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Property related taxes in Cyprus

  1. Tax of registration of the ownership or transfer fee (one-off payment)

This fee shall be paid to the state (the Land Department) when the title deeds are transferred into the purchaser’s name. The transfer takes place when all settlements have been made between the seller and the buyer and the municipality has issued the approval for transferring title deeds for all properties in the building.

Tax schedule:

Property values in euro

Fee

Up to 85,430

3%

From 85,430 to 170,860

5%

Over 170,860

8%

 

For example, if a client purchases a property worth € 145,231, for the first € 85,430 tax will be € 2,562 (3%) for the next € 59,801 – € 2,990 (5%). As a result, the amount of tax will be € 5,552 (3.82%).

If two or more people are the owners of a property, the amount of the tax is reduced because the taxable value per each owner is proportionally less, hence the tax becomes lower.

The Cyprus government has introduced an incentive for property buyers according to which all new (sold for the first time) properties qualify for the full exemption or 50% reduction of the transfer fee. The incentive scheme is as follows:

  • New properties, which are subject to VAT – no transfer fee
  • New properties, which are not subject to VAT – 50% reduction of the transfer fee

  1. Stamp duty (one-off payment)

A Stamp duty has to be paid when buying property in Cyprus. If the value of the property is less than € 171,000, the fee is 0.15%. If the value of the property exceeds this amount, the fee is 0.2%.

For clarity, let's consider an example.

A property is worth € 256,290, then the stamp duty will be 170,860 x 0.15% = € 256. The next € 85,430 x 0.2% = € 171. As a result, the amount of the tax will be € 427.

Stamp duty is to be paid within one month from the date of signing the contract of sale.

  1. Immovable property tax (annual property tax)

After receiving the title deeds for the property, the purchaser becomes the legal owner of the property. From that moment on, the purchaser has to pay the annual property tax. The size of the tax depends on the value of the property.

The base for the calculation is the value of the property as if it was sold in January 1, 1980. On average, it is 1/10 of the current market prices.

The calculation of the property tax:

Property value in euro (on 1st of January 1980)

Annual property tax, %

0 – 40 000

0,6 (minimum – 75 euro)

40 000 – 120 000

0,8

120 000 – 170 000

0,9

170 000 – 300 000

1,1

300 000 – 500 000

1,3

500 000 – 800 000

1,5

800 000 – 3 000 000

1,7

More than 3 000 000

1,9

 

  1. Tax privileges

Personal effects, household goods and furniture can be free of import duty, if they are for personal use. There is also an allowance for a duty free car, and retired couples enjoy the additional concession of two duty free cars.

Pensioners, who become residents in Cyprus, are taxed on their pension from abroad at the rate of 5% for amount exceeding € 3,417 annually. As long as they become tax residents in Cyprus, they will be taxed on future income (dividends and interest). Of course they will not be taxed on capital brought into Cyprus, which was created from past income.

Their total annual income up to € 19,500 is tax exempt, as for all Cypriots.

Additionally, Cyprus has Double taxation treaties with many European and other countries. The main purpose of these treaties is the avoidance of double taxation of income earned in any of these countries: Austria, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Sweden, UK, USA and Yugoslavia.

  1. VAT

The usual VAT rate is 19%.

But if:

  • the buyer has no other property in Cyprus or has never enjoyed the VAT refund in the past
  • and the property that he/she is buying is new
  • and it will be used as the primary residence in Cyprus

Than the first 200 sq.m. of the areas of the property is subject to the reduced VAT rate of 5%. The VAT reduction is only applicable to properties smaller than 275 sq.m.

  1. The local council tax

The local council property tax is paid annually. The tax collected by the municipality for garbage collection, street lighting and other services. It depends on the size of the property, approximately 200 euros.

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Налоги и пошлины

ID: 6399
Сбор за перевод права собственности (единоразовый)
1445.7 € (1.57 %) один владелец
1380 € (1.50 %) два владельца
Гербовый сбор (единоразовый)
138 € (0.15%)
Налог на недвижимое имущество (ежегодный)
75 € (0.08 %)
Муниципальный налог (ежегодный)
250 €/год (0.27 %)
Стоимость юридического сопровождения (единоразовая)
736 € (0.8 %) — 920 € (1 %)

Более подробную информацию о налогах и сборах при покупке недвижимости на Кипре вы можете получить на нашей странице.

Ольга
Менеджер-консультант
+(357) 25 315 318

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