4 different types of taxes must be paid when buying real estate in Cyprus. The first and most important of these can be expressed as VAT (Value Added Tax). Unless otherwise agreed, this tax is paid by the buyer at a rate of 5%. If the seller is not a professional company that sells for profit, there is no VAT payment when buying second-hand land and housing.
One value tax payment is the title deed transfer fee. Unless otherwise stated, this amount is paid by the buyer at a rate of 6%. If the buyer is a non-profit buyer, he pays a 3% title deed transfer fee at a 50% discount, provided that it happens once in his life. In the real estate purchases to be made afterward, it is liable to pay tax at a rate of 6% over the price specified by the land registry office.
Withholding payment is another tax payment realized in this process. This tax payment is made by the seller. If the seller is a for-profit company, the rate is 4%, and if he is an amateur non-profit seller, he has to pay a tax of 2.8%. Non-profit sellers are exempt from this tax for once in their lifetime.