WHAT YOU NEED TO KNOW ABOUT BUYING A PROPERTY IN CYPRUS
– Choice of property
– Sign purchases agreement
– Open Bank Account in Cyprus
– Registration of the contract of sale in the Land Registry
– Apply for permission from the Council of Ministers in order to acquire property in Cyprus
– Apply for a Residential Visa
– Transfer of title deed
Stamp duty (one-off payment)
Before the contract is lodged in the land registry office for specific performance purposes, it needs to be stamped by the tax office.
|First €170,860 EURO||0.15%|
|Above €170,860 EURO||0.20%|
Buying a property for EURO 250,000
First 170,860 Euro – 0.15% = 256.29 Euro
Next 79,140 Euro – 0.20% = 158.28 Euro
The stamp duty paid is Total 414.57 Euro
Stamp duty is to be paid within one month from the date of signing the contract of sale.
Tax of registration of the ownership or transfer fee (one-off payment)
Transfer tax fees based on the value of the property, are payable by the buyer and are as follows:
|Property values in Euro||%||Transfer Fee €|
|Up to €85,430||3%||€2 563|
|From €85,431-€170,860||5%||€4 271|
Immovable Property tax
This tax is imposed on immovable property situated in Cyprus.
The base for the calculation is the value of the property as if it was sold in January 1, 1980.
The rates are as follow:
|0 – €40.000||0.6 % (minimum amount €75)|
|40.000 – €120.000||0.8%|
|€120.001 – €170.000||0.9%|
|€170.001 – €300.000||1.1%|
|€300.001 – €500.000||1.3%|
|€500.001 – €800.000||1.5%|
|€800.001 – €3.000.000||1.7%|
|More than €3.000.000||1.9%|
The usual VAT rate is 19%.
Reduced VAT rate is granted when the following requirements are fulfilled:
– the buyer has no other property in Cyprus or has never enjoyed the VAT refund in the past
– the property that he/she is buying is new
– it will be used as the primary residence in Cyprus
– Only applies to individuals (not companies), 18 years of age and over
The reduced rate of 5% applies to the first 200 sq.m. of residential property,
The VAT reduction is only applicable to properties smaller than 275 sq.m.