Stamp Duty: Stamp duty is levied on property purchase contracts at rates based on a sliding scale and is payable within 30 days of signing a contract.
Table 1. Stamp duty
0.15% on the first €170.860,14
0.2% on the remainder
Application to the Council of Ministers: This application costs around €xxx and must be done by all non-EU nationals or EU nationals that are not residents of Cyprus (the latter is valid only until 2009 after which all EU nationals will be treated exactly the same as Cypriot nationals irrespective of residential status).
Mortgage Fee: If there is a mortgage, a one per cent on the amount borrowed must be paid as registration fee.
Value Added Tax: VAT has been imposed on the sale of all new property at the rate of 15%. However, a rebate scheme has been introduced enabling certain categories of buyers to claim a refund on certain types of properties.
Property transfer fees: These are paid to the District’s Land Office every time a property changes ownership. Once paid the title deed is issued registering the buyer as the new owner. The fees are based on a sliding scale according to the property’s market value (see table below) at the time of signing of the contracts. However, if the Contract of Sale was not deposited at the District Lands’ Office (see Buyer protection), the Property Transfer Fees will be calculated on the assessed value of the property on the day the transfer takes place.
Table 2. Property transfer fees
3% on the first €85,430
5% on the next €85,430
8% on the remainder
The following taxes are liable when owning property in Cyprus:
Immovable property tax: This tax is paid annually, by the property owner to the Inland Revenue department. This is regardless of whether the owner is a resident in Cyprus or not. The tax is calculated based on the 1980 market value of the total property owned.
Table 3. Immovable property annual tax
0.00% if 1980 market value is up to €170.860,14
0.25% if 1980 market value is from €170.860,14 up to €427.150,36
0.35% if 1980 market value is from €427.150,36 up to €854.300,72
0.40% if 1980 market value over €854.300,72
The following taxes are liable when selling property in Cyprus:
Capital gains tax: This tax is levied when a property is sold and is set at 20%. Sellers may claim deductions, exemptions and allowances depending on the circumstances.