Pafos :: Cyprus

Cyprus Property Taxes
Real Estate Transfer Tax-Fees
Real Estate Transfer Tax-Fees are necessary in order to transfer freehold ownership to the names of the purchaser. This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been completed. The Transferee is responsible for the tax payment. The rates are on a graduated scale.
Value of Property CY Pounds (CYP)	Transfer fee rate (per hundred)
Up to 50.000	3
From 50.000 - 100.000	5
Over 100.000	8

Transfer of ownership takes place by a simple process of registration at the Land Registry Office and the issuing of a title deed after completion and delivery. This can be done either by you personally or by a Power of Attorney to your Solicitor. A prerequisite for registration, in the case of aliens, is evidence that the property has been paid for with foreign exchange and approval by the Council of Ministers of purchaser’s application to buy a property Cyprus. However, before the registration of the completed property, the purchase should pay the transfer fees to the Land Registry office.

Stamp Duty
The purchaser is liable for the payment of stamp duty at the rate of CYP 1.50 per thousand up to the value of CYP 100,000. Thereafter the rate is CYP 2.00 per thousand. This should be paid within 30 days of signing the contract.

Immovable Property Tax
With regard to the purchase of immovable property in Cyprus, Central Bank approval is required on the transfer of property to aliens. Such approval is granted if it can be proved by the applicant that funds for the purchase were imported from abroad. Note that without the approval, on a subsequent sale, permission to remit the proceeds out of Cyprus will not be allowed. The annual immovable property ownership tax is based upon the value of the property. Every registered owner whose property exceeds CYP 100,000 must submit a declaration of immovable property and pay the respective tax every year before 30 September.

Value of Property	Annual Property Tax
Up to 100.000	exempt
100.001 to 250.000	2,0
250.001 to 500.000	3,0
Over 500.000	3,5

Local Authority Taxes and Rates
A rough guide could be approximately CYP 50 –150 per year depending on the size of your property. This tax is for refuse collection, street lighting, sewerage, etc. The basic utilities, electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.

Capital Gains Tax
On disposal of a property, capital gains tax will be payable at the rate of 20% on the gain with the first CYP10,000 being exempt for each person. On top of this allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Gains room the disposal of a dwelling house are exempt up to CYP 50,000 in total if the owner resides in it continuously for at least five year prior to disposal.

Income Tax
There are two groups of taxed income, as follows: Those that have income from other sources other than pension, are entitled to pay 5% income tax, exempt the first CYP 2,000. Those that have income from their pensions are entitled to pay 5% income tax, exempt the first CYP 6,000.

Estate Duty
There is no estate duty on the sale of properties purchased with foreign currency.