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.
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.
Legal And Taxation 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.
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.
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:
Legal And Taxation
Value of Property
Transfer fee Rate
Up to 85,000 Euro
From 85,001 – 170,000 Euro
Over – 170,000 Euro
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
Annual property tax
Immovable Property Tax is abolished as from January 2017.
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.
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