Transfer Fees

Abolition of Transfer Fees for properties purchased until December 31st 2014.
Take advantage of the abolition of transfer fees for new properties purchased until December 31st 2014 and save thousands on the purchase of your new luxury home in Cyprus.

Abolition of

Transfer fees

 

After the measure that reduced the VAT rate to 5% for purchasing a permanent residence entered into force on October 1st 2011, a new amendment regarding the property transfer tax has been approved by the House of Representatives, published on December 2nd 2011, which will remain in force until December 31st 2014.

Upon transfer of the property and registration in the purchaser’s name, the District Land Registry Office will charge transfer fees. These are based on the market value of the property at the time of purchase and are calculated as follows:

Value:

  • Up to €85.430,07….. Rate 3%
  • €85.431,08 – €170.860,14 ….. Rate 5%
  • Over €170.860,15 …..Rate 8%

Example 1

No transfer fees payable for properties with VAT.
Property Price: €1,500,000
Transfer fee: €113,166
Transfer fee now: €0
Saving: €113,166

Example 2

50% transfer fees payable for properties without VAT.
Property Price: €400,000
Transfer fee: €25,166
Transfer fee now: €0
Saving: €12,583

 

Cyprus VAT

Payable on Property

 

Since Cyprus’ accession to the EU in 2004, VAT must be paid when buying a new build property.

In cases where an application for a town permit was filed before the 1st of May 2004, VAT will not be charged.
If the town planning application has been filed after the 1st of May 2004, VAT is charged on the sales price at a rate of 18%. First-time buyers can apply for VAT reimbursement in cases where they paid the full amount of VAT on single properties purchased after the 1st May 2004.

No VAT is charged on the purchase of land.

Important note for the reduction of VAT to 5%

A reduced rate of VAT (5%) has been introduced for properties purchased by permanent residents of Cyprus, provided that the property will be used as the main residence of the purchaser for 10 years (minimum). This is applicable only to contracts of sale which are conducted from October 1st 2011 onwards. The rate will apply for the first 200 m2 of residences of total covered area of up to 275 m2.

Cyprus

Stamp Duty

 

In the case of a sales contract, you, as the purchaser, are liable for the payment of Stamp Duty at the rate of 0.15% on any property with a value of up to €170.860,14. Thereafter the rate becomes 0.20%. Stamp Duty is payable within 30 days of signing of the contract of sale.

Example

Purchase Price: €200.000
1st €170.860,14 at 0,15% = €256.30
Remaining €29.139,86 at 0,20% = €58.28
TOTAL Stamp Duty payable €314.58

Annual Property

Taxes and Fees in Cyprus

 

A. Immovable Property Ownership Tax

As the registered owner of the property, you are liable to an annual Immovable Property Ownership tax calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the year). Immovable Property Tax is payable to the Inland Revenue Department of the Republic of Cyprus.

Rates are as follows:

Value of property

  • Rate Up to €120.000…..0
  • €120.001-€170.000…….0,4%
  • €170.001-€300.000…….0,5%
  • €300.001-€500.000…….0,6%
  • €500.001-€800.000…….0,7%
  • Over €800.001………..0,8%

B. Local Authority Fees

Depending on the size of your property, local authorities charge between €85-€256 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local municipal authority.

C. Municipality Tax

As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1% – 2%. Municipality tax is payable to your local municipal authority.

D. Sewerage Tax

As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3%-3,5%. Sewerage taxes are payable annually to your local sewerage board.