Buying Property in Cyprus

BUYING PROCEDURE

Purchasing property in Cyprus is a very simple process, especially when compared to other countries.

Upon signing the agreement of property sale and paying a deposit, a certified copy of the contract must be submitted to the Land Registry Department. This procedure is known as Specific Performance and, essentially, protects the purchaser’s ownership rights until the title deeds are issued and transferred into their name.

Non-EU nationals are allowed to acquire one apartment, house or building plot, as well as one office, with prior permission from the Council of Ministers which can be obtained through an easy procedure. There are no restrictions applicable to EU nationals or legal entities.

RELATED TAXES AND FEES

Below is an overview of the typical taxes and fees payable upon purchasing property in Cyprus.

Transfer Fees

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:

VALUE	RATE
Up to €85,000	3%
€85,001–€170,000	5%
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

Stamp duty is a one-off payment payable by the purchaser – the amount depends on the value of the property.

VALUE	RATE
Up to €5,000	0%
€5,001–€170,000	0.15%
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.

Communal Expenses

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.