Buying Property in Cyprus
Buying property in Cyprus.
Compared to other countries, the procedure for buying property in Cyprus is relatively simple. As non-residents of Cyprus, citizens of other countries can buy the following types of property or real estate:
- Flat/Apartment.
- A house on a plot whose territory does not exceed 4,014 square meters.
- A plot whose territory does not exceed 4,014 square meters on the proviso that a building must be erected within a reasonable time.
Property purchase permit.
According to the Law, citizens of other countries must first obtain permission from the Council of Ministers in order to be able to buy immovable property in Cyprus. Such permission is usually given without any problems and to do so one should submit a relevant application to the Council of Ministers (which must include a written contract for the purchase of the said property, the terms and the terms of payment etc).
Stamp-duty
Stamp-duty must be paid within 30 days of signing the contract. ..The cost is 2.57 Euro for every thousand, up to the purchase price of 171 000 Euro (i.e. 0.0015%), and 3.42 Euro for every thousand, over 171 000 Euro (i.e. 0.002%).
Example 1: The cost of the property you are buying is 135,000 Euro. The stamp-duty will total 135,000 X 0.0015 = 205.20 Euro.
Example 2: the cost of the property you are buying is 251,000 Euro. The stamp-duty will total 171,000 Ñ… 0.0015 + 80,000Ñ… 0.002 =256.50 + 160 = 416.50 Euro.
Capital gains tax.
If a vendor wants to sell his or her property (which is located in Cyprus) then (before transferring the said property to the seller) capital gains tax is due at 20% on the profit of the sale (excluding the first 17,100 euros for every person which is tax free).
Real estate / property tax - Local taxes and tariffs.
Owners of immovable property in Cyprus have to pay real estate/property tax annually. In accordance with the law, from January 1st 1980, all real estate or property bought by foreign citizens in Cyprus costing no more than 171,000 EUROS is not taxable. Properties costing more than 171,000 EUROS are taxable according to the following amounts:
| Property price (in Euro) | Annual tax on immovable property (%) |
|---|---|
| up to 171,000 | Not taxable |
| From 171,000 to 425,000 | 0.2 |
| From 425,000 to 855,000 | 0.3 |
| Above 855,000 | 0.35 |
Owners of immovable property in Cyprus have to pay local taxes and tariffs for the said property. Roughly calculated, these taxes make approximately 85.5-256.5 EUROS per year, depending on the size of the property. These taxes are levied for waste removal services, street lighting, sewerage, and so forth. Communal services, electricity, water, and telephone are paid individually by every property owner.
