Property, taxes & fees
Transfer fees
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:
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:
| Property Value (Euro) | Transfer fee rate (%) |
|---|---|
| Up to €85.430 | 3% |
| From €85.431 to €170.860 | 5% |
| From €170.861 and over | 8% |
| Table 1 | 25 |
If the property is in joint names e.g. of a couple (husband and wife) or two individuals, then the purchase value is divided into two parts, which results in reduced transfer fees.
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.
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.
| Market value of property in Euros | Annual property tax (%) |
|---|---|
| Up to 170.860,14 | Exempt |
| From 171.860,15 to 427.150,36 | 0,25 |
| From 427.150,37 to 854.300,72 | 0,35 |
| Over 854.300,72 | 0,40 |
| Table 2 | 26 |
Capital Gains Tax
On gains from disposal of immovable property situated in Cyprus, capital gains tax will be imposed at the rate of 20% with the first € 17.086,14 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the sales proceeds and the market value of the property as of 1/1/1980.
The seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house.
Gains from the disposal of a private residence are exempt up to € 85.430,07 in total if the owner resides in it continuously for at least five years prior to disposal.
Stamp duty
After the signing of the Contract of Sale, the purchaser may stamp it within 1 month of its signing by paying the stamp duty which, according to the value of the property, will be as follows:
(a) For a purchase price up to EUR170.860,00 = 1.5 per thousand;
(b) For a purchase price over EUR170.861,00 = 2 per thousand and
(c) For a purchase price over EUR8.550.000,00 = fixed amount of EUR17.100,00
Local Authority Taxes & Rates
Local authority rates and taxes vary according to each Municipality. Property owners could expect to pay approximately €85-256 per annum depending on the size of the property.
This tax accommodates refuse collection, street lighting, sewerage, etc.
The basic utilities of electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.
V.A.T
Since 14/1/13 a new statute in respect of VAT on properties has been introduced. Disposals of newly-constructed properties for which a proper application for planning permit has been submitted with the relevant authorities after 14/1/13 are subject to VAT at standard rate of 18%.
VAT has been reduced to 5% for first-time buyers for residences up to 250 square meters.
Under certain conditions, a grant is given to entitled persons for the purchase of newly-constructed properties that are used as the main permanent residence.
Tax Advantage
Cyprus is unique when it comes to the taxation aspects of living on the island. The following income tax rates apply to individuals:
On gains from disposal of immovable property situated in Cyprus, capital gains tax will be imposed at the rate of 20% with the first € 17.086,14 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the sales proceeds and the market value of the property as of 1/1/1980.
The seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house.
Gains from the disposal of a private residence are exempt up to € 85.430,07 in total if the owner resides in it continuously for at least five years prior to disposal.
Stamp duty
After the signing of the Contract of Sale, the purchaser may stamp it within 1 month of its signing by paying the stamp duty which, according to the value of the property, will be as follows:
(a) For a purchase price up to EUR170.860,00 = 1.5 per thousand;
(b) For a purchase price over EUR170.861,00 = 2 per thousand and
(c) For a purchase price over EUR8.550.000,00 = fixed amount of EUR17.100,00
Local Authority Taxes & Rates
Local authority rates and taxes vary according to each Municipality. Property owners could expect to pay approximately €85-256 per annum depending on the size of the property.
This tax accommodates refuse collection, street lighting, sewerage, etc.
The basic utilities of electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.
V.A.T
Since 14/1/13 a new statute in respect of VAT on properties has been introduced. Disposals of newly-constructed properties for which a proper application for planning permit has been submitted with the relevant authorities after 14/1/13 are subject to VAT at standard rate of 18%.
VAT has been reduced to 5% for first-time buyers for residences up to 250 square meters.
Under certain conditions, a grant is given to entitled persons for the purchase of newly-constructed properties that are used as the main permanent residence.
Tax Advantage
Cyprus is unique when it comes to the taxation aspects of living on the island. The following income tax rates apply to individuals:
| Income in EURO | Tax Rate (%) | Accumulated Tax in EURO |
|---|---|---|
| €0 - €19.500 | ----- | ----- |
| €19.501 - €28.000 | 20% | 1.700 |
| €28.001 - 36.300 | 25% | 3.775 |
| over €36.301 | 30% | ------ |
| Table 3 | 27 | 1994 |
Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an exception for the first €3.417 is granted. Additionally, Cyprus has Double Taxation treaties with many European and other countries, safe-guarding its residents from paying tax in both countries. This gives the option to the citizens of those countries to take advantage of the very low rate in Cyprus.
Duty Free privileges
Duty free cars and household goods are just two examples of the products that those who move into their Cyprus property can benefit from. Third country citizens benefit fully from these privileges. With respect to the rights of EU citizens, duty free privileges have changed since Cyprus’ accession to the EU, where now only retirees are eligible.
Duty Free privileges
Duty free cars and household goods are just two examples of the products that those who move into their Cyprus property can benefit from. Third country citizens benefit fully from these privileges. With respect to the rights of EU citizens, duty free privileges have changed since Cyprus’ accession to the EU, where now only retirees are eligible.
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