Description:

Because Cyprus was a british colony until 1960, the legal system is very similar to Great Britain. Below you will find what taxes and fees you will be liable for when purchasing a property in Cyprus.

Stamp Duty:
 
Stamp duty is levied on the purchase of property in Cyprus. The rate varies depending on the purchase price of the property and payment is due within 30 days of signing the Sales Agreement. The amount is payable to the tax authoroties usually via your Lawyer.

Purchase price in Euros €                      Stamp Duty in %
Up to €170,860                                              0.15
Over €170,861                                               0.20

Transfer Fees (Title Deeds):

When the property is registered at the Land Registry Office the purchaser will be liable to pay the following transfer fees. The fees are charged on the property's market value at the date purchased.

Property value in Euros €                     Fees as a %

Up to €85,430                                             3
€85,431 - €170,860                                    5
Over €170,861                                            8

Immovable Property Tax:

Property owners are liable for this annual tax which is based on the value of the property as of 1st January 1980. Property valued up to €170,860 is exempt from property tax.

The rates below are applicable only after the title deeds are transfered to the purchaser.

Taxable Value in Euros €                    % on Taxable value

Up to €170,860                                          Nil
€170,861 - €427,150                                0.25
€427,151 - €854,300                                0.35
Over €854,301                                          0.40 

Capital Gains Tax:

Capital Gains Tax is levied on gains arising from the sale of a property at 20%.

The gain is calculated as the difference between the sales proceeds and the original cost of the property.  Interest on payments paid for the acquisition, additions to the property and inflation rate, as published yearly by the Government, are deducted from the tax charged.

Individuals are entitled to the following lifetime allowances on Capital Gains Tax:

• The first €17,086.00 of gains arising from the disposal of any property are exempted.
• The first €25,629.02 of gains arising from the disposal of agricultural land by the farmer are exempted (subject to certain conditions).
• The first €85,430.10 of gains arising from the disposal of a house used by the owner for his/her own habitation are exempted (subject to certain conditions).

 

Local Authority Tax:

This tax covers the cost of garbage collection, street lighting and other local munincipality fees. The cost is dependant on the size of the property and the munincipality rates. It is an annual payment every October and should range between €51 - €170 in cost.

 

Communal Expenses:

These are annual fees to cover an owners share towards the cost of cleaning and maintaining a communal swimming pool, communal areas, gardens  and managements fees. These fees vary from developer to developer.
  
Property for sale in Cyprus.

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