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Property Taxes and Fees

TRANSFER FEES 

Property transfer fees are payable only to the Land Registry. The amount is based on a sliding scale as shown below. The purchaser is liable for the transfer fees and is only payable on transfer of the title deeds. The fees are charged on the property's market value at the date of purchase. If the property is in joint names e.g. of a couple (husband and wife) or two individuals, then the purchase value is divided into two parts which results in reduced transfer fees. 
Market Value of property (€) Transfer fee rate (%) 
up to 85,430 3% 
from 85,431 to 170,860 5% 
from 170,861 and over 8% 

IMMOVABLE PROPERTY TAX

The registered owner is liable for this annual tax which is based on the value of property as of 1st January 1980. Property with a value of up to €170,860 is exempt from property tax. For property values exceeding this amount the rates are: 
Market value of property (€) Annual Property tax (%) 
up to 170,860 exempt 
170,861 to 427,150 0.025% 
427,151 to 854,301 0.035% 
Over 854,302 0.04%

STAMP DUTY

Cyprus property stamp duty is payable on your Cyprus property investment or new home when your lawyer has finalized the purchasing contracts. Stamp duty is payable by the purchaser at the rate of €1.50 per €1,000 (thousand) up to the value of €100,000 and thereafter at the rate of €2 per 1,000 (per thousand). Cyprus property stamp duty payable if the purchase price is €150,000: First €100,000 @ 1.5% - €150, Next €50,000 @ 2.0% - €100 - Total - €250

Note: The purchase contract must be stamped within 30 days of its signing and deposited at the District Land Register Office within a maximum of 60 days, If you do not stamp the contract and you subsequently have a dispute, you will have to stamp the contract and pay a small penalty.

CAPITAL GAINS TAX

As from the 1st August 1980, Capital Gains Tax is levied at the rate of 20% on gains realized from the sale of immovable property. However the first €17,086 is exempt from each person. The gains are the difference between the sales proceeds and the original cost of the property. On top of this allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Gains from the disposal of a residence are exempt up to € 85,430 in total if the owner resides in it continuously for at least five years prior to disposal. 

ESTATE DUTY / INHERITANCE TAX

Abolished as of 1st January 2000. 

VAT

Since 1/5/04 a statute in respect of VAT on properties was introduced. In addition to other amendments, this statute introduced VAT on the rate of 15%. 

LOCAL AUTHORITY TAX 

The registered owner of immovable property is also subject to minor taxation under other laws, such as municipal or village regulations. These taxes vary according to the area, the size and the property and cover sewerage, refuse collection, street lights. The charges range in total from € 85 to €171 per annum. In relation to water and electricity, again it all varies according to the size of the property and the size of the family. For example, the water board bill for 2 people living in an apartment will be approximately €17- 20 bi-monthly (every 2 months) and the electricity bill will be € 85-100 (bi-monthly if air-conditioning units are used)

OTHER EXPENSES 

Electricity and water supply are based on consumption of each unit. A rough guide could be approximately €500 per year. The regular collection of rubbish is done by local Municipal or other authorities and it costs approximately €50-80 per year. Other expenses, like the cost of cleaning and maintaining common areas, are payable over fixed periods throughout the year. They vary depending on the area and type of property but they are estimated to be in the region of € 250 - 500 per year.