Property Fees & Taxes

 

  1. Transfer fees

    1. Cyprus Stamp Duty

      In the case of a sales contract, the purchaser, are liable for the payment of Stamp Duty at the rate of:

      Value Rate
      The first €5.000 0%
      €5.001 - €170.000 0.15%
      More than €170.000 0.2%

      Example Figures

      Purchase Price: €300.000

      €5.000 at 0% = 0
      €170.000 at 0,15% = €255
      remaining €125.000 at 0,20% = €250
      Total Stamp Duty payable is €455

  2. Property Transfer Fees in Cyprus

    1. The fees charged by the Department of Land and Surveys for the transfer of immovable property are:

      Property Price Rate Fee Accumulated Fee
      First €85,000 3% €2,550 €2,550
      €85,001 to €170,000 5% €4,250 €6,800
      Over €170.000 8%    

      Properties subject to VAT are exempt from the above transfer fees.
      Properties not subject to VAT are eligible for a 50% exemption from the above transfer fees.

      Example 1
      No transfer fees payable for properties with VAT.
      Property Price (net of VAT) €300,000
      Transfer fee €17,200
      Transfer fee now €0 (save €17,200)
      Example 2
      50% transfer fees payable for properties without VAT.
      Property Price €300,000
      Transfer fee €17,200
      Transfer fee now €8,600

      Cyprus VAT Payable on Property

      Since Cyprus became a member of the EU in 2004, a standard VAT rate of 19% is required to be paid when buying a new property. However, in cases where an application for a town permit was filled before the 1st of May 2004, VAT is not charged.

      Following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.

      For the reduced rate to be in effect, certain terms and conditions must be met:

      • The property must be used as the primary and permanent residence of the applicant (for the next ten years).
      • The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
      • The applicant must be an individual, over 18 years old, thus legal entities are excluded.

      The reduced VAT rate of 5% is applied on the first 200 square meters (building coefficient) of the property as per the architectural plans submitted to the Authorities. On the remaining square meters, the standard rate of 19% is imposed.

    2. Capital Gains Taxes (Seller)

      The CGT rate is set at 20% of the chargeable gain realized from the sale of a property as adjusted for inflation, certain lifetime exemptions and other allowable expenses.

      The profit is calculated as the difference between the sale price and the purchase cost less any interest paid on payments (e.g. housing loans) in the course of acquiring the property, the inflation rate as published by the government, services of registered estate agents, the costs of any approved additions to the property and certain personal allowances.

      For more information in regards to the final payment will be provided by the local tax governmental department.

  3. Annual Property Taxes and Fees in Cyprus

    1. Immovable Property Ownership Tax

      Immovable Property Tax has been abolished as of the 1st of January 2017.

      Until the end of 2016, the registered owner of the property, was liable to an annual Immovable Property Ownership tax calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the year). Immovable Property Tax was payable to the Inland Revenue Department of the Republic of Cyprus.

    2. Local Authority Fees

      Depending on the size of your property, local authorities charge between €85 – €500 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local municipal authority.

    3. Municipality Tax

      As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1‰ - 2‰. Municipality tax is payable to your local municipal authority.

    4. Sewerage Tax

      As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3‰ – 7‰. Sewerage taxes are payable annually to your local sewerage board.

  4. Other Taxes & Benefits in Cyprus

    1. Inheritage Tax

      There is no inheritage tax in Cyprus

    2. Tax Benefits

      Corporation tax in Cyprus is currently at 12,5%. There are various Tax Advantages, especially attractive to those looking to invest in Cyprus or foreign citizens retiring to Cyprus.