Financial information

Financial information

Property acquisition:
Cyprus is the most popular overseas real estate in the Mediterranean. The legalities for property purchase are relatively simple. A governmental approval for buying property is required for foreigners, which is granted as a routine to all bona fide purchasers, if the following are met:

• No criminal record
• Annual income of CY £12 000

Non Europeans are permitted to buy for personal use:

• An apartment
• A house
• A plot of land
• Each kind of property not exceeding 3 donums (4, 000 square metres)

Procedures:
A written application must be submitted by the non Europeans purchaser to the Council of Ministers to grant permission for acquiring immovable property in Cyprus. The application should be submitted after the sign of sale contract. The approval is granted to all bona fide purchasers, as a routine procedure.

Nominal application fee is CY £150, payable when permission is granted.

Transfer of ownership from vendor to purchaser is accomplished through the Cyprus Land Registry Office by a simple procedure, either by the purchaser in person, or by appointing a third party with a Power of Attorney.

For a non Cypriot purchaser, the prerequisite for registration is to provide evidence of payment for the property with foreign exchange, as well as the signed contract of sale.

Upon the issuance, the title deed will be registered in the name of the purchaser, and will be recorded in the Government archives, which are confidential and inaccessible.

Transfer Fees:
Transfer fees are a one-off payment borne by the purchaser and payable to the land registry in the district of your property’s location. The amount is based on a sliding scale as shown in the table below, and depends on the market value of your property on the date of purchase. The fee is due in cash when the title deeds are transferred into the purchaser’s name.

Transfer Fees based on Land Registry Office evaluation:

• Up to CY £50 000 - 3% fees
• CY £l50 001 - CY £100 000 - 5% fees
• Over CY £100 000 - 8% fees

For example:
Purchase price: CY £85 000
Fees: First CY £50 000 x 3% = CY £1 500
Next CY £35 000 x 5% = CY £1 750
Total Fees: = CY £3 250 (3.82%)

Stamp Duty
Stamp duty is due upon signing the contract.
Stamp duty rate:

• Up to the 100 000 - 1.5%
• Over 100 000 - 2%

For example:
Purchase price: CY £150 000
Stamp Duty; First CY £100 000 x 1.5% = CY £150
Next CY £50 000 x 2 ‰ = CY £100 Total Fees: = CY £250

Immovable Property Tax: per annum, pounds per thousand

• Up to CY £100 000 - Exempt
• CY £100 001 - CY £250 000 - 2.5%
• CY £250 001 - CY £500 000
• Over CY £500 000 - 3.5%

Municipal Authority Taxes:
These they levy an annual property tax at the rate of about CY £20 - CY £40 per year and they are for refuse collection, street lighting, sewerage etc.

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