Cyprus Stamp Duty
In the case of a sales contract, the purchaser, are liable for the payment of Stamp Duty at the rate of:
|The first €5.000||0%|
|€5.001 - €170.000||0.15%|
|More than €170.000||0.2%|
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
Property Transfer Fees in Cyprus
The fees charged by the Department of Land and Surveys for the transfer of immovable property are:
|Property Price||Rate||Fee||Accumulated Fee|
|€85,001 to €170,000||5%||€4,250||€6,800|
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.
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 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.
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.
Annual Property Taxes and Fees in Cyprus
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.
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.
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.
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.
Other Taxes & Benefits in Cyprus
There is no inheritage tax in Cyprus
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.