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Cyprus Homefinder |
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Buying property in Cyprus has never been easier! |
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Costs associated with the acquisition of property in Cyprus Stamp duty A stamp duty of 0,15% (£1,50 per £1.000) is levied on contracts with a value of up to £100.000. For any amounts thereafter, the rate is 0,2% (£2 per £1.000). The stamp duty is payable by the purchaser within 30 days of signing the contract. Transfer fees Property transfer fees are payable by the purchaser and are due when the title deeds are issued and transferred to his name.
For example if the purchase price is £130.000 the transfer fees are calculated as follows:
A tip for saving money on transfer fees: Should the purchase be made in joint names, the effective value for calculation is halved. For example if the purchase price is £130.000 and the purchase is made in joint names you can save £1.900. The transfer fees are calculated as follows: £130.000/2 = £65.000 for each purchaser
Immovable property tax The registered owner is liable for this annual tax, which is based on the value of the property.
Capital gains tax Capital Gains Tax is levied at the rate of 20% on gains arising from the disposal of immovable property or the disposal of shares of companies the assets of which consist mainly of immovable property. However, for individuals, the total Capital Gains Tax paid is usually minimised for the following reasons: A. The cost of acquisition used for the calculation of the profit also includes any payments made for the improvement of the property or for any additions on the property as well as any interest paid for the acquisition. B. The acquisition cost used for the calculation of the profit is adjusted to take into account the inflation rate. C. The following lifetime allowances are given to individuals: i) Net capital gains up to £10.000 earned from the disposal of any property are tax exempt. ii) Net capital gains up to £50.000 earned from the disposal of a family residence (subject to certain conditions) are tax exempt. The above allowances are not available separately. An individual claiming a combination of the above allowances in only allowed a maximum allowance of £50.000. VAT on property prices after May 1st, 2004.
As of May 1st
2004 VAT is added on the price of new properties as follows: However all properties for which a valid application for Planning Permit was submitted at the Town Planning Department before the 1st of May 2004 are fully exempted from VAT. As a result, there is heavy demand for all properties that are not affected by the VAT addition and serious buyers are advised to expedite their visit to Cyprus to purchase such properties.
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