Cyprus Real Estate Transfer Fees

Real Estate Transfer Fees are imposed by the Land Registry Office in order to transfer FREEHOLD ownership to the name of the Purchaser. The transfer fees are due for payment when the transfer of the Title Deed in the name of the Purchaser takes place. The Purchaser is solely responsible for the payment of the Transfer Fees. The rates are on a graduated scale.

Value of Property (€)

Transfer Fee Rate (%)

up to 85,000

3

from 85,001 to 170,000

5

from 170,001 and over

8

If the property is in joint names e.g. a couple - husband and wife or two individuals, then the purchase value is divided into two parts which results in reduced Transfer Fees.

An amendment regarding the reduction of Immovable Property Transfer Fees has been approved by the Cyprus House of Representatives. This new measure which is currently in effect will remain in force until the end of 2016.  It applies only to the first sale of a property and it abolishes or reduces Transfer Fees provided that the Contract of Sale has been deposited with the Land Registry within the month period set by the law.

More specifically:
•    No Transfer Fees will be payable for properties which are subject to VAT.
•    Transfer Fees are reduced by 50% for those who do not pay VAT on their purchase. 

The following example clearly illustrates this:

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

For property in the name of one person

Up to €85,000

@ 3%

=  €2,550

from €85,001 to €170,000

@ 5%

=  €4,250

The remaining €30,000

@ 8%

=  €2,400

Total fees payable

=  €9,200

 

For property purchased for €200,000 in the names of two persons, the fees payable are €6,600.

For property in the names of two persons

First €85,000

@ 3%

=  €2,550 (Husband’s share)

Second €85,000

@ 3%

=  €2,550 (Wife’s share)

The remainder of First €15,000

@ 5%

=  €750 (Husband’s share)

The remainder of Second €15,000

@ 5%

=  €750 (Husband’s share)

Total Fees payable

=  €6,600

 

Immovable Property Tax

From 1st January 1980, Annual Immovable Property Tax is imposed on the market value of the property and is payable on 30th September every year. It applies to the Immovable Property owned by the taxpayer/property owner on 1st January each year. Property owners whose property has a total value of €12,500 or less (using values from 1st January 1980) are exempt from Immovable Property Tax.

Market Value of Property (01.01.1980) (€)

Annual Property Tax (%)

up to 40,000

0,6

40,001 to 120,000

0,8

120,001 to 170,000

0.9

170,001 to 300,000

1,1

300,001 to 500,000

1,3

500,001 to 800,000

1,5

800,001 to 3,000,000

1,7

Over 3,000,000

1,9

 

Capital Gains Tax

On any financial gains from disposal/sale of Immovable Property situated in Cyprus, Capital Gains Tax will be imposed at the rate of 20% with the first €17,086 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1st January 1980, the gains are the difference between the sales proceeds and the market value of the property as of 1st January 1980.

The Seller is entitled to a further allowance regarding the Transfer Fees paid, Inflation Rate per year and the cost of any additions made to the house.

Gains from the disposal/sale of a private residence/dwelling house are exempt up to €85,430 in total if the owner resides in it continuously for at least five years prior to disposal/sale.

Stamp Duty on Contracts

The Purchaser is liable for the payment of Stamp Duty on the purchase price of the property at the following rates:

First €5,000

 

€0.00

€5,001 to €170,000

 

0.15%

over €170,001

 

0.20%

This should be paid within 30 days from the signing of the Contract of Sale.

Estate Duty / Inheritance Tax

Estate Duty / Inheritance Tax have been abolished from 1st January 2000 (Statute No. 78(1)/2000).

Local Authority Taxes & Rates

A rough guide could be approximately €85 - €260 per year depending on the size of your property.

This tax is for refuse collection, street lighting, sewerage etc.

The basic utilities, electricity, water and telephone charges are payable individually in accordance with the consumption and based on a meter reading.

Communal Expenses

Communal Expenses cover an owner’s share towards the cost of cleaning and maintaining a property development’s communal areas, gardens, swimming pool, management fees and repairs. These are payable at fixed intervals throughout the year and vary from development to development and from property to property.

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