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The transfer fees payable to the Land Registry depend on the value of the immovable property, not always on the exact amount paid by the purchaser but on the Land Registry’s opinion of fair value for sale and purchase.
| Value of Property € | Transfer fees rate € | Accumulated Tax € |
|---|---|---|
| 0 – 85,430.07 | 3% | 2,562.90 |
| 85,430.08 – 170,860.14 | 5% | 6,834.40 |
| over 170,860.15 | 8% | . |
A purchase contract must be fully stamped by the Tax Office and then may be lodged in the Land Registry Office for specific performance purposes fully stamped by the Tax Office. The contract should be stamped within 30 days of its signing. The rates are as follows:
For contracts up to €5,000 there is no stamp duty available.
| €5,001 - €170,860 | 0.15% |
| €170,861 - €8,543,000 | 0.20% |
| Over €8.543.000 | €17.086 |
There is no inheritance tax in Cyprus
Capital Gains Tax is the tax imposed on gains from disposal of immovable property situated in Cyprus including gains from the sale of shares of companies which own immovable property situated in Cyprus. The capital gains tax is calculated on the balance at the rate of 20%. The first €17.086 (or €85.430 in the case of private residence for at least five years prior to disposal) is exempt. The capital gain is calculated after deducting from the sales proceeds the original cost and any additional expenditure, adjusted for inflation, and any allowable expenses directly related to the disposal of the building such as interest on loan and advertising.
The rate of VAT is 19%. Nevertheless, 5 % VAT applies to both EU and non-EU Nationals who purchase property for use as their primary and permanent place of residence.
Tax is imposed on the owner of immovable property in Cyprus as at 1st January every year. It is calculated on the market value of the immovable property on the 1st of January 1980 and is payable by the September in the year
†Those owning property whose total 1980 value exceeds €12,500 will pay tax on their total 1980 value.
