PAYMENTS AND EXPENSES IN CASE OF PROPERTY BUYING AND SELLING SELLER-BUYER
WHAT THE OWNER-SELLER PAYS (OBLIGATIONS)
1. CAPITAL GAINS TAX IS 20% (ON NET PROFIT). IF A PROPERTY IS BOUGHT AFTER THE 16/7/2015 UNTIL THE 31/12/2016 THE NEW OWNER WILL NOT PAY CAPITAL GAINS TAX IF HE RESELLS IT AT ANY LATER DATE AS LONG AS HE/SHE GAINS PROFIT (IT WILL BE TAX FREE). (THEY ARE INCLUDED IN THE INCENTIVES OF THE GOVERNMENT).
· THE CAPITAL GAINS TAX IS PAID AT THE INCOME TAX OFFICE IN LIMASSOL.
· THE RECEIPT (BANKERSDRAFT) WILL BE ISSUED IN THE NAME TAX INSPECTOR FOR THE PAYMENT OF THE CAPITAL GAINS TAX (IN CASE IT ARISES).
· THE AMOUNT FOR THE PAYMENT OF THE CAPITAL GAINS TAX IS CALCULATED ONLY BY THE INCOME TAX OFFICE
2. LAWYERS EXPENSES (IF ANY).
3. PAYMENT OF ALL THE GOVERNMENT AND MUNCIPAL TAXES (REAL ESTATE TAX-LIMASSOL MUNICIPALITY OR ANY OTHER MUNCIPALITY IN WHICH THE PROPERTY BELONGS TO (PROPERTY CHARGES, REFUSE ETC.) –SBLA (SEWERAGE BOARD) CONFIRMATION OF PAYMENT IS NEEDED FROM EACH AUTHORITY (IF THERE IS DEBT IN THE INCOME TAX IT HAS TO BE PAID).
WHAT THE BUYER PAYS (OBLIGATIONS)
1. TRANFER FEES (THE PAYMENT IS DONE AT THE DEPARTMENT OF LANDS AND SURVEYS). WITH THE SIMULTANEOUS TRASFER OF THE PROPERTY THE RECEIPT IS ISSUED IN THE NAME LIMASSOL DISTRICT LANDS OFFICER THE PAYMENT CAN BE ACCEPTED BY VISA OR CHEQUE WHICH SHOULD BE BANKERSDRAFT. (SEE TABLE No.1 ON HOW THE TRANSFER FEES ARE CALCULATED)
2. DOCUMENT AFFIXING (PAYMENT AND AFFIXING IS DONE AT THE INCOME TAX OFFICE IN LIMASSOL). AFFIXING COST DEPENDS ON THE PROPERTY PURCHASE VALUE (SEA TABLE No.2).
· DOCUMENT DEPOSIT (PAYMENT AND DEPOSIT AT THE DEPARTMENT OF LANDS AND SURVEYS) €50 CHARGE.
3. LAWYER EXPENSES (IF ANY).
TRANSFER FEES (TABLE NO.1)
3% FORM €0001 UP TO €85.000
5% FROM €85001 UP TO €170.000
8% FROM €170.001 AND MORE
2 PERSONS 3% FROM €0001 UP TO €170.000 5% FROM€170.001 UP TO €340.000 8% FROM €340.001AND MORE
(THE AMOUNT AND PAYMENT SCALES ARE ADJUSTED ACCORDING TO THE NUMBER OF PEOPLE THAT THE PROPERTY WILL BE TRANSFERRED).
-THE AMOUNT OF PAYMENT FOR TRANSFER FEES IS CALCULATED BY THE DEPARTMENT OF LANDS AND SURVEYS. HOWEVER THE DEPARTMENT OF LANDS AND SURVEYS IS NOT OBLIGED TO ACCEPT THE AMOUNT (PURCHASE VALUE) OF THE PROPERTY DOCUMENT AND IT ESTIMATES ON ITS OWN THE VALUE OF THE PROPERTY FOR TAX IMPOSITION PURPOSES OF TRANFER FEES.
-IN THE CASE THAT THE PURCHASE IS SUBJECTED TO VAT (NEW HOUSES OR APARTMENTS), THERE ARE NO TRANSEFER FEES. APPLICABLE UNTIL 31/12/2016. (THEY ARE INCLUDED IN THE INCENTIVES OF THE GOVERNMENT)
-IN THE CASE OF A PURCHASE OF ANY PROPERTY WHICH IS NOT SUBJECTED TO VAT (HOUSE, APARTMENT, LAND, PLOT) THE TRANSFER FEES ARE PAID AT 50% OF THE ESTIMATED TRANSFERS UNTIL 31/12/2016.
STAMPS (TABLE No.2)
€0 UP TO €5.000 0 ‰ PER MILLE
€5.001 UP TO €170.000 11/2 ‰ PER MILLE
€170.001 AND OVER 2 ‰ PER MILLE
VAT: ALL RESIDENTIAL PROPERTIES THAT ARE NEW AND HAVE NEVER BEEN INHABITED NOT EVEN FOR A DAY AND ARE GOING TO BE INHABITED AS FIRST PERMANENT RECIDENCE FROM THE BUYER THE FIRST 200m2 ARE SUBJECTED TO 5% VAT AND THE REMAINING m2 TO 19% VAT (IF THE APPLICATION THAT THE BUYER SUBMITS TO THE VAT SERVICES IS APPROVED). ALL NEW COMMERCIAL PROPERTIES ARE SUBJECTED TO 19% VAT.
Immovable Property Tax
The Immovable Property Tax is calculated on the market value of the immovable property as on 1st January 1980, and refers to the immovable property of the taxpayer who is in Cyprus the 1st January of each year.
Tax Rates Property Value (in 1.1.1980) (€)
1 - 40.000*
40.001 - 120.000
120.001 – 170.000
170.001 – 300.000
300.001 – 500.000
500.001 – 800.000
800.001 – 3.000.000
3.000.001 and up
Tax rate (‰)
Tax Amount (€)
Collective Tax (€)
* Owner of immovable property of which its value does not exceed 12.500 (with values of 1st January 1980) it’s relieved from Immovable Property Tax.
The following are exempt from property tax:
- Public Cemeteries
- Public Hospital
- Property own by the Republic, foreign embassies and consulates
- Listed buildings under certain conditions
- Agricultural land used for agricultural or animal husbandry and its owned by a farmer
- Property located in inaccessible or depressed areas
- Property owned by a missing person
- Procurement Turkish Cypriot property lease in the free areas of the Republic between government as lessor and displaced person as lessee for housing purposes
There shall be no inheritance tax in relation to the persons who died on or after January 1, 2000
Pursuant to the Deceased Persons Estate (Taxing Provisions) Law of 2000, a submission requirement to the Director of the Inland Revenue Department within six months from the date of death.
Transfer fees are paid by the buyer to the Department of Lands and Surveys in case of property transfer, according to the market value of the property as estimated by the Land Registry.
0 - 85.000
85.000 - 170.000
170.000 and up
Collective Rights (€)
The example of the table is for one person regarding the payment of the transfer fees of the property. In case of more individuals then the amounts are adjusted accordingly.
Royalties paid for property transfer from a family company to its shareholders, as well as transfer of property by donation between spouses, parents and children or relatives up to third degree of kindred, transfer fees are calculated on the value of the property on January 1, 1980 prices based on the following factors.
- If the transfer is to a spouse 0,4%
- If the transfer is to a child 0,2%
- If the transfer is to a relative 0,4%
In reorganization, transfer of property from company to company is exempt from paying transfer fees.
Transfer Fees for the period 1/12/2011 - 31/12/2016
For the above mentioned period the following apply:
- Abolition of transfer fees where VAT is imposed.
- Reduction of transfer fees by 50% during the first transfer of real property (immovable property which is transferred for the first time from the date of its Planning Permission or Building Permit) and provided that the dates of entering into the contract for sale and its submission to the Department of Lands, it’s within the period of the validity of the law.
- The amount of payment for transfer fees is calculated by the Department of Lands and Surveys. However, the Department of Lands and Surveys is not obliged to accept the amount (Purchase Value) of the property document and it estimates on its own the value of the property for tax imposition purposes on transfer fees.
- In the case that the purchase is subjected to VAT (new houses or apartment), there are no transfer fees. Applicable until 31/12/2016. (They are included in the incentives of the Government).
- In the case of a purchase of any property which is not subjected to VAT (houses, apartment, lands, plot) the transfer fees are paid at 50%of the estimated transfer until 31/12/2016.
On lands of: 1%
For transfer of loans to another financial institution or payment of fee equal to 1% of the amount of the new mortgage or €200. Whichever amount is the smallest.
For renewal loans of the same financial institution a payment of €50 is required. In case of reorganization, no fee is imposed on the mortgage transfer from a company to a company.
All residential properties that are new and have never been inhabited not even for a day and are going to be inhabited as first permanent residence from the buyer the first 200m² are subjected to 5% VAT and the remaining m² to 19% VAT (if the application that the buyer submits to the VAT services is approved). All new commercial properties are subjected to 19% VAT.
The Capital Gains Tax is 20% (on net profit) if the property is sold after the 16/7/2015 until the 31/12/2016 the new owner will not pay capital gains tax if he resells it at any later date as long as he/she gains profit (it will be tax free). (They are included in the incentives of the Government).
- The Capital Gains Tax is paid at the income tax office in Limassol.
- The receipt (bankers draft) will be issued in the name Tax Inspector for the payment of the capital Gains Tax (in case it arises).
- The amount for the payment of the Capital Gains Tax is calculated only by the Income Tax Office.
Document Affixing: (Payment and affixing is done at the Income Tax Office of Limassol), cost for affixing depends on the value of the property.
- Document submission (payment and submission are done at the land registry) €50.
0 - 5.000
5.001 - 170.000
170.001 and up
0 per thousand
11/2 per thousand
2 per thousand