Methodology and sources

This page documents every rate, band, and threshold our calculators apply, what each is used for, and where it comes from. It exists so that you never have to take a number on this site on trust — you can check it against the source.

The figures below are read directly from the calculation engine at build time. They are not transcribed by hand, so what this page shows and what the calculators apply cannot diverge.

Our principles

• Official sources first. Rates and thresholds come from Cyprus government departments, legislation, and the European Central Bank. Professional summaries from accounting and law firms are used only to corroborate our reading of a statute, never as the sole basis for a figure.
• Show the arithmetic. Where a rule is banded or capped, we show the bands and the caps rather than only the result, so you can follow how a figure was produced.
• Compute the examples. Worked examples in our guides are generated with the same engine that powers the calculators, not typed in separately.
• Do not model the unknowable. Where a rule depends on facts a calculator has no way to verify, we explain it in the copy and decline to compute it. Those cases are listed below.
• State the limits. Every result is an estimate for planning. We say so, and we say what it excludes.

Property transfer fees

Charged by the Department of Lands and Surveys on the assessable value, in progressive bands. Each band applies only to the portion of value falling within it.

• 3% on the first €85,000
• 5% from €85,000 to €170,000
• 8% above €170,000
• A 50% reduction applied to transfers that do not attract VAT (in practice, resale purchases)

For joint buyers we calculate the fee as if each owner acquired half the assessable value, then add the two results — which is how the Land Registry applies the progressive bands to co-owners. We assess fees on the Land Registry value you enter, defaulting to the purchase price when you have no separate valuation.

VAT on new-build property

The calculators offer four scenarios. Which applies to a given property is a question of law and fact that we cannot determine for you.

• Resale / no VAT. No VAT; transfer fees estimated instead.
• New build, standard rate. 19% on the full price.
• Reduced rate (current rules). 5% on the value attributable to the first 130 m², capped at €350,000, with the remainder at 19%. Available only where total covered area does not exceed 190 m² and total price does not exceed €475,000. Outside either limit we apply 19% to the whole price, because the relief is a cliff edge rather than a taper — there is no partial relief.
• Transitional scheme (legacy projects). 5% on the value attributable to the first 200 m², with no overall price or area cap, and the remainder at 19%. This regime is available only to specific legacy projects and lapses permanently at the end of 2026.

Where VAT applies, transfer fees are estimated only on any amount by which the Land Registry value exceeds the VAT-inclusive purchase value.

Stamp duty

Our default assumes no stamp duty on contracts signed from 1 January 2026. A legacy mode remains available for historical estimates, applying the previous bands: exempt to €5,000, 0.15% to €170,000, 0.2% above it, capped at €20,000.

Mortgage calculations

Monthly payments use the standard repayment-mortgage formula for a capital-and-interest loan: the loan amount (price minus deposit), the annual rate, and the term produce a fixed monthly payment that clears the balance by the end of the term. Interest-only and part-repayment structures are not modelled.

Where offered, the live European Central Bank base rate is fetched so your starting point is current rather than a guess, and you add your own margin estimate on top. The last known value is used if the rate cannot be fetched, and the calculator says so.

Affordability and stress testing

Debt-to-income is calculated as the estimated monthly payment plus your stated existing monthly debts, divided by net monthly income. We treat up to 30% as comfortable, up to 40% as tight, and above that as too high.

These are our planning thresholds, not any bank's policy. Lenders set their own criteria, which may be stricter or more permissive. The stress test re-runs the same calculation at +1% and +2% interest, which is broadly how a lender checks whether you could still afford the loan if rates rose.

What we deliberately do not model

Some rules depend on facts a calculator cannot know from a price and a floor area. Rather than guess, we explain these in the copy and leave them out of the arithmetic:

• Whether you qualify for the reduced VAT rate. It requires the property to be your primary and permanent residence, an application to the Tax Department, and an ongoing obligation. We compute what the relief would be if you qualify; whether you do is for your adviser.
• The "first occupation" test. From 1 September 2026 this is redefined around systematic use of a building for at least 18 months. It determines whether a property is treated as a new build or a resale, and we have no reliable input for a property's occupation history.
• Whether transitional VAT treatment is available. This turns on planning and building permit dates for the specific project, not on anything you can type into a calculator.
• What the Land Registry will assess a property at. We use the value you enter. The actual assessment is made by the Land Registry and can differ from your contract price.
• What any bank will lend you. We do not publish loan-to-value ratios or lending criteria, because they vary by institution and move over time. We model whatever deposit percentage you enter.
• Market data. We publish no average prices, regional valuations, or yield estimates.

Costs not included in our estimates

The calculators cover deposit, mortgage payment, transfer fees or VAT, stamp duty, and a configurable percentage allowance for other upfront costs. They do not calculate legal fees, valuation fees, survey costs, insurance, bank arrangement fees, furnishing, utility connections, moving costs, ongoing local taxes, service charges, title-specific issues, or any seller-side tax. Our costs checklist sets these out in full.

Review and corrections

Cyprus property taxation is actively legislating: the reduced VAT rules were rewritten in 2023, the transitional window has already been extended once, and further changes take effect during 2026. We re-verify against source when we become aware of a change, and every page shows when it was last reviewed.

If you believe a figure here is wrong or out of date, please write to info@cyprushomesdirect.com with the page, the figure, and ideally a source. Substantive corrections are made promptly.

Limits of these estimates

Everything the calculators produce is an estimate for planning purposes. It is not legal, tax, mortgage, or financial advice, it is not a quotation, and it is not approval from any bank or authority. Actual liabilities are determined by the relevant Cyprus authorities on the facts of your transaction. Confirm your position with a Cyprus lawyer, bank, and tax adviser before committing to a purchase.