BUYING PROPERTY

Non-Cypriots are permitted to buy, for personal use, one of the following: 
a) an apartment
b) a house on a site not exceeding 2 donums (2,675 sq. metres) 
c) a piece of land not exceeding 2 donums (2,675 sq. metres)

In certain circumstances a non-Cypriot may be granted permission to own a property that exceeds these dimensions.

After the the signing of the sales contracts and Aliens' Agreement, a written application for approval must be submitted to the Council of Ministers .

Transfer of ownership is a simple procedure through the Cyprus Land Registry Office, either by the buyer or by appointing a third party with a Power of Attorney.Non-Cypriots, also need evidence that the property has has been paid with foreign exchange.

The title deed when issued, will register the name of the buyer in the Government archives. Once the property is registered in the name of the purchaser, he/she has the right to dispose of it by Will.

Contrary to the risks involved in some other countries, Cyprus has never been involved in the in the expropriation of property owned by foreigners.
 

FEES & TAXES

After the transfer of the property, the District Land Registry Office will charge transfer Fees, based on the property's value:

 

For up to CYŁ 50.000	3%
For CYŁ50.001 - CYŁ100.000	5%
For CYŁ100.001 - and over	8%

A stamp duty - at the rate of CYŁ1.50 per CYŁ1,000 up to CYŁ100,000 and thereafter at the rate of CYŁ2 per thousand  - is due at the time of signing the Contract.

The annual property ownership tax imposed by the government is approximately CYŁ60-120 per year, depending on the value of the property. The Municipal authorities also levy an annual property tax for services rendered at the rate of about CYŁ20-30 per year. 

Property sales are subject to a capital gains tax at the rate of 20% on the gain. However the first CYŁ10,000 is exempted and there is an indexation allowance. 

Inheritance Tax is not payable on property purchased by non-Cypriots when the beneficiary is not in Cyprus.

OTHER EXPENSES

Electricity and water supply are based on consumption of each unit. A rough guide could be approximately CYŁ300 per  year. 

The regular collection of rubbish is done by local Municipal or other authorities and it costs approximately CYŁ30-50 per year.

Other expenses, like the cost of cleaning and maintaining common areas, are payable over fixed periods throughout the year. They vary depending on the area and type of property but they are estimated to be in the region of CYŁ150 – CYŁ300 per year.

Insurance cost is approximately CYŁ2.00 per CYŁ1,000 sum insured per year.

FINANCING

Various long term payment schemes are offered by local banks and developers. A deposit of 20-30% is required on signing a purchase agreement and the balance can be paid in 84-144 consecutive monthly instalments at 9% interest on the reducing balance. There are also schemes for purchasing property during the construction period or before.

TAX ADVANTAGES

Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income. Cyprus also has double taxation treaties with many countries, safeguarding its residents from paying tax in both countries.

DUTY FREE PRIVELEGES

Personal effects, household goods and furniture can be imported free of any taxes by immigrant retirees, provided they are for personal use and have been used for a reasonable amount of time – approximately one year. There is no duty on a car, and for retired couples there is an additional concession of two duty free cars.

MORTGAGE LOAN CALCULATORS

NON CYPRIOTS RESIDING IN CYPRUS

Non-Cypriots wishing to reside permanently in Cyprus must apply to the Committee of Aliens Control and can obtain residence permission if they fall in the following categories:

CATEGORY A : Starting an offshore office in Cyprus.

CATEGORY B : Starting their own business in Cyprus with a minimum capital of CYŁ150.000

CATEGORY C : Employed in Cyprus by a Cypriot employer.