Buying Property in Cyprus
RELATED TAXES AND FEES
Below is an overview of the typical taxes and fees payable upon purchasing property in Cyprus.
Property transfer fees are charged by the Department of Land and Surveys, and are payable by the purchaser upon transfer into their name. They are as follows:
|Up to €85,000||3%|
|More than €170,000||8%|
Properties which are subject to VAT are exempt from transfer fees. Properties which are not subject to VAT are eligible for a 50% reduction from the above fees.
If the property is jointly owned by two or more individuals, the purchase value is divided per each owner. This, in effect, results in reduced transfer fees.
Stamp duty is a one-off payment payable by the purchaser – the amount depends on the value of the property.
|Up to €5,000||0%|
|More than €170,000||0.2%|
Capital Gains Tax
Capital gains tax refers to the tax payable by both residents and non-residents (levied at 20%) on gains arising from the disposal/sale of immovable property in Cyprus.
There are several allowances available for capital gains tax. For plots or land, for example, the first €17,086 is exempt from taxation.
Local Authority Tax
This is paid annually and varies according to the size of the property. It includes garbage disposal, street lighting, etc.
These refer to an owner’s share towards the cost of cleaning and maintenance of a property’s communal areas, gardens, etc, as well as management repairs and fees. They are payable at fixed intervals throughout the year, and depend on the property and development.