Cyprus 2026: what changed for foreign buyers

Foreign buyers account for more than two in every five sale contracts recorded in Cyprus in the first seven months of 2026, as local press reports, so rule changes reach your clients quickly. This briefing lists what changed or is proposed as of 11 October 2026, with the limits of what we could confirm. It is written for agencies and developers.

Stamp duty on contracts

Several law-firm summaries report that stamp duty on sale contracts was abolished from 1 January 2026 under Law 239(I)/2025, so buyers no longer pay it, while Land Registry transfer fees remain. We did not read the law itself; confirm before you quote it to a client.

VAT on new buildings

The headline rates did not change: 19 percent standard, with a reduced 5 percent for qualifying primary-residence purchases. What changed in 2026 is the definitions and conditions that decide which rate applies. Summaries describe stricter definitions of first occupation, an area cap on the first 130 square metres of a primary residence, and new declaration requirements, so some purchases that qualified for 5 percent before may now carry 19 percent.

The sources disagree on dates. A May 2026 article reports that the transitional regime was extended to 31 December 2026 for buildings whose permit was issued after 1 January 2025 or will not be issued by that date, while another summary gives mid-June 2026 and a decree amending the VAT schedules from 1 September 2026. Do not quote a deadline to a client without checking the current text with a tax adviser. For the amounts that apply, see the May 2026 summary on Mondaq.

Capital gains

Summaries of the 2026 tax reform report a higher lifetime exemption for the sale of a primary residence, EUR 150,000, available once per person and subject to conditions including actual use as a main home. This matters for sellers, and for investors who ask about exit.

Proposed limits on non-EU buyers

Four parliamentary proposals were reported as submitted by 2 September 2026. They would restrict non-EU buyers to one house or apartment, allow small commercial units, ban the purchase of forest and agricultural land and property near the ceasefire line and critical infrastructure, and close routes by which foreign-controlled companies buy indirectly (see the Sigmalive report). They would also strengthen checks by lawyers, accountants and estate agents. We found no report that they have passed. Tell non-EU buyers that the rules may change and that the approval process applies today.

Anti-money-laundering supervision

A January 2026 article reports a new supervisory authority for real estate, expected to be fully operational by July 2027 (see the Mondaq article). At EU level, Regulation (EU) 2024/1624 is reported to apply from 10 July 2027 and to treat real estate agents as obliged entities. For an agency this means formal customer checks, a named compliance person and records you can show to a supervisor. Our briefing on serving expat and cross-border buyers covers what to collect.

Short-term rentals

Since 2023, anyone letting property short term to holidaymakers has to register with the Deputy Ministry of Tourism. A press summary gives a fee of EUR 222 for three years, and says the registration number must appear in every listing. The Deputy Ministry is reported to be drafting stronger rules, including certification and inspections. The registry was reported at 8,464 licensed properties on 6 May 2026, and press reports describe many listings without a valid number. At EU level, Regulation (EU) 2024/1028 on short-term rental data is reported to apply from 20 May 2026. If you sell to investors who plan to let, give them the registration steps before they buy.

Residence through property

Law-firm summaries describe two routes for non-EU buyers. The fast track needs a new-build residential property of at least EUR 300,000 plus VAT, bought in a first sale from a developer without a mortgage, with annual income of at least EUR 50,000 plus EUR 15,000 for a spouse and EUR 10,000 per minor child, and decisions in two to four months. The normal track allows resale property or lower values, with a lower income requirement and a longer review of eight to twelve months. Parents and parents-in-law were removed from the programme on 2 May 2023. These figures come from firms that sell the service, so check them against the immigration authority before you quote them.

Questions buyers now ask, and honest answers

• Do I still pay stamp duty on the contract? Reports say no from 1 January 2026; confirm with your lawyer.
• Will I get the 5 percent VAT rate? It depends on the first-occupation and area conditions and on the transitional dates, so ask a tax adviser before you rely on it.
• Can a non-EU buyer buy several properties? Sources differ, and proposals would limit it to one; check the position at the date of signing.
• Does buying give me residence? Only through the investor routes described above, whose figures you should check against the authority.
• Can I let the property short term? Yes, after registering with the Deputy Ministry of Tourism, and the rules may tighten.

What to do with this

• keep a one-page sheet of the rules your sales team quotes, with the date and the source of each
• re-check the VAT conditions on every new-build sale until the dates are clear
• brief non-EU buyers on the Council of Ministers approval and on the pending proposals
• move your customer-check process towards the 2027 standard now

Working with D.H. Realting

D.H. Realting is a trilingual (Russian, English, Polish) overseas-property platform. We introduce buyers, including expats and cross-border buyers, and support the process. Agencies that handle the deal locally and want to be introduced to such buyers can contact us through our partners page.

This briefing is informational only and is not legal, tax or investment advice. Facts were checked on 11 October 2026 from the sources named in the text; rules change, so confirm with a local lawyer before relying on any point.