Living in Cyprus means sharing the south, and accessible north sides, of the island with more than 1.2 million people, most of whom speak English.
When selling property, the seller must pay 20% tax on profit (the difference between the purchase price and the sale price).
Buying property in Cyprus is a fairly simple and reliable procedure. The procedure can be complete within reasonable timeframes after signing the purchase agreement.
Living in Cyprus means sharing the south, and accessible north sides, of the island with more than 1.2 million people, most of whom speak English. Cyprus is a relatively small island with an area of 9,250 km, within this territory you can find many parks, beaches golf courses, museums, monuments, clubs, bars, restaurants, spas, whatever you want. Who wouldn’t love more than 300 days of sun a year in a welcoming environment. Cyprus property is the adventure of meeting new people every season as tourism pours into the country.
It is the freedom of travelling anywhere in the world, flexibility of travel. Moreover, buying Cyprus property, above all, is a wise strategic geographical investment into the future. Real estate in Cyprus is on a steady rise, additionally to that by 2020 the island will begin gas exports to Europe and by then real estate will be more expensive.
Property Price
First €85.000
€85.001 to €170.000
Over €170.000
Rate
3%
5%
8%
A transfer of the property which is subject to VAT is exempt from the above transfer fees.
A transfer of the property which is not subject to VAT will be eligible for a 50% exemption from the above transfer fees.
When selling property, the seller must pay 20% tax on profit (the difference between the purchase price and the sale price). In some cases, a decrease in tax calculation may be possible, if the seller takes into account – loan servicing, the cost for renovation etc. Subject to certain conditions, properties acquired between July 16, 2015 and December 31, 2016 inclusive, are exempt from capital gains tax on future sales.
When buying new real estate from a developer, the buyer must pay 19% VAT. The same rate is applicable to undeveloped land, on which construction is planned.
In transactions involving the purchase of new property from first –time buyers the buyers have the right to apply for a reduced rate of VAT of 5% rather than 19%. The preferential rate of VAT applies to the first 200 sq. m of an object (area) the remaining area is subject to VAT at a rate of 19%. Property must be used for the purpose of permanent residence in Cyprus for a minimum of 10 years.
It is calculated on the basis of the contract selling price.
Value
First €5.000
€5.001 to €170.000
Over €170.000
Rate
0%
0.15%
0.2%
Once a year, property owners must pay the so-called municipal fee (garbage collection, repair and maintenance of streets, etc.). Each municipality calculates their fees separately based on the value of the facility in 2013.
Buying property in Cyprus is a fairly simple and reliable procedure. The procedure can be complete within reasonable timeframes after signing the purchase agreement. Furthermore, for citizens of the European Union it is faster and without restriction.
Citizens from countries that are not part of the European Union need permission from the Cyprus Council of Ministers. Such permits can be obtained personally or with the support of our company. Upon receiving this permission, it is possible to acquire property or a plot of land with a maximum area of up to 4041 sq.m.
In Cyprus, there are two statuses for acquired property: freehold and lease-hold. In the case of a freehold purchase, you become a lifetime owner with the right to transfer real-estate by inheritance. In the case of a lease-hold purchase, you become the owner of real estate, but not the land on which this property is located; in other words, you lease the land for the period indicated in the contract.
