Property Taxes
Stamp Duty
Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£100,000. The purchase contract must be stamped within 30 days of its dated signature; otherwise a fine will be imposed.
Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£100,000. The purchase contract must be stamped within 30 days of its dated signature; otherwise a fine will be imposed.
| Example, total cost of property as per contract is 250,000 CYP | |
| First CYP 100,000 | 100.000 x 1.5=150 |
| Next CYP 150,000 | 150.000 x 2=300 |
| CYP 450 | |
Immovable Property Tax
According to the Cyprus legislation as from 1 January 1980, all property acquired by foreigners in Cyprus are subject to immovable property tax. The annual immovable property ownership tax for property of value of more then 100.000 Cyprus pounds is based upon the value of the property.
According to the Cyprus legislation as from 1 January 1980, all property acquired by foreigners in Cyprus are subject to immovable property tax. The annual immovable property ownership tax for property of value of more then 100.000 Cyprus pounds is based upon the value of the property.
Certain immovable properties are exempt.
| Value of property CY Pounds (CYP) | Annual Property tax (rate per thousand %) |
| Up to 100,000 | exempt |
| 100,000 - 250,000 | 2.0 |
| 250,000 - 500,000 | 3.0 |
| over 500,000 | 3.5 |
Capital Gains Tax
Should the purchaser decide to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the time of the re sale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first CY£10,000 are tax-exempt.
Should the purchaser decide to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the time of the re sale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first CY£10,000 are tax-exempt.
Tax Advantages
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income.
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income.
Additionally, Cyprus has Double Taxation treaties with many European and other countries, safeguarding its residents from paying tax in both countries.
Inheritance Tax
Inheritance tax is not imposed.
Tax Privileges
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.
Acquiring The Title Deed
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the Cyprus Land Registry Office, either by the buyer or by appointed third party with a Power of Attorney. In the case of a non-Cypriot, evidence of payment for the property with foreign exchange must be provided as a prerequisite for registration. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within sixty days from the contract date. This protects the buyer's rights to the property and provides additional safeguards. In case if the contact is not registered, the vendors can resell or mortgage the property as there some cases of that kind happening in Cyprus. When issued, the title deed will be register in the name of the buyer, and will be recorded in the Government archives. The Government archives are confidential and will not be published or made accessible under any circumstances. At any time after the purchase, the buyer may sell or dispose of the property at will, provided that he/she has a valid contract.
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the Cyprus Land Registry Office, either by the buyer or by appointed third party with a Power of Attorney. In the case of a non-Cypriot, evidence of payment for the property with foreign exchange must be provided as a prerequisite for registration. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within sixty days from the contract date. This protects the buyer's rights to the property and provides additional safeguards. In case if the contact is not registered, the vendors can resell or mortgage the property as there some cases of that kind happening in Cyprus. When issued, the title deed will be register in the name of the buyer, and will be recorded in the Government archives. The Government archives are confidential and will not be published or made accessible under any circumstances. At any time after the purchase, the buyer may sell or dispose of the property at will, provided that he/she has a valid contract.
The transfer of title can be affected once the Council of Ministers' permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds. Upon transfer of the property and registration in the purchaser's name, the District Land Registry Office will charge Transfer Fees, which are based on the market value of the property at the time of purchase, and are calculated as follows:
| Value up to (CYP £) | Transfer fee rate (%) |
| - 50,000 | 3% |
| 50,000 - 100,000 | 5% |
| over 100,000 | 8% |
| Example, total cost of property as per contract is 160,000 CYP | |
| First CYP 50,000 | 3% = CYP 1,500 |
| Next CYP 50,000 | 5% = CYP 2,500 |
| Next CYP 60,000 | 8% = CYP 4,800 |
| CYP 8.800 | |
Volex