Issues to be Aware of
Compared to many countries, the logistics of property purchase in Cyprus by foreigners are relatively simple.
- An apartment or a house
- A house on a building site not exceeding 3 donums (4,012.5 sq. metres)
- A piece of land not exceeding 3 donums for the purpose of erecting a house within a reasonable time.
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure though the Cyprus Land Registry Office, either by the buyer in person or by appointed third party with a power of Attorney. In the case of a non-Cypriot, evidence of payment for the property with foreign exchange must be provided as prerequisite for registration.
The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within sixty days from the contract date. This protects the buyer’s rights to the property and provides additional safeguards.
When issued, the title deed will be registered in the name of the buyer, and will be recorded in the Government archives. The government archives are confidential and will not be published or made accessible under any circumstances. At any time after the purchase, the buyer may sell or dispose of the property at will, provided that he/she has a valid contract.
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 (Non EU Citizens).
Upon transfer of the property and registration in the purchaser’s name, the District Land Registry of purchase, and are calculated as follows:
Value up to:
- €85500 (Cy £ 50.000) 3%
- €85501 - €170860 (Cy £ 50.001 - Cy £ 100.000) 5%
- €170861 (Cy £ 100.001) – and over 8%
Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of €2,56 per €1708 (Cy £ 1,000) up to €170860 (Cy £ 100,000) and thereafter at the rate of €3,42 per €1708601 (Cy £ 1,000,000). The purchase contract must be stamped within 30 days of days of its dates signature, otherwise a fine will be imposed.
The annual immovable property ownership tax imposed by the government is approximately €100 - €200 (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 €35 - €50 (CY £20-30) per year. Other authorities may also impose a sewage tax of €35 - €70 (CY £ 20-40), depending on the value of the property.