Real estate agent commission in Cyprus

In Cyprus the law does set a commission rate, but only as a fallback: if agent and client never agreed a fee, the agent is owed 3%. In practice fees are negotiated, usually between 3% and 5% plus VAT. What the law is strict about is who may be paid at all. Only a registered agent with a valid licence can enforce a fee, and only licensed agents may take commission from clients. Here is how it works in October 2026, and what is left after tax for an agent or an assistant.

The short version

1. INDEX.cy put the usual fee at 3% to 5% of the price in August 2026, normally paid by the seller.
2. 19% VAT is added on top. A 3% fee costs the seller 3.57% of the price.
3. Where no fee was agreed, Law 71(I)/2010 sets it at 3% of the transaction value, payable on completion.
4. If the deal fails through no fault of the agent, the agent can still claim reasonable pay for time and costs.
5. Any agency agreement with someone who is not registered or not licensed is invalid, so the fee cannot be enforced.
6. The seller’s transfer declaration names the agent and the fee, and the agent pays 2/10,000 of the declared value to the Council within 30 days.
7. Only licensed agents may take commission from clients. Assistants are paid by their employer.
8. From 2026, income up to €22,000 a year is free of income tax, and social insurance is 8.8% for employees and 16.6% for the self-employed.

Usual rates

INDEX.cy reported in August 2026 that agents usually charge 3% to 5% of the price plus 19% VAT, and that the seller normally pays. There is no official table, and the rate is negotiable. Agree the rate, the VAT and the trigger in writing.

What the law says

The Real Estate Agents Law 71(I)/2010 sets out the rules on pay:

• Article 20: the default fee. If no fee was agreed, the agent’s commission is 3% of the value of the transaction, payable when it is completed. If the deal is not completed through no fault of the agent, the agent can claim reasonable pay for the time spent and costs incurred.
• Article 27: no licence, no fee. An agency agreement, written or oral, with a person who is not registered or has no valid licence is invalid. A broker working without a licence cannot sue for a fee, and also commits an offence punishable by up to 12 months in prison, a fine of up to €3,500, or both.
• Disclosure. Agents must disclose in writing any interest of their own in the property, and tell buyers everything they know about its condition, charges and legal or planning restrictions.

Because the 3% default only applies when nothing was agreed, a short written agreement protects both sides: it fixes the rate, the VAT, who pays, when the fee is due and whether the mandate is exclusive.

The transfer declaration and the Council levy

At the Land Registry, the seller’s transfer declaration must name the agent and the fee paid. The agent then pays 2/10,000 of the declared value to the Council within 30 days. That makes the fee visible, so it must match your invoice.

A bill to watch

A bill by MP Kostis Efstathiou to make lawyers draft every property sale contract was back before the House legal affairs committee in May 2025, after being returned once by the previous president. The Council called for it to be withdrawn (Cyprus Mail, May 2025). Check its status before you advise clients on who prepares the contract.

Who pays

• Sale: usually the seller (INDEX.cy).
• New build: the developer is the seller, so an agent bringing a buyer is paid by the developer. A developer selling what it built does not itself need an agent’s licence.
• Rental: the law covers leases of more than one month, so letting work is agency work. Agree the fee and who pays it in writing.

Agents, assistants and splits

Between agencies. No law sets how two licensed agents share a fee. Put the split, the payment date and who invoices whom in writing before you show the property. Both must be registered and licensed for the agreement to stand.

Between the agent and an assistant. In March 2025 the Labour Ministry confirmed that assistants may be paid commission by their employer if their contract says so, and may work part time, while only licensed agents may receive commission from clients (Cyprus Mail). An assistant should never invoice a client or take cash from one. One RE/MAX Cyprus advert for experienced assistants in Limassol and Nicosia, undated and expired when checked in October 2026, offered a fixed €1,500 a month plus commission. Treat that as one example, not a market rate.

Worked examples

These use example rates only. Your agreement with the client and your employment contract decide.

Resale apartment in Limassol, €400,000, seller pays 3% plus VAT. Fee: 400,000 x 3% = €12,000. VAT: 12,000 x 19% = €2,280. The seller pays €14,280. Council levy paid by the agent: 400,000 x 2/10,000 = €80.

Villa in Paphos, €1,200,000, seller pays 4% plus VAT, shared 50/50 with another licensed agent. Fee: €48,000 plus €9,120 VAT. Each agent receives €24,000 before VAT. Council levy on the declared value: €240.

Flat in Nicosia, €200,000, no fee ever agreed. The law’s default applies: 200,000 x 3% = €6,000, payable on completion. This is the reason to agree in writing: you cannot argue for 4% afterwards.

Sale that collapses because the buyer’s permit is refused, after months of work. No completion, so no commission. Under Article 20 the agent can claim reasonable pay for time and costs, provided the failure was not the agent’s fault.

Tax and social insurance

Income tax. PwC Cyprus lists the personal income tax bands after the 2026 reform:

Yearly taxable income	Rate
Up to €22,000	0%
€22,001 to €32,000	20%
€32,001 to €42,000	25%
€42,001 to €72,000	30%
Above €72,000	35%

Social insurance. Andersen Cyprus gave the 2026 rates in January 2026: 8.8% for employees and 8.8% for employers, and 16.6% for the self-employed, on earnings up to €68,904 a year.

VAT on the fee. Agents charge 19% VAT on their fees. Ask an accountant when you must register.

Sources: PwC Cyprus (January 2026) and Andersen Cyprus (January 2026).

Example: an assistant on salary plus commission. Salary €1,500 x 12 = €18,000, plus €6,000 commission from the employer: €24,000. Income tax: (24,000 - 22,000) x 20% = €400. Social insurance at 8.8%: €2,112. Your employer pays another 8.8% on top.

Example: a licensed agent working alone with €60,000 taxable profit. Income tax: 10,000 x 20% + 10,000 x 25% + 18,000 x 30% = €9,900. Social insurance at 16.6% would be about €9,960 if your insurable income equalled your profit, but the base for the self-employed follows its own rules. Ask an accountant before your first year closes.

Practical points at completion

• Agents are obliged entities under AML Law 188(I)/2007. Identify and verify every client and beneficial owner, check source of funds for higher-risk clients, and report suspicions to MOKAS (Kourtellos & Co, October 2026). Take the fee by bank transfer against an invoice, never in cash.
• Make sure the transfer declaration shows your name and the fee you invoiced, and pay the Council levy within 30 days.
• On off-plan deals, check that the seller’s bank has signed a release for the unit (Koufettas Law, October 2026), so the sale can actually complete.
• Keep your licence renewed by 31 December. A fee earned on an expired licence cannot be enforced.

What to check before you work a deal

• Your registration and licence are valid, and the numbers appear on the advert.
• A written agreement with the rate, VAT, who pays, the trigger and any exclusivity.
• A written split agreement with any other licensed agent.
• If you are an assistant, an employment contract that sets your commission from the employer.
• Your AML file for the client is complete.

Commission in Cyprus is negotiated, with a 3% fallback in the law, and only licensed agents may be paid by clients. This guide was checked on the date shown above and covers only the areas under the effective control of the Republic of Cyprus. It is general information, not legal or tax advice. CloserPass is not affiliated with the Estate Agents Registration Council, any agency or any government body in Cyprus.

Find roles and more guides on Cyprus on CloserPass.