Legal Information
How to buy property in Cyprus
 Property Ownership
Compared to other countries the process of purchasing property in Cyprus by foreigners is very simple. Non-Cypriot buyers are entitled FREEHOLD ownership of a villa, an apartment or piece of land, with a maximum allowance of 4014m2 (four thousand and fourteen square metres). Offshore entities may also acquire premises for their business or for residence of their foreign employees. Property prices in Cyprus are on average 20% - 30% lower than Portugal, 30% - 40% lower than in Spain and 50 % - 60% lower than Italy and France.
Mortgage Finance
All commercial banks in Cyprus are authorised to offer mortgages facilities to assist in the purchase of property. The loan will be in foreign currency.
The amount ranges from 60% - 80% of the value of the property with a repayment period ranging from 7 - 15 years. Easy terms of payments and long-term in-house finance schemes are also available.
 Title Deeds
Transfer of ownership from Vendor to Purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with Power of Attorney.
The transfer of ownership requires two permits, which are:
1. from the Council of Ministers and
2. from the Central Bank of Cyprus.
Both permits can be easily obtained from the Cypriot authorities.
Property Taxes, Fees and Rates. Real Estate Transfer Tax Fees
Real Estate transfer tax fees are necessary in order to transfer FREEHOLD ownership to the name of the purchaser. This can be done as soon as the relevant Government Authority has issued the Title Deed and the purchase has been completed. The Transferee is responsible for the tax payment. The rates are on a graduated scale.
Immovable Property Tax
The annual immovable property ownership tax is calculated on the value of the property as at 1st January 1980. Payable on a yearly basis. Certain immovable properties are exempt.
 Capital Gains Tax
On disposal of the property, capital gains tax will be payable at the rate of 20% on the gain with the first CYP 10,000 being exempt for each person. There is also an indexation allow acne. On top of this allowance, regarding the transfer fees paid inflation per year and the cost of any additions made to the house. Gains from the disposal of a dwelling house are exempt up to CYP 50,000 in total if the owner resides in it for at least 5 years prior to disposal.
Stamp Duty
The purchaser is liable for the payment of the stamp duty at the rate 1.50 pounds per thousand up to the value 100,000 CY pounds and thereafter at the rate of 2.00 pounds per thousand. This should be paid within 30 days of signing the contract and the developer will, at the request of the purchaser, pay this and debit his account. |
