Cyprus Stamp Duty Abolished in 2026: A Key Change for Property Buyers

From 1 January 2026, Cyprus has officially abolished stamp duty on property sale contracts. This reform simplifies the property buying process by removing one administrative step and one mandatory cost at the contract stage.

For buyers and investors, this marks a clear improvement in transaction efficiency and overall market accessibility.

What Was Stamp Duty in Cyprus?

Stamp duty was a documentary tax applied during the contract-signing stage of a property transaction.

It was required to:

Validate property sale agreements
Complete legal formalities
Proceed with contract registration

Although relatively small compared to other costs, it added:

An extra administrative step
Additional documentation requirements

What Changed in 2026?

As of 1 January 2026, stamp duty has been abolished in Cyprus.

What this means:

Property contracts are no longer subject to stamp duty
The stamping process is eliminated
One cost is removed from the transaction

This results in a simpler and more streamlined contract process.

The Execution Date Rule (Critical for Buyers)

The key factor is the execution date of the contract.

Contracts signed from 1 January 2026:

No stamp duty applies

Contracts signed before 31 December 2025:

May still fall under previous stamp duty rules

For buyers negotiating near year-end, timing becomes essential to benefit from this change.

What This Means for Property Buyers

Lower upfront friction

Fewer formalities simplify the contract stage.

Clearer financial planning

Removing one cost improves budgeting transparency.

Easier international transactions

Particularly beneficial for foreign buyers managing remote contract execution.

👉 Investors entering the market often start with a complete guide to buying property in Cyprus to understand the full process.

What Costs Still Apply?

While stamp duty is removed, key financial and legal components remain:

VAT (for new properties)

Depends on property type and buyer eligibility
Requires early planning

Transfer Fees (for resale properties)

Separate from VAT
Depends on transaction structure

Legal Due Diligence

Contract review
Title deed verification
Property checks

These remain the main factors shaping the total cost and risk of a property purchase.

Who Benefits the Most?

International buyers

Simplified documentation reduces friction in cross-border transactions.

Corporate investors

Less complexity in multi-party and structured deals.

Buyers combining investment and relocation

Supports broader strategies such as relocation or residency planning.

Impact on the Cyprus Property Market

The abolition of stamp duty strengthens Cyprus’s position as a more investor-friendly real estate market.

It contributes to:

Faster transactions
Improved buying experience
Increased investor confidence

Combined with economic stability and growing demand, this supports long-term property value and investment potential.

2026 Buyer Checklist

Before purchasing property in Cyprus:

Confirm contract execution timing
Review total acquisition costs (VAT, transfer fees, legal)
Align signing process with all parties
Conduct full legal due diligence
Maintain clear documentation for future resale

The By The Sky Perspective

At By The Sky, we closely follow regulatory updates to ensure our clients invest with clarity and confidence.

We develop:

Projects in strategic locations across Larnaca
Properties aligned with long-term market demand
Opportunities designed for both lifestyle and investment

Our focus is on simplifying the investment journey while maintaining strong fundamentals.

Sources

This analysis is based on information reported regarding Cyprus stamp duty abolition and its impact on property buyers, as published by IBCCS TAX.

Source: IBCCS TAX