Legal Issues

Taxes and Fees

The transfer of title can be effected once the Council of Ministers' permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds. Upon transfer of the property and registration in the purchaser's name, the District Land Registry Office will charge Transfer Fees, which are based on the market value of the property at the time of purchase, and are calculated as follows:
Value up to
- CY£ 50.000 3%
CY£50.001 - CY£100.000 5%
CY£100.001 - and over 8%

Stamp Duty

Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£1,000,000. The purchase contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.

Immovable Property Tax, Services Tax

The annual immovable property ownership tax imposed by the government is approximately CY£60-120 per year, depending on the value of the property. The Municipal authorities also levy an annual property tax at the rate of about CY£20-30 per year. Other authorities may also impose a sewage tax of CY£20-40, depending on the value of the property.

Capital Gains Tax

Should the purchaser decide to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the time of the re sale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first CY£10,000 are tax-exempt.

Inheritance Tax

Inheritance tax is not imposed.

Tax Privileges

Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.

Tax Advantages

Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income. Additionally, Cyprus has Double Taxation treaties with many European and other countries, safeguarding its residents from paying tax in both countries.

NOTE: The above information should be only used as a guideline and is likely to differ for each individual case. For more in-depth information, or for specific questions, please contact us via email directors@africanosproperties.com, or Telephone (00357) 24828161, or Fax (00357) 24828110.