Fees and Taxes on Cyprus Property Purchase:

  1. Property VAT

From June 8, 2012 the legal provision on a reduced VAT rate of 5% is applied to the acquisition of real estate which is used as the main and only place to live.

According to the law, henceforth when purchasing real estate not only by citizens of the Republic of Cyprus or the EU, but also by citizens of third countries, a preferential VAT rate of 5% shall be charged instead of the current 19% rate.

The preferential VAT rate is provided subject to the following requirements:

  1. Stamp Tax

One-time fee when buying a property in Cyprus. The amount depends on the contractual value of the property and is payable within 30 days from the date of signing the purchase contract.

Purchase price in EURO Stamp tax %
Less than 5 000 0%
5 001 – 170 000 0,15%
Over 170 000 0,20%

Attention: Maximum contribution is 20,000 euros

 

3.Fees for reissuing the title

The buyer must pay a fee for the transfer of the acquired property and its registration in the buyer’s name in the Land Chamber. The fee is charged at the market value of the property as of the acquisition date.

Properties price in euros %
Less than 85 000 3%
85 001 – 170 000 5%
Over 170 000 8%

(The rates above are quoted per person)

Important note:

  1. For buyers whose real estate is not subject to VAT, the fee for renewal (of the title) is reduced by 50%.
  2. Buyers whose real estate is subject to VAT will be completely exempt from payment of the fee for reissuing (of the title).

 

  1. Local taxes and charges

Taxes and fees charged by local authorities are paid annually and may vary depending on the size of the property. These taxes are collected for garbage collection, street lighting, sewerage, etc.

  1. Communal expenses

Communal expenses cover the share of the owner in the cost of cleaning and maintenance of public areas of the residential complex, garden work, pool maintenance, management fees for the residential complex, as well as maintenance costs. These charges are executed at fixed intervals and vary depending on the residential complex and type of real estate.