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Information

About Cyprus

About Cyprus

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.

Tax Guide

Tax Guide

When selling property, the seller must pay 20% tax on profit (the difference between the purchase price and the sale price).

Home Buying Guide

Home Buying Guide

Buying property in Cyprus is a fairly simple and reliable procedure. The procedure can be complete within reasonable timeframes after signing the purchase agreement.

About Cyprus

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.

Area

Area (km2)

Population

Days of Sun

Parks

Golf

Museums

Eng-speakers

Tourism Growth

Tourism 2016

Beaches

Water (May-Oct)

Air (May-Oct)

Tax Guide

Transfer Fees

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.

CAPITAL GAINS TAX

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.

ADDED VALUE TAX

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.

STAMP DUTY

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%

OTHER

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.

Home Buying Guide

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.

Process of Transaction
  • Selecting the property.
  • Depositing 1-2% of the purchased real-estate, in the case of apartments (approximately €2,000-5,000), in the case of private houses (approximately €7,000-10,000).
  • Drafting a purchase agreement (typically 1-5 days).
  • Signing the contract. (Accompanied by the second tranche payment of 30%).
  • Payment of stamp duty to the Tax authorities and the submission of a written application to the Council of Ministers in Cyprus for the approval of purchase. The application is submitted along with a copy of the passport after the signing of the purchase agreement.
  • Submitting the documents to the land registry no later than two months from the date of signing. This procedure is carried out in the interests of the buyer and guarantee protection from the resale of property. Registration confirms the ownership of property before an individual certificate of ownership is issued. The procedure is carried out by the developer.
  • Once (100% of) all payments have been made, the buyer receives the final version of the certificate of ownership from the Cabinet of Ministers, pointing out that all payments are made via bank transfers.
  • The buyer receipt of title and ownership happen after all necessary documents are provided: receipt of payment for the registration fee and property tax, a copy of the permission from the Council of Ministers and a certificate of accounts from the Central Bank – this paperwork ensures that the buyer has paid all registration fees and taxes.
  • To receive the title both parties have to be present. Thereafter the deal is registered at the land registry and taxes about a week. The date of acceptance and transfer of real-estate is indicated in the purchase agreement. Once all these steps have been complete, you become the proud owner of real estate in Cyprus.