PROPERTY IN CYPRUS
Quality of life in Cyprus, along with the
standard of living makes it a very attractive proposition for those
looking for an alternative place to live permanently or to invest
in a holiday home.
The Island is a place of contrasts - towns with the latest technology
and entertainment or villages where life has changed little over
the centuries. The cost of living is relatively low and general
services compare favorably to the prices in the United Kingdom.
Eating out is an experience - take your choice - small family-run
tavernas where you can taste Cypriot delicacies at very little cost
to 5-star International venues where you can pay as much as you
would in a top-of-the-range London restaurant.
EU citizens have no restrictions on how many properties or pieces
of land they can purchase freehold.
Non-EU citizens are entitled to freehold ownership of one villa,
apartment or piece of land to a maximum size of 4000 m2. Property
in Cyprus is Freehold as the Leasehold system is virtually unknown.
Acquiring Title Deeds:
With the signing of the Contract of Sale and payment of the deposit,
the Contract is registered at the Land Registry Office. This procedure
protects the purchasers ownership rights until the title deeds
are issued as the contract cannot be withdrawn by anyone and therefore
the property cannot be leased, sold or mortgaged. This status can
only be altered by the purchasers themselves.
The transfer of ownership from the vendor to the purchaser is done
at the Land Registry Office either by the buyer in person or by
an appointed power of attorney.
Property Transfer Fees:
Transfer Fees are payable to the Land Registry Office. The amount
is based on a sliding scale as shown below. The fee is paid by the
purchaser and is due when the Title Deeds are transferred to his
Value of Property
Rate of Transfer Fee %
A Stamp Duty of
1.5 per thousand is required
on purchase contracts with a value of up to 170,860.
The rate for amounts in excess of this is
2 per thousand. The Duty
is due within 30 days of signing the Contract and is payable by
Immovable Property Tax:
The registered owner of a property in Cyprus is liable for this
annual tax which is based on the value of his property. Property
valued at up to 170,860
is exempt from tax. For property exceeding that value the rates
are as follows:
3.00 per thousand
Sale of Property:
You can sell your property at any time with no restrictions. If
you are a non-resident alien and you purchase a holiday home with
foreign currency you can take out in foreign currency the proceeds
Capital Gains Tax:
Gains from the sale of immovable property in Cyprus are, as a
rule, at the rate of 20%. However generous exemptions are provided
for: i.e. net capital gains up to 85,430
earned from the disposal of a residence home are tax exempt.
Local Authority Taxes:
Property taxes charged by the local authority are in the range
of 50 - 200
per annum, dependent upon the size of the property. This tax covers
the cost for street lighting, garbage disposal etc.
Value Added Tax - VAT:
VAT at a rate of 15% is charge on the sale price of each property.
It is possible to claim back most of the VAT you have paid on
a property if you are a Cypriot or a European Union citizen permanently
residing in the Republic of Cyprus and you are using the buying
property in Cyprus as a permanent residence. The buying property
must be new and used for the first time as residence. The total
covered area of the buying property must not exceed 250m2.
(For more information please visit www.cyprus.gov.cy