Buying Property In Cyprus

General Information - Legal Matters
The purchase of immovable property is completed in 3 major stages:

• Buying the property: Completed by signing the contracts. The buyer pays stamp duty and registry fees.
• Possession of the property: Delivery of the property.
• The transfer of the deeds in the name of the new owner: Completed when,
• Authorization is granted from the Council of Ministers (note that such a permit is not required if the property concerned is just a plot of land or a field).
• The Vendors complete the subdivision of the property through the official Land Registry Office. Where applicable the Purchaser pays the transfer fees.
  

Legal security
Purchasing property in Cyprus requires a contract, which is thoroughly checked on behalf of the buyer by a local lawyer.

A valid contract will be signed, stamped and registered by the Land Registry Office. The Purchaser will be entitled to secure possession of the property prior and regardless of when the transfer of title deeds takes place.


Property taxes & registration fees

I. Transfer fees
Transfer of ownership takes place by a simple process of registration at the Land Registry Office either by the purchaser personally or by a legal representative. However, in the case of Non-Cypriots, shall be shown that the property has been paid with foreign exchange and the approval by the Council of Ministers to buy property in Cyprus is granted.

Prior the registration of the property the purchaser should pay the transfer fees to the Land Registry office. The transfer fees are calculated on the contract price or the current market value as follows:

First CYP50.000 3,0%
Next CYP50.000 5,0%
Over CYP100.000 8,0%

For example if the purchase price is CYP 90,000:
The first CYP 50,000 @ 3 % = CYP 1,500
The next CYP 40,000 @ 5 % = CYP 2,000

TOTAL: CYP 3,500

Furthermore, in case the purchase is made in joint names and the price is more than C£ 50 000, the effective value for calculation is halved.

For example if the purchase price is C£ 90 000:
1st Buyer CYP 45,000 @ 3 % = CYP 1,350
2nd Buyer CYP 45,000 @ 3 % = CYP 1,350

TOTAL: CYP 2,700

II. Stamp-Duty
Stamp duty is payable by the purchaser at the rate of 1.50 pounds per thousand for the first CYP100,000 and at the rate of 2.00 pounds per thousand for the further amount.
Stamp-Duty must be paid within 30 days of signing the contract.

For example if the purchase price is CYP 150 000:
First CYP 100,000@ 1.5 % = CYP 150
Next CYP 50,000 @ 2.0 % = CYP 100

TOTAL: CYP 250

III. Immovable property tax
The annual immovable property ownership tax is based on the value of the property as follows:

Value of property (CYP)	Annual Property tax (per thousand - ‰)
Up to 100,000	exemption
100,001 - 250,000	2.0
250,000 - 500,000	3.0
Over 500,000	3.5