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How to buy property in Cyprus

Legal Safeguards to buy property in Cyprus

The Cyprus legal system safeguards the buyer’s rights in many ways. For the buyer’s protection, once the contract of sale has been signed and the first agreement amount % has be paid (Usually is 40% from agreement price), the Land Registry offices in Cyprus offers a simple and effective legal instrument called the Specific Performance. With this procedure the buyers protect the ownership rights until the title deed to be issue from Land Registry Office and to be transferred to their names. Usually for the Land Registry Office to issue the title deeds, the procedure is taken up to 2 years from delivery day of the property. After deposit the contract of sale in the Land Registry Office no one cannot withdrawn the contract of sale except from the buyer (New owner) and therefore, the property cannot be rented, sold, transferred or mortgaged to someone else. The only person that can change this status is the buyer!!!!

Summarizing, after signing, the contract of sale must to be deposit to the Land Registry Office. For the contract of sale to be officially for deposit in the Land Registry office needed a) Signing the contract of sale from both parties (Seller and buyer) b) Stamp Duty. Our office Andreas Efthimiou Real Estates Agents Ltd offers step by step the procedure to our clients.

STAMP DUTY

Stamp duty is one time paid and is always responsibility of the buyer to pay the stamp duty which levied on the purchase of property in Cyprus. The rates are dependent on the contract of sale purchase price and the payment is due and must be paid within 30 days of signing the contract of sale. The amount is always payable to the Cyprus tax authorities.

Purchase Price in Euro       Stamp Duty in %
Up to €5,000       0 %
From €5,001 to €170,000       0.15 %
Over €170,001       0.20 %

Please note, by the Cyprus law the maximum Stamp Duty amount is €20,000.

TRANSFER FEES - For resale properties in Cyprus.

Please note: No transfer fees on new properties with V.A.T

The buyer will be liable to pay the bellow transfer fees to the Land registry Office for the property acquired, when this is registered in his/her or company name at the Land Registry Office. The transfer fees are charged, on the property market value at the year which is writing on the contract of sale. Sometimes the Land Registry Office they estimate on different higher price the properties if the property value (The day of signing the contract of sale) is lower than the value of the estimate valuation of the real estate market at the day of signed.

Property Value in Euro       %
Up to €85,000       3%
from €85,001 to €170,000       5%
Over €170,000       8%

The rates above apply per person. If the property has more than one name (Owners) the transfer fees are estimated with the price divided by two.

Important Note regarding a new law of Cyprus: The legislation provides for an exemption of 50% of the Land Registry transfer fees.

CYPRUS IMMOVABLE PROPERTY TAX

Immovable Property Tax is €0 as from 1 January 2017 until today.

CAPITAL GAINS TAX - Selling Property in Cyprus

Capital Gains Tax on a selling is approximately 20% on gains arising from the disposal of property by each individual person. The amount of € 17,000 is tax-free only for the first sale of real estate in Cyprus.

LOCAL AUTHORITY TAX

Property taxes are payable annually for the property on the municipality which is located the property. The tax covers the cost of garbage disposal, street lighting, etc. Approximately the cost is €190 a year!

COMMUNAL EXPENSES (Maintenance)

Are payable if the property is in a complex or is an apartment on a building with common expenses with lift, cleaning of the building, lights etc. If the Cyprus property is a private property such as home, villa and is not in a real estate complex the owner doesn't pay anything.

Communal expenses (Maintenance) cover the cost of cleaning and maintaining the project or the building communal areas such as gardens, swimming pool, management fees and repairs. These are payable at fixed amount intervals throughout the year and vary from development to development and from building to building.