Cyprus Property Purchase

Here is a short guideline for the legal procedure and costs involved for purchasing Cyprus property.

We only recommend that you purchase property in the South of Cyprus and do not encourage or support purchases in the occupied northern area. According to the Cyprus Law, the purchasers need a written contract of sale, which will be stamped and lodged at the Land Registry Office for Specific Performance purposes. This gives the purchasers the security of a legal charge over the property, which will remain up until the time of the transfer of the Title Deeds to them. The purchasers must lodge the contract of sale at the Land Registry Office within two months from the date of signing.
It is standard procedure for all Non-Cypriots that they must apply to the Ministry of Interior for permission to acquire immovable property in Cyprus,. As soon as the above permissions have been obtained and as soon as a separate Title Deed has been issued by the Land Registry Office, the purchasers will then be in a position to accept the transfer of the Title Deed into their names.

The contract of sale must be duly stamped see details below. The stamp duty should be paid within 30 days of signing of the agreement.

On transfer of the Title Deed into the name of the purchaser, the purchaser of Cyprus property must pay transfer fees to the Land Registry Office.

The transfer fees are at the following rates:
Value of Property Transfer fees
Up to CyŁ 50,000 3%
Between Cyp 50,001 - Cyp 100,000 5%
From Cyp 100,001 and above 8%
However, if the purchase is made in joint names the effective value for the calculation is halved.

Details Recommended for inclusion in the contracts

The following important points should appear in any contract:
1.Description of the property and the details of the Title Deed
2.Purchase price for the property
3.Detailed terms of payment, i.e. at which stage of construction, or specific dates that payment will be due.
4.The completion date and/or the date of delivery of possession of the property to the purchaser

With the signing of the contract the purchaser must pay a reservation amount of approximately Cyp 1,000 – Cyp 2,000 The purchaser will then be expected to pay between 25% and 30% of the purchase price within 30 days from the date of signing of the contract. Once these payments have been made, the way of payment for the balance is usually according to the progress of the construction if buying off plan (i.e. with the completion of the skeleton, then with the completion of the brickwork etc.) If the property is already completed or is a re-sale, the date of payment(s) will be specified.

Cyprus Property Taxes, Fees, Rates for Guidance only

Immovable Property Tax

The annual immovable property tax is calculated on the market value of the property as at 1st January 1980.
Market Value of Property in CYP Annual Property Tax
1. Up to 100,000 Exempt
2. 100,001 to 250,000 2.5%
3. 250,001 to 500,000 3.5%
4. Over 500,000 4%

Capital Gains Tax

On disposal of Cyprus property, capital gains tax will be payable at the rate of 20% on the gain with the first CYP10.000 being exempt for each person. The gains are the difference between the proceeds of the sale and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the proceeds of the sale and the market value of the property as of 1/1/1980.

On top of this allowance, the seller is entitled to a further allowance regarding the transfer eg fees paid, inflation rate per year and the cost of any additions or improvements made to the house.

Gains from the disposing of a dwelling house are exempt up to 50.000 CYP in total if the owner resides in it continuously for at least five years, prior to disposal.

Stamp Duty

On all Cyprus property the purchaser is liable for the payment of stamp duty at the rate of 1.50 CY Pounds per thousand up to the value of 100.000 CY Pounds and thereafter at the rate of 2 CY Pounds per thousand.

This should be paid within 30 days of signing the contract.
For example if the purchase price is CYP 150. 000
First 100,000 is 1.5% = cyp 150
Next cyp 50,000 is 2% = cyp 100
Total = cyp 250

Estate Duty on Cyprus property has been abolished as from the first of January 2000

Local Authority Taxes & Rates for Cyprus property are as a rough guide approximately CYP 50 -150 per year depending on the size and location of your property. This tax is for refuse collection, street lighting, street cleaning, sewerage, etc.
Water supply is metered and charged according to usage. Approx 10 cyp per month for 2/3 bedroom apartment
Electricity is approx 20 cyp per month for 2/3 bedroom apartment.
Cylinder gas is available for cooking and heating approx 5 cyp

Disclaimer: All of these guidelines are presented in a general form and as each individuals circumstances different no responsibility is taken for the content when applied to any specific individual(s)