INVEST IN CYPRUS
Buying Property in Cyprus
Permission To Buy In Cyprus
Cypriots and EU citizens can buy as much land or property as they wish, without restriction. Non EU citizens have the right to buy property in absolute ownership, while the offshore companies can buy space for their business or for residence of their foreign employees.
Permission to buy property must be sought from the Council of Ministers by written application, submitted by the purchaser after the agreement is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.
Contract of Sale
Payment Terms
Filing the contract of sale to the land registry department
Stamp Duty Cyprus
In the case of a sales contract, you, as the purchaser, are liable for the payment of Stamp Duty at the rate of:
| Value | Rate |
|---|---|
| The first €5,000 | 0 |
| €5,001 – €170,000 | 0.15% |
| More than €170,000 | 0.2% |
Cyprus Vat Payable on Property
Since Cyprus’ EU accession in 2004, a standard VAT rate of 19% is required to be paid when buying a new property.
However, following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.
For the reduced rate to be in effect, certain terms and conditions must be met:
- The property must be used as the primary and permanent residence of the applicant (for the next ten years).
- The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
- The applicant must be an individual, over 18 years old, thus legal entities are excluded.
The reduced VAT rate of 5% is applied on the first 200 square meters (building coefficient) of the property as per the architectural plans submitted to the Authorities. On the remaining square meters, the standard rate of 19% is imposed.
Annual Property Taxes And Fees in Cyprus
Title Deeds Cyprus
Property Transfer Fees
The fees charged by the Department of Land and Surveys for the transfer of immovable property are:
| Property Price | Rate | Fee | Accumulated Fee |
|---|---|---|---|
| First €85,000 | 3% | €2,550 | €2,550 |
| €85,001 – €170,000 | 5% | €4,250 | €6,800 |
| Over €170,000 | 8% |
Properties subject to VAT are exempt from the above transfer fees. Properties not subject to VAT are eligible for a 50% exemption from the above transfer fees.
Capital Gains Tax
Capital Gains Tax at the rate of 20% is imposed on the profit gained from the disposal of a property.
