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CYPRUS
PROPERTY BUYING GUIDE
Acquisition
Under the Immovable Property Acquisition
Law, non- Cypriots, Companies and trusts are
entitled to buy freehold immovable
properties, subject to prior permission by
the Council of Ministers. This must be
submitted in writing by the non-Cypriot
buyer after the Contract of Sale is signed.
The procedure is merely a formality, and
permission is normally granted more or less
as a matter of course to all bona fide
buyers wishing to purchase a flat, house or
piece of land for the erection of a house
not exceeding 3 donums (4,014sqm). This and
other matters can easily be carried out for
you by a solicitor.
Once permission is granted and the property
is registered in the buyer’s name, there is
no restriction on selling the property or
disposing of it by will.
Mortgage & Finance
All commercial banks in Cyprus are
authorised to offer mortgage facilities to
assist in the purchase of property the loan
will be in foreign currency and will be to a
maximum of 70% of the value of the property
with a repayment period of usually not more
that 10 years.
Contract of Sale of Immovable Property
Under Cypriot Law, such contracts must be in
writing. It is also advisable that Contracts
of Sale be deposited at the relevant
District Lands Office within 2 months of
signing the contract, so that the buyer’s
right to pursue the remedy of Specific
Performance in the event of breach, are
protected. Ownership in Cyprus is denoted by
title deeds issued by the District Lane
Office. Therefore, all contracts must
provide for the transfer and registration of
the property in the buyers name and to
ensure title deeds are obtained.
Transfer of the Title Deed
Once the Council of Ministries has granted
permission to the buyer’s application to
acquire property, transfer of ownership can
be done. Transfer tax fees based on the
value of the property, are payable by the
buyer and are as follows:
Value of property In Cyprus pounds (CYP)
Transfer fee %
Up to : CYP 50,000 3%
From : CYP 50,001 – 100,000 5%
Over : CYP 100,000 8%
For example, a property purchased by an
individual at CYP 90,000; the transfer fee
would be:
The first CYP 50,000 x 3% = CYP 1,500
The next CYP 40,000 x 5% = CYP 2,000
Total Transfer Fee Tax Due = CYP 3,500
However, should the purchase be made in
joint names (provided the price is more than
CYP 50,0 then be as follows:
For example, on a property purchased at CYP
90,000 the transfer tax would be:
The first CYP 45,000 x 3% = CYP 1,350
The next CYP 45,000 x 3% = CYP 1,350
Total Transfer Tax Fee Due = CYP 2,700
Immovable Property Tax
The annual immovable property ownership tax
is based upon the market value of the
property in 1980, which is much lower than
the current market values, so for many
properties in Cyprus, there is no immovable
tax due.
Value of property in Cyprus Pounds (CYP)
Annual Property Tax
Up to : CYP 100,000 Exempt
From : CYP 100,001 – 250,000 2.5%
From : CYP 250,001 – 500,000 3.5%
Over : CYP 500,000 4%
Stamp Duty
A one-of duty is levied on the purchase of
property in Cyprus and rates are dependant
on the contractual purchase amounts. The
amount is payable to the Tax Authorities and
should be paid within 30 days of signing the
contract.
Value of property in Cyprus Pounds (CYP)
Stamp Duty
Up to : CYP 100,000 0.15%
Over : CYP 100,000 0.20%
Inheritance Tax
This was abolished as of 1st January 2000.
Local Authority Tax
This tax covers the cost of refuse disposal,
street lighting etc, and ranges from
approximately CYP 30.00 – 100.00 Per annum,
dependent on the size of your property.
Basic utilities such as electricity, water
and telephone are payable direct to the
relevant suppliers and charges based on
meter readings. |
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