Acquisition
Under the Immovable Property Acquisition Law, non-Cypriots, Companies and trusts are entitled to buy freehold immovable properties, subject to prior permission by the Council of Ministers. This must be submitted in writing by the non-Cypriot buyer after the Contract of Sale is signed. The procedure is merely a formality, and permission is normally granted more or less as a matter of course to all bona fide buyers wishing to purchase a flat, house or piece of land for the erection of a house not exceeding 3 donums (4,014sqm). This and other matters can easily be carried out for you by a solicitor.
Once permission is granted and the property is registered in the buyer's name, there is no restriction on selling the property or disposing of it by will.
Exchange Control
Now that Cyprus is part of the E.U., exchange control restrictions have been abolished both in respect of buying and selling immovable property.
Mortgage & Finance
All commercial banks in Cyprus are authorised to offer mortgage facilities to assist in the purchase of property. The loan will be in foreign currency and will be to a maximum of 70% of the value of the property, with a repayment period of usually not more than 10 years.
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Contract of Sale of Immovable Property
Under Cypriot Law, such contracts must be in writing. It is also advisable that Contracts of Sale be deposited at the relevant District Lands Office within 2 months of signing the contract, so that the buyer's right to pursue the remedy of specific performance in the event of breach, are protected. Ownership in Cyprus is denoted by title deeds issued by the District Land Office. Therefore, all contracts must provide for the transfer and registration of the property in the buyer's name and to ensure title deeds are obtained.
Transfer of the Title Deed
Once the Council of Ministries has granted permission to the buyer's application to acquire property, transfer of ownership can be done. Transfer tax fees based on the value of the property, are payable by the buyer and are as follows:
| Value of property in Cyprus Pounds(CYP) | Transfer fee % |
| Up to: CYP 50,000 | 3% |
| From: CYP 50,001 - 100,000 | 5% |
| Over: CYP 100,000 | 8% |
For example, a property purchased by an individual at CYP 90,000; the transfer fee would be:
The first CYP 50,000 x 3% = CYP 1,500
The next CYP 40,000 x 5% = CYP 2,000
Total Transfer Tax Fee Due = CYP 3,500
However, should the purchase be made in joint names (provided the prices is more than CYP 50,000), the transfer tax would then be as follows:
For example, on a property purchased at CYP 90,000 the transfer tax would be:
The first CYP 45,000 x 3% = CYP 1,350
The next CYP 45,000 x 3% = CYP 1,350
Total Transfer Tax Fee Due = CYP 2,700
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Immovable Property Tax
The annual immovable property ownership tax is based upon the market value of the property in 1980, which is much lower than current market values. So for many properties in Cyprus, there is no immovable tax due.
| Value of property in Cyprus Pounds (CYP) | Annual Property Tax |
| Up to: CYP 100,000 | Exempt |
| From: CYP 100,001 - 250,000 | 2.5% |
| From: CYP 250,001 - 500,000 | 3.5% |
| Over: CYP 500,000 | 4% |
Stamp Duty
A one-off duty is levied on the purchase of property in Cyprus and rates are dependant on the contractual purchase amounts. The amount is payable to the Tax Authorities and should be paid within 30 days of signing the contract.
| Value of property in Cyprus Pounds (CYP) | Stamp Duty |
| Up to: CYP 100,000 | 0.15% |
| Over: CYP 100,000 | 0.20% |
Inheritance Tax
This was abolished as of 1st January 2000.
Local Authority Tax
This tax covers the cost of refuse disposal, street lighting etc. and ranges from approximately CYP 30.00 - 100.00 per annum, dependent on the size of your property.
Basic utilities such as electricity, water and telephone are payable direct to the relevant suppliers and charges are based on meter readings.
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