is charged on the same transaction. What are transfer fees on a resale? 3%, 5% and 8% in bands, with a 50% reduction reported as permanent. Can a new build take years to get a title deed? Yes, it is a known problem. Does stamp duty still apply? It was reported abolished from 1 January 2026, so confirm.
How we help
D.H. Realting can help you compare specific options and ask developers and sellers the right questions. This article is general information, not legal, tax or investment advice. Tax rates and rules change, so confirm current figures with your lawyer and the Tax Department before you commit.