Translation

Steps for Purchasing Property in Cyprus

  • Property Inspection
  • Deal
  • Contract of Sale
  • Stamp Duty
  • Registration of the Contract
  • Issuance of Title Deed
  • Transfer Fees
  • Permit from the District Council
  • Local Authority Taxes
  • Capital Gains Tax

 

Property Inspection

The sales executive accompany the client to the company’s properties giving relevant information and answering customer’s queries.

 

Deal

When the client finalized his decision in which property to buy a reservation fee is paid and the property is removed from the market.

 

Contract of Sale

  • Each contract is based on the specific circumstances of each client and the purchase is analysed in details
  • The contacts are drafted always securing the interest of the purchaser
  • The vital terms of the contract includes among others:
  • The right to sell prior to the issuance of a separate title deed
  • The right to assign the third parties
  • Guarantee for defective construction (for off-plan properties)
  • Payment terms
  • Delivery date
  • Penalty clause for late delivery
  • Transfer of the title deeds

 

Stamp Duty

The stamp duty is levied when purchasing a property in Cyprus and it is payable within 30 days of signing the Contract of Sale. The rates are on a graduated scale based on the contractual purchase price:

  • Up to €5,000 is zero
  • 0,15% from €5,001 to €170,000
  • 0,2%  from €170,001 and above

(Note: Maximum Duty €20,000)

Example: on property purchased for €250,000 the stamp duty will be €

First                                €5,000 @ 0%         = nil

Next                               €164,999 @ 0,15% = €247.5

Remaining                    €85,001 @ 0,2%   = €170

Total                                                             = €417.5

 

Registration of Contract

Once the contract is stamped, it is lodged at the appropriate District Land Registry Office.

 

Issuance of a Title Deed

The issuance of a separate Title Deed for the Property and the transfer of ownership from the Seller to the Purchaser is carried out by the District Land Registry Office.

 

Transfer Fees

Cyprus property transfer tax-fees are paid to the Cyprus Government when transferring the property’s Title Deed from the Seller to the name of the new Purchaser

The purchaser is responsible for the transfer fee payment. The rates are on a graduated scale as below:

  • 3% up to €85,000
  • 5% from €85,001 to €170,000
  • 8% over €170,001

The above rates apply per person. If the property is in joint names e.g. of a couple (husband and wife) or two individuals, then the purchase value is divided into two parts, which results in reduced transfer fees.

The following example illustrates this:

For a property purchased for €200,000 in one name, the fees payable are €9,165

First                                €85,000 @ 3% = €2.550

Next                               €84,999 @ 5% = €4,250

Remaining                    €30,001 @ 8% = €2,400

Total fees payable                               = €9,200

For a property purchased for €120,000 in the names of two persons, the fees payable are €3,600

The owners house price = €200,000/2 = €100,000 each

First                                €85,000 @ 3% = € 2,550 x 2 = €5,100

Remaining                    €15,000 @ 3% = €450 x 2      = €900

Total fees payable                                                     = €6,000

 

Permit to Own Immovable Property in Cyprus

Non- EU Nationals have a right to purchase:

  • Apartment or House
  • House or a Plot, no exceeding 4,012.50 sq. meters
  • Plot of Land for the purpose of House constructions, not exceeding 4,012.50 sq. meters

 

Each registered owner is liable for paying an annual Immovable Property Tax based on the market value of the property as at 1st January 2013, as follows:

6‰        up to €40,000

8‰        from €40,001 to €120,000

9‰        from €120,001 to €170,000

11‰      from €170,001 to €300,000

13‰      from €300,001 to €500,000

15‰      from €500,001 to €800,000

17‰      from €800,001 to €3,000,000

19‰      over €3,000,0001

 

Local Authority Taxes

Local authorities levy on an annual basis three separate charges (property tax, a health tax and a sewage tax) depending on the size of the property.

 

Sale of Property/ Capital Gains Tax

  • 20%- Capital Gains Tax is paid by individuals
  • Each individual is entitled to €17,086 Tax exemption
  • Subject to certain conditions tax exemption may reach €85,430

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