Stamp Duties for Purchase Agreements
An individual interested in buying property in Cyprus is required to pay for the stamp duties that need to be applied on the purchase agreement and related documents. These are paid to the Cyprus Tax Department as follows:
The first €5,000 are free and stamp duty exempt;
From €5,001 - €170,000 of the purchase price stamp duties are 0.15%;
Any amounts over €170,000 are calculated at 0.2%.
In order to legally own property in Cyprus the title deed needs to be registered to the buyer. Following the title registration the Land Registry will estimate the market value of the property being purchased and charge the buyer Transfer Fees as follows:
There is currently a 50% discount on the above rates and transfer fees are not chargeable at all if VAT has been paid.
Value Added Tax (VAT)
Value Added Tax (VAT) at the rate of 19% applies to the purchase price of new properties. A 5% discount applies to a property that will be used as a permanent and primary residence of the applicant which applies under the following conditions:
The submission of an application with the relevant supporting documents;
The property must be used as the main primary and permanent place of residence; and
The applicant does not possess any other property which is used as the primary residence in the Republic of Cyprus.
Immovable Property Tax
Immovable property tax has been abolished as from 1 January 2017.
Additional Expenses for Buyers
The lodging of a power of attorney or a contract of sale €50;
The lodging of an assignment contract (if the property is a resale and new title deeds have not yet been issued): 0.5% of the purchase price with a maximum of €3,000.
Expenses for property owners
Taxes and Rates
Taxes roughly range from about €90 to €300 annually, depending on the size of the property. These usually entail sewage, refuse collection, street lighting and other local expenses. Utility rates depend on usage rate and the costs are based on meter readings. All electricity bills are issued by the Electricity Authority of Cyprus (Α.Η.Κ.) and the water bills are usually issued by the Municipality or Village Council.
The cost for property insurance varies depending on size and condition of the property, and of course the insurance company one chooses.