On purchaser’s request, Lanitis Development is willing to process the application to the Council of Ministers for acquiring the necessary permission for the nominal fee of €1,500 payable only when the permission is granted.
Foreign buyers can also appoint a solicitor in Cyprus to handle their affairs.
On the signing of a contract the purchaser is liable to pay stamp duties at the rate of 0.151% up to €170,860 and thereafter at the rate of 0.201% per €1,709. The Purchase Contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.
Upon transfer of the property and registration in the
purchaser’s name, the District Land Registry Office, will charge Transfer fees.
|
Value of Property (€)
|
Transfer Fee
|
|
1.710 - 85.430
|
3%
|
|
85.431 - 170.860
|
5%
|
|
170.861 and over
|
8%
|
The Municipal Authorities also levy an Annual Property Tax at a rate of approx. €34 to €51 per year. Other authorities may also impose a Sewage Tax of between €34 and €68, depending on the value of the property.
Capital Gains Tax
If the purchaser decides to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange, may be transferred abroad at the time of the resale. The equivalent of the full purchase price and any increase in 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, however, the first €17,086 are tax exempt. Provided two buyers (maximum 2) are on the original Contract of Sale, then the tax allowance can be up to €34,172.
Inheritance Tax
Inheritance Tax is not imposed.
Tax Privileges
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time; approximately one year. Also, no duty is levied on cars, allowing retired couples to enjoy the additional concession of two duty free cars.
Tax Advantages
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of approx. 5% or less, depending on income. Additionally, Cyprus has Double Taxation Treaties with many European and other countries, safeguarding its residents from paying tax in both countries.
Local Authority Fees
Depending on the size of your property, local authorities charge between €85 and €256 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local Municipal Authority.
Municipality Tax
As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1% to 2%. Municipality Tax is payable to your local Municipal Authority.
More Information
For more information about some of the issues you should consider if you are thinking of buying property in Cyprus, see our Guide to Property Buying.