We are happy to provide information on buying and selling property in Cyprus. This content is provided strictly for information only! Consult an independant solicitor for advice on property law in cyprus. There are many solicitors in Cyprus and Cyprus solicitors can give you all the information you'll need on matter like immoveable property tax etc.
Legal and financial Information
Department of Land Registry
Property in Cyprus is registered on a land registry System similar to the Uk. The Land Registry in Cyprus has been continually updated and modernized to make it one of the most efficient and sophisticated land registry systems in the World. Property purchase is therefore a very straightforward and simple procedure.
Property purchase permission
Permission to purchase property must be obtained from the council of Ministers with a written application that must be submitted by a foreign purchaser after the agreement is signed. Permission is usually granted as a matter of course to all bona fide purchasers. During this process purchaser may take possession of their property without restriction. Application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable period of time once the contract of sale has been signed.
EU citizens that are permanent residents in Cyprus do not require permission to purchase any immovable property in Cyprus. Non-Cypriot citizens require permission from the Council of Ministers to purchase property in Cyprus. This normally takes from 6 – 14 months and without this permission title deeds cannot be transferred to the purchaser. Although time consuming, this is a quite easy, problem free process.
Financing Property Purchases
Finance schemes are available through most banking institutions in Cyprus. The base rate of interest is specified by the Central bank of Cyprus and is currently 5.5% (June 2007)
Legal costs
The legal costs for a Solicitor to do the searches and draw up contracts of sale may range from £ 800-£ 1000
Stamp duties etc
In case of a sales contract the Purchaser is liable for stamp duty payment at the rate of 0.15% on the first Cy£ 100,000, and 0.2% above this threshold. The duties and fees are payable on signing the contract of sale.
Transfer fees
Upon the transfer of the property and the registration into the purchasers name, the District Land Registry 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 £ 50,000 – 3%
£50,000 - £ 100,000 – 5%
£ 100,000 – and over 8%
Transfer fees are charged accumulatively and are payable at the time of the issuing of the title deeds ( usually 3 – 5 years after after final delivery of property) For properties owned jointly by a couple, transfer fees are charged on 50% of the property value for each, providing an advantage for any property exceeding £ 50,000
VAT payable on property
For projects that the town planning application has been filed after the 1st May 2004, VAT will apply on the sale price. It will have two rates, 5% for the first purchase of residence by permanent resident of Cyprus and 15% for any other purchase.
Annual Property Tax
Immovable property tax:
The registered owner of the property is liable to an annual immoveable property tax calculated on the market value of the property as at 1st January 1980. This varies according to values between 0 to 4 Cy £ per thousand. Typically the average is from £50 - £ 100 per annum