How to Buy in Cyprus
As a non-Cypriot, you are entitled to freehold ownership of a villa or an apartment or a piece of land.
Property prices in Cyprus are still relatively low compared to other European destinations. You are entitled to pay for your property in foreign currency.
Having signed a contract of sale for your property, a routine procedure, it will be necessary to make an application to the Council of Ministers to grant its approval for a non-Cypriot to acquire immovable property.
The property taxes and transfer fees are minimal, compared to other European destinations.
When you decide to sell your property in the future, you may export from Cyprus the original purchase price as well as any profit.
Lodging of Contract
As from the date of signing the contract of sale the buyer has the right within 2 months from that date to lodge the contract with the Land Registry Office for what is called Specific Performance purposes. This is very important for the protection of the buyer for two reasons. First, once the contract is lodged, the buyer is considered the beneficial owner of property until the time he becomes both the beneficial and legal owner of the property by transferring the title deeds into his name. Therefore, there is a clear declaration that he bought the property in question, the Land Registry Office is aware of this transaction and his interest protected e.g. by preventing the vendor to resell the same property to somebody else or by having a mortgage over the property.
The second reason is to secure that the title deeds will pass to the buyer. Title deeds usually are ready 3-4 years after completion of the whole project, which is considered a standard practice in Cyprus (unless the property sold was built some years ago and as a single project, which means that the Title deeds are available when the contract is signed).
Stamp Duty
The purchaser is liable for the payment of stamp duty at the rate of 1.5 pounds per thousand up to the value of CY£100,000 and thereafter the rate is 2 pounds per-thousand. This duty should be paid within 30 days of signing the contract.
Property Transfer Fees:
These are necessary to transfer FREEHOLD ownership to your name and can be done as soon as the relevant government authority has issued the title deed and the purchase has been settled.
Property Transfer Fees (continued)
These fees are payable once only to the land registry office and are according to the following scale:
Value of property CYP Transfer fee rate
Up to CYP50,000 3%
CYP50,001 - 100,000 5%
Over CYP100,000 8%
For example:
Purchase price CYP 85,000
1st CYP 50,000
3% = CYP1500
Next CYP 35,000
5% = CYP1750
Total = CYP3250
Property Taxes
Local Authority Taxes (Rates): These are between 30-100 CY£ per annum depending on the size of the property and are for refuge collection, street lighting, etc.
Immovable Property Tax: The registered owner of the property is liable for this annual tax which is based on the value of the property using 1980 pricing indices.
Value Cy£ Annual Tax
Pounds per Thousand
Up to 100,000 exempt
100,001 - 250,000 Cy£ 2.50 eg: House 110K Tax 110 X 2.5 = Cyp275.
250,001 - 500,000 Cy£ 3.50 eg: House 300K Tax 300 X 3.5 = Cyp1050
over 500,000 Cy£ 4.00 eg: House 600K Tax 600 X 4.0 = Cyp2400.
Capital Gain Tax: For foreign owned property that is sold, generous exemptions from capital gains tax exist.
Estate Duty/Inheritance Tax : Estate Duty, which is paid on assets based in Cyprus , provides very generous allowances, which in effect, means that in most cases nothing or only a small amount is paid. You may also make out your will as a Cypriot resident, which will exclude you from country of current residence inheritance tax. |
