Cyprus Legal Information | Taxes And Duties

Property acquisition in Cyprus is very simple compared to other countries. Existing regulations permit Non-Cypriots to acquire only ONE property in Cyprus if they do not permanently reside in Cyprus. After joining the E.U Non-Cypriots buyers that are permanent residents can buy as many properties as they wish.

Non permanent residents however presently require permission from the Council of Ministers in order to transfer the property into their names. This is normally done once an agreement of sale is signed and permission is a mere formality.

 

 

Purchasers safeguards

The legal system in Cyprus is largely based on the British system and the purchasers right are safeguarded in many ways. For the purchaser's protection, the Land Registry in Cyprus provides a simple and effective legal instrument called 'Specific Performance'. If there is no title deed to the property that you are buying, the contract once signed is registered in the Land Registry. This procedure protects the purchaser's ownership rights until the title deeds are issued and transferred to your name. The contract once registered cannot be withdrawn by anybody but you, and the property cannot thus be leased, transferred or mortgaged. Only you, as purchaser, can alter this status.

Stamp Duty

Stamp Duty is payable after signature of the agreement of sale. The purchaser is liable for stamp duty which is payable within 30 days of signature of the agreement.

The rate is based on the purchase price of the property and is calculated at the rate of CYP 1.50 pounds per thousand upto the value of CYP 100 000. Thereafter the rate is CYP 2.00 per thousand.

For example if the purchase price is CYP 150 000
the first CYP 100 000 at 1.5% = CYP 150
the following CYP 50 000 at 2.0% = CYP 100
Total = CYP 250

Transfer fees

Property transfer fees are payable to the Land Registry office when the title deed is transferred to the Purchasers name. The amount is based on a sliding scale as shown below and the fees are charged on the property's market value at the date of purchase.

Transfer fees (% on property value)

Up to CYP 50 000 3%
CYP 50 001 to 100 000 5%
Over CYP 100 000 8%

If the property has been purchased by two persons this reduces the amount by several thousand pounds.

On the transfer of a property purchased by one person for an amount of CYP 110 000 the purchaser will pat CYP 4800 in transfer fees.

The same property purchaser by two individuals (husband & wife), the two purchasers will pay a total of CYP 3500.

Immovable property tax

The registered owner of immovable property is also subject to tax under other laws such as municipal or village regulations. These are however very minimum and range in total from CYP 50 to CYP 100 per annum.