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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.
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Value of Property CY Pounds (CYP) £
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Transfer fee rate (per hundred)
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| Up to £50.000 |
3
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| From £50.000 - £100.000 |
5
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| Over £100.000 |
8
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| 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. |
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Value of Property
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Annual Property Tax
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| Up to £100.000 |
exempt
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| £100.001 to £250.000 |
2,0
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| £250.001 to £500.000 |
3,0
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| Over £500.000 |
3,5
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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.
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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 CYP£10,000 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.
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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.
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Estate Duty
There is no estate duty on the sale of
properties purchased with foreign currency. |
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