Cyprus is an island drenched in sun with easy access to destinations in Europe, two significant plus's when considering buying property in Cyprus. The feeling of security prevails since in a world of ever-increasing violence, the crime level in Cyprus is remarkably low as to be practically non-existent. Cyprus, which is the third largest island in the Mediterranean, is not over commercialized and its spectacular scenery and enviable climate makes it a popular place to visit and live. Finally Cyprus's cost of living is very affordable and in fact is one of the chea... [read more]

The process of purchasing property in Cyprus by non-Cypriots is relatively simple compared to many other countries. This is because the Land Registry system (which was established in 1875 based originally in British standards) with its updates throughout the years is one of the most sophisticated in the world.   ... [read more]

Under current legislation, any Cypriot as well as E.U citizen who have their permanent residence in Cyprus are allowed to register immovable property in their names without any restrictions. The residential status is ascertained by the District Offices when a person resides in Cyprus for a total period of 183 days per year or more. Since Cyprus joined the European Union (as of May 2004) most of the procedural restrictions upon buying property have been lifted for EU citizens. All the restrictions will eventually be lifted after April 2009. Until then EU citizens who ar... [read more]

When non - Cypriot purchasers decide to buy immovable property in Cyprus they have the same rights as the Cypriot citizens. The contract of sale signed between the Vendor and the Purchaser binds both parties to perform according to their respective obligations. On the signing of the contract the Purchaser is liable to stamp duty payment (see below) and then, it is advisable, the contract of sale to be registered, within 2 months from the contract date, at the District Land and Surveys Department of the region where the property is situated. This is because it provides add... [read more]

On the signing of the contract of sale the purchaser is liable to pay a one off stamp duty depending on the contractual purchase price and payment is due within 30 days of signing otherwise a fine will be imposed. PROPERTY VALUE (€) STAMP DUTY (%) Up to €170.860,14 0.15% Over €170.860,14 0.20% Without fixed amount €34.17 ... [read more]

Once the Council of Minister's permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds then the transfer of title deed can be effected. On transfer of the title deed of the FREEHOLD property (which may be issued 3 - 5 years after completion of the property) and registration in the purchaser's name the District Land and Surveys Department will charge transfer fees, which are based on the market value of the immovable property at the time of purchase and which must be paid "once only" by the Purchaser. The rates are on a... [read more]

Inheritance tax has been abolished and is no longer imposed in Cyprus. ... [read more]

Since Cyprus accession to the E.U. (on the 01/05/04) VAT on properties was introduced. In properties where the town planning application was filed before 01/05/04 these are exempt of V.A.T. ... [read more]

Should the Purchaser decide to sell the property capital gains tax will be payable at the rate of 20% on the gain. However, the first CYP10, 000 of gain are tax-exempt. If the property is jointly owned by a couple then CYP20, 000 of gain are tax-exempt. In case where the property has been used by the Vendor as residence for at least 5 years prior to the sale then it is tax-exempt up to CYP50, 000. ... [read more]

Owners of immovable properties are subject to annual Immovable Property Tax which is based on the market value of their property as assessed on 1st January 1980. The rate of taxation is as follows: VALUE OF PROPERTY (€) ANNUAL PROPERTY TAX (%) Up to 170.860,14 Exempt From 170.860,15 to 427.150,36 2.5 From 427.150,37 to 854.300,72 3.5 Over 854.300,73 4.0 The above stated rates are applicable only after separate title deeds are transferred into the names of the Purchaser... [read more]