MENU Purchase Guide The below is intended as a guide only and not a substitute for a professional tax/legal advisor. A GUIDE TO THE PURCHASE OF PROPERTY IN CYPRUS As of 1st May 2004, EU citizens of EU Member States (natural and legal persons) may also purchase property for commercial use. However EU residents that are not also residents of Cyprus including non-EU citizens, continue to be restricted to either purchasing land not exceeding 3 donums (4,014 sq.meters) for the purpose of erecting a home within a reasonable time frame or instead buying a villa or apartment. EU nationals who live or work in Cyprus are still required to possess a permit to own immovable property, however EU nationals not residing in Cyprus require only a permit to own a home but not land. Council of Ministers for Approval With the acceptance and signing of a contract of sale for the purchase of your property a written application is submitted to the Council of Ministers to grant its approval for a non-Cypriot to acquire immovable property. This is a formality but can take upto 12 months. In the meantime there is no restriction on the purchaser taking up possession of the property. Payment of the Property The payment of your property is required in Euro from external funds. bank drafts, personal cheques and telex/swift transfers are acceptable. Sale of the Property On the sale of the property all proceeds can be repatriated from external foreign currency. Duty Free As of 1st May 2004 and the accession of Cyprus to the EU, only retirees are eligible to duty free which includes duty free cars and household goods. Land Registry Transfer Fees This is undertaken on the approval of the Council of Ministers and is necessary to transfer Freehold ownership to the purchaser when registered at the Land Registry Office. Property Value Euro -> Rate % Upto 85.430 -> 3,0% 85.431 - 170.860 -> 5,0% Over 170.860 -> 8,0% The Land Registry will then provide a "Specific Performance" instrument protecting the purchaser's ownership rights until the titel deeds are issued and transferred to their name. Stamp Duty A stamp duty rate of 1.5% up to the value of Euro 170.860 and 2% over the the value of Euro 170.860 is payable by the purchaser. The duty is paid 30 days of signing the sale contract. Immovable Property Tax The tax is based on the value of the property and is payable by the registered owner. Property Value in Euro -> Rate % Upto 170.860 -> exempt 170.861 - 427.150 -> 2,5% 427.151 - 854.300 -> 3,5% Over 854.300 -> 4,0% Capital Gains Tax Capital Gains Tax is levied at 20% on gains arising from the disposal of property, however allowances and exemptions from Capital Gains Tax exist and should be discussed with a tax or legal advisor. Value Added Tax Sales of new buildings are subject to VAT with reduced rates applying to a first residence of a new building. Estate Duty No Estate Duty as of 1 January 2000. Taxation Double taxation agreements exist between Cyprus and various countries. Therefore, current legislation should be confirmed with a legal or tax advisor. Communal Fees Communal Fees differ depending on the development and property. This shared fee payed by the owner's includes cleaning, maintaining, repairs and management fees. Home For sale Paphos Weather Currency Converter (C) 2015 PAFICO DEVELOPERS, PAPHOS, CYPRUS