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Legal Info

1. PROPERTY TRANSFER FEE: 

This covers the actual transfer of FREEHOLD ownership to your name and is due when the property is registered in your name at the Land Registry Office. This process is done following the Council of Minister' approval.

The Property Transfer Fees are a once only payable expense to the Land Registry Office based on the following scale (excluding VAT):

Value of Property in € Transfer fee Rate (%)
Up to 85.430 3
From 85.431 to 170.860 5
From 170.861 and over 8

2. IMMOVABLE PROPERTY TAXES

The registered owner of the property is liable for this annual tax which is based on the total value of the said property with prices of 1.1.1980.

Value of Property in € Annual Tax Per Thousand in ‰
Up to 120,000 0
120,001 – 170,000 4
170,001 – 300,000 5
300,001 – 500,000 6
500,001 – 800,000 7
Above 800,000 8

3. CAPITAL GAINS TAX

Capital Gains Tax is levied at 20% on gains arising from the disposal of the property when the seller is an individual and 10% for legal entities (corporate tax). However, for foreign-owned property that is sold, generous allowances and exemptions from Capital Gains Tax exist. As the gain also takes into account inflation, the actual appreciation coupled with the allowances and exemptions results in a minimal taxable amount. The first €85,430 made by an individual are exempted from tax.
4. SELLING YOUR PROPERTY

When you sell, you can repatriate all of the funds immediately used to the value of the purchase, including any amounts spent on improvements and/or additions to the property and paid for in properly imported foreign currency.

5. STAMP DUTY

The purchaser is liable for the payment of Stamp Duty at the rate of €2.56 per thousand up to the value of €170,860 and thereafter at the rate of €3.41 per thousand.

This duty should be paid within 15 days of the signing of the contract.

6MORTGAGE FEES

There is a registration fee of 1% of the amount secured, plus any relevant stamps. Local banks grant loans in the local currency as well as a foreign currency of your choice. Alternatively you can apply for a loan from your own private bank abroad.
ON - GOING COSTS

PROPERTY OWNER COSTS (Approximate average for a 2-bed property, full usage)

  1. Electricity: €250, every 2 months.
  2. Water: €50 every 4 months.
  3. Sewerage: €100 per annum.
  4. Common expenses for apartments: €350 per annum.
  5. Garbage tax: €150 per annum

(Prices vary depending on location and type of property)

2 Comments

  1. James Thomas

    Are let to buy schemes available in Cyprus?

    • Theo Sour

      Dear James

      is available in Cyprus but not many developers do it

      What is your plan exactly ?

      Best regards

      Stelios Stylianou

      Director

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