BUYING PROPERTY IN CYPRUS
Compared to many countries, the mechanisms of property purchase in Cyprus by foreigners are relatively simple. Non-Cypriots are permitted to buy, for their personal use, either:
a) an apartment, or b) a house on a site not exceeding 2 donums (2,675 sq. metres) or c) a piece of land not exceeding 2 donums.
Permission to do so must be sought from the Council of Ministers. However this is granted more or less as a matter of course to all bonafide purchasers. And in certain circumstances a non-Cypriot may be given permission to own a property that exceeds these dimensions. Click here for relevant application form
After the accession of Cyprus to the European Union it is expected that there will be no restrictions for the citizens of the E.U. countries to buy any type of property in Cyprus.
Paying for Cyprus property
You are required to pay for your property in foreign currency. Personal cheques, bank drafts and telex transfers are all acceptable.
Approval of the Council of Ministers
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.
Selling your property
If you sell, you can repatriate the funds immediately to the value of the purchase price including any amounts spent on improvements and/or additions to the property and paid for in properly imported foreign currency. Profits can also be repatriated.
Property Transfer Fees
These are necessary in order to transfer FREEHOLD ownership to your name and this can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been settled.
The Property Transfer Fees are payable by the buyer to the Land Registry Office according to the following scale:
| Value of Property CY£ | Transfer fee rate % |
| up to 50.000 |
3.0
|
| from 50.001 - 100.000 |
5.0
|
| from over - 100.000 |
8.0
|
| For Example: | |
| Purchase price CY£60.000 |
|
| 1st CY£ 50.000 |
3% = CY£ 1500
|
| Next CY£ 10.000 |
5% = CY£ 500
|
| ΤΟΤΑL |
CY£ 2000 = 3.33%
|
Local Authority Taxes (Rates)
These are normally between CY£30 - 100 per annum depending on the size of your property and are for refuse collection, street lighting etc.
Immovable Property Tax
The registered owner of the property is liable for this annual tax and it is based upon the value of the property.
| Value CY£ | Annual Tax Pounds per Thousand (%) |
|
| up to |
100.000
|
exempt
|
| 100.001 |
250.000
|
2.0
|
| 250.001 |
500.000
|
3.0
|
| over |
500.000
|
3.5
|
Capital Gains 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 situated in Cyprus, provides very generous allowances which, in effect, means that in most cases nothing or only very small amounts are paid.
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 CY£ 2.00 per thousand. This duty should be paid within 30 days of signing the contract.