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Legal And Taxation

Legal And Taxation, Under the Cyprus Immovable Property Tax Laws all property owners, they are liable to pay an annual tax based on the total value of all the immovable property registered in their name.

  • Stamp duty

    On the signing of a contract the purchaser is liable to pay stamp duties at the rate of 0.151% for properties worth up to 170,000 and at the rate of 0.201% for properties worth more.

  • General rule

    Newly erected building (and the associated land) are subject to the V.A.T. RATE of 19%. The transfer of land on its own and used buildings are not subject to V.A.T.

  • Permanent Residence

    Since 8th of June 2012 a reduced V.A.T. rate of 5% is applied on the purchase or construction of a house or flat to be used as a main residence provided the area of the property does not exceeds 200 sq.m. If the area of the property exceeds 200 sq.m then the reduced rate of 5% applies on the first 200 sq.m and the rest of the sq.m are subject to 19% V.A.T.

  • Transfer Fees

    No transfer fees
    will be payable when the property to be transferred is subject to V.A.T. If
    the property is not subject to V.A.T. transfer fees will be reduced by 50%.
    This is valid as long as the sales contract was issued and submitted to the
    Land Registry Office within this period.

    The Property Transfer Fees are payable once only to the Land Registry Office according to the
    following scale:

    Value of Property in Euros Transfer fee Rate
    Up to 85,000 Euro 3%
    From 85,001 – 170,000 Euro 5%
    Over – 170,000 Euro 8%
    For example
    Purchase price in Euros 200,000
    1st 85,000 Euro 3% = 2,563 Euro
    2nd 85,000 Euro 5% = 4,272 Euro
    3rd 29,140 Euro 8% = 2,331 Euro
    Total 9,165 Euro
  • Annual property tax

    Immovable Property Tax is abolished as from January 2017.

  • Inheritance tax

    Inheritance tax was abolished as from 1st January 2000.

  • Issue of separate title deeds

    Once an individual property or development is completed, the Land Registry Office issues separate title deeds and transfers the title deed for each unit within a development to the purchaser(s). This process normally occurs within 2-3 years from the completion of a project.

Budget-Planning

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