---
title: "Module 3: Taxes, Fees & Holding Costs | Investing in Cyprus Real Estate"
description: "Total cost of ownership: upfront fees, annual taxes and rental-income tax."
lang: ur
json-ld:
---

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Module 3 of 6 Investing in Cyprus Real Estate  3 min read 

# Module 3: Taxes, Fees & Holding Costs

Total cost of ownership: upfront fees, annual taxes and rental-income tax.

Course progress 0/6 modules 

## Upfront transaction costs

Transfer fees 1.5–4% (50% discount on new builds with VAT), VAT 19% (reduced 5% for primary residence under conditions), stamp duty 0.15–0.20%.

### Ongoing taxes

No inheritance tax; rental income is taxed via personal income tax with a 20% exemption on gross.

### Holding costs

-   Community / HOA fees
-   Utilities and maintenance reserves
-   Property management (8–20% of rental income)
-   Insurance

### Build your true-cost model

The right way to evaluate a deal is net yield after all costs, not gross yield. Compare any two properties on a like-for-like basis.

### Key takeaways

-   Always quote yield on a NET basis. 
-   Budget 8–12% on top of the price for transaction costs. 
-   Annual property and rental-income taxes vary widely — model them. 
-   Property management eats 8–20% of gross rent. 
-   Insurance and maintenance reserves are not optional. 

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Previous

Module 2: Legal Framework & Foreign Ownership

](/ur/courses/cyprus/legal-ownership)[

Next

Module 4: Financing & Currency Strategy

](/ur/courses/cyprus/financing-and-currency)

Modules

1.  [01 Market Overview ](/ur/courses/cyprus/market-overview)
2.  [02 Legal Framework & Foreign Ownership ](/ur/courses/cyprus/legal-ownership)
3.  [03 Taxes, Fees & Holding Costs ](/ur/courses/cyprus/taxes-and-costs)
4.  [04 Financing & Currency Strategy ](/ur/courses/cyprus/financing-and-currency)
5.  [05 The Buying Process Step-by-Step ](/ur/courses/cyprus/buying-process)
6.  [06 Rental Yield, Exit & Common Mistakes ](/ur/courses/cyprus/rental-yield-exit)