The Purchasing Process
Compared to many other countries the process of purchasing property in Cyprus by foreigners is very simple. Based mainly on the Anglo-Saxon legal system, the Land Registry Department in Cyprus is one of the most advanced and reliable systems in the world. All contracts and other clerical work are in English. Purchasers of property in Cyprus will therefore be far more secure with regard to their title deeds, than they might be in another country.
Non-Cypriots are currently entitled to Freehold ownership of up to a maximum of three donums [4014 square metres] through an application to and approval by the Council of Ministers.
In the case of non-Cypriots it is a prerequisite that the property be purchased with foreign exchange.
Property Taxes and Fee's
Immovable Property Tax
This tax is imposed on the market value of immovable property as at the 1st January 1980 and applies to the immovable property held by the tax payer on the 1st January of each year.
The tax rates are as follows:
Immovable Property Tax
Property Value CYP |
% per thousand |
0-100.000 |
0% |
100.001-250.000 |
2.5% |
250.001-500.000 |
3.5% |
Over -500.001 |
4% |
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Every registered owner whose immovable property exceeds CYP100.000 must submit a declaration of immovable property (IR301 and IR302) and pay the respective tax every year before the 30th September.
Capital Gains Tax
On disposal of the property, the owner will be liable to capital gains tax at the rate of 20% on the gain. The first 10,000cyp (or 50,000cyp in the case of one’s private residence) is exempt and there is also an indexation allowance. Transfer Fees & Title Deed
Transfer of ownership is a simple process, which takes place with the Land Registry Office for issuing of the Title Deed after completion and delivery. When the Land Registry Office registers the immovable property in the name of the purchaser and the Title Deed is issued by the relevant Government authority, the purchaser must pay the applicable transfer fees.
As from 19th March 1999 the transfer fees are as follows:
Transfer Fees
Property Value CYP |
Transfer fees |
0- 50,000 |
3% |
50,001-100,000 |
5% |
over -100,001 |
8% |
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The purchaser is liable to the payment of the transfer fees on the basis of the value of the property as assessed by the District land values.
Stamp Duty
The purchase contract should be stamped within 30 days of the it’s signing at the rate of
1.5 per thousand up to CYP100,000 and thereafter at the rate of 2.0 per thousand.
Legal System & Taxation
It is important to find a professional and fully qualified lawyer either in the UK or Cyprus. Blaney Homes can assist in this respect with professional specialist contacts that have been established over many years.
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