Property duties and other costs with the purchase of property in Cyprus
A one – off stamp duty is levied on the purchase of property in Cyprus. The rates are dependent on the contractual purchase amounts and payment is due within 30 days of signing the sale agreement. The amount is payable by the purchased to the tax authorities.
|Purchase Price||Stamp Duty %|
|Up to 170.860||0.15%|
The transfer of title can be effected once the Council of Ministers’ permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds.
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:
|Value up to €85.430||3%|
|€85.431 – €170.860||5%|
Transfer fees are charged accumulatively and are payable at the time of title deeds (usually it is 3-5 years after delivery of property).
If the property is purchased jointly by a couple, the property purchase price is split equally into two parts and then taxed.
|Purchase Price||€205.032 / 2 = €102.516|
|1) €85.430 X 3€ =||€2.563 x 2 = €5.126|
|2) €17.086 X 5% =||€854 x 2 = €1.708|
Since Cyprus accession to the EU, VAT must b paid when buying a house. In cases though where and application for a town permit was filed before the 1st of May 2004, VAT will not be charged.
For projects that the town planning application has been filed after the 1st of May 2004, VAT will apply on the sales price. VAT applied will have two rates, 5% for the purchase of residence by permanent residents of Cyprus and 18% for any other purchases. For the purchase of land VAT was applied at the end of the year 2007.
Should the purchaser decide to sell the property at a later date, Cyprus Law allows the full amount paid for it in foreign exchange may be transferred abroad at the time of resale. The equivalent of the full purchase price and any increase in the value of the property may be transferred immediately. Property sales in Cyprus are subject to capital gains tax at the rate of 20% on the gain.
The first €17.080 of gain are tax-exempt. If a couple jointly owns the property, €34.172 of gains are tax-exempt.
When you sell for the first time your private residence of which you were the owner for at lease 5 years, then it is tax-exempt up to €85.430.
Immovable Property Tax
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st of January 1980.
|Up to €170.860||Nil|
|€170.861 - €427.150||0.25%|
|€427.151 - €854.300||0.35%|
|Over € 854.301||0.40%|
There are taxes paid to the Municipality and depend on the size and value of the property. It covers refuse collection, sewerage, street lighting, etc, and it varies according to the area, approximately €150 - €200 per annum per unit per property, depending on the size of the property.
Communal expense covers an owners share towards the cost of cleaning and maintaining a projects communal areas, gardens, swimming pool, management fees and repairs. These are payable at fixed intervals throughout the year and vary from development to development and from property to property.
There is no inheritance tax in Cyprus.
Same as for locals, the contract of sale must be in writing and it is advisable to be registered at the District Land Registry within sixty days from the contract date. This protects the buyer’s rights to the property and provides safeguards. Also, when the title deed is issued (2 -5 years after the completion of the project), it will be registered in the name of the Developer then it will be transferred to the buyer and recorded in the government archives. The government archives are confidential and will not be published or made accessible under any circumstances.
Contrary to some other countries, where the purchase of property is linked with inherent risks, Cyprus has never been involved in the nationalization of any sector of the economy, or in the expropriation of property owned by non-Cypriots, in line with the government’s efforts to create a favourable climate for such investments.
Provided that you have a valid contract and a purchaser. If the buyer wants to sell the property before the title deeds are issued, the contract between him/her and the Developer will be cancelled and a new one will be issued between the Developer and the new purchaser.
Cancellation fees are charges to the seller approximately €2.000, covering cancellation fees and expenses.
Usually properties in Cyprus are insured in case of fire, theft, earthquake, natural calamity.
- Communal ownership:
Owners of properties in complex usually with communal swimming pool, green area, security, and service staff pay communal expenses in the amount of ~300-450 Euro per year.
Electricity installation – 17 евро.
Electricity bill is sent every 2 month and is approximate 100 Euro for a family of 3 people.
Gas gallon – 22€, fill-up – 8€.
Water Installation – 75 Euro.
Water bill is paid quarterly in consideration of 8,5 Euro per monthly use below 20 m3 and 0.34 Euro per every next 10 m3 above the mentioned volume.
- Satelite TV:
Satelite antenna 1.3 to 1.9 m in diameter costs ~1000€.
- Telephone line:
Installation – 80 Euro.
Bill comes monthly, call’s tariff in local network is 0,0425 Euro/min.