Immovable Property Tax
As from 1.1.2017, there is no Immovable Property Tax.
Until the separate title deeds are issued the above tax is paid by the Developer who will in turn charge the buyer accordingly. After the separate title deeds are issued and transferred to the name of the buyer the buyer may claim a refund from the tax authorities, according to which value band he falls.
Stamp Duty on Contracts
The purchaser is liable for the payment of stamp duty on the purchase price of the property at the rate of
|
Contract Value (€) |
Stamp Duty |
|
0-5.000 |
0 |
|
5.001-170.000 |
For every €1.000 or part of €1.000 the stamp duty is €1,50. |
|
170.001- |
For every €1.000 or part of €1.000 the stamp of duty is €2,00 |
Local Authority Taxes & Sewerage charges
These vary depending on the municipality. A rough guide could be approximately € 150 - € 350 per year for a property of value around €300.000.
Other bills
The basic utility bills like electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.
Refuse collection fees are paid by the tenant and vary. A rough guide is around €100-€200 per year.
Transfer Fees
These are paid after the separate title deeds are issued for a newly built property, on transfer of the immovable property to the name of the buyer and not on the date of purchase. On 21st of July, 2016 there was an amendment regarding the payment of Immovable Property Tax.
According to the current legislation:
· There are no transfer fees for properties purchased which are subject to V.A.T.
· Transfer fees are reduced by 50% for properties purchased that are not subject to V.A.T.
|
Value of property € |
Transfer fees rate % (If no VAT) reduced by 50% |
Transfer fee (if VAT) |
|
0-85.430 |
3 |
NIL |
|
85.430-170.860 |
5 |
NIL |
|
170.860- |
8 |
NIL |
As an example for a sales contract of value €300.000 plus V.A.T. There are no transfer fees.
If the sale is not subject to V.A.T. and as an example for a sale contract of value€300.000 on the name of Mr & Mrs X the transfer fees will be calculated on each buyer separately on €150.000. So the transfer fees will be €2.562,90 for the first €85.430, €3.228,50 for the remaining €64.570 up to €150.000, times two,total amount is €11.582,80.The above is reduced by 50% to €5.791,40. If the contract is on just one name,the total transfer fees will be €17.165,60,reduced by 50% to €8.582,80.
Capital Gains Tax
On gains from disposal of immovable property situated in Cyprus, capital gains tax will be imposed at the rate of 20% with the first € 17.086,14 being exempted for each person. The gain is the difference between the sales proceeds and the original cost of the property adjusted for inflation.
Other costs like transfer fees paid and additions made to the property are added to the cost of the property
In the case of joint ownership the computation of tax is made for each owner separately.