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Buying Property in Cyprus
This page contains all you need to know about the costs and legal procedures for buying
land or property here in Cyprus. If you have any other questions of queries, please Contact us.
Property taxes/fees
Property Transfer Fees : these are necessary in order to transfer FREEHOLD ownership to your name. This
can be done as soon as the relevant Government Authority has issued the title deed and the purchase has
been settled.
The Property Transfer Fees are payable once only to the Land Registry Office according to the following
scale:
Value of Property CY₤ Transfer fee Rate
Up to 50,000 3%
From 50,001 - 100,000 5%
From over - 100,000 8%
For example:
Purchase price CY₤ 85,000
1st CYP 50,000 3% = CYP 1500
Next CYP 35,000 5% = CYP 1750
TOTAL CYP 3250 = 3,82%
Local Authority Taxes (Rates): These are between 30-100 CY₤ per annum depending on the size of
the property and are for refuge collection, street lighting, etc.
Legal system
The legal system in Cyprus is based on the British as well as Greek legal systems as is the Land
Registry, which is considered to be one of the most advanced and reliable system in the world.
Purchasers of property in Cyprus, therefore, will be far more secure, with regard to their title deeds,
than perhaps they might be in other Mediterranean countries.
Property ownership
Compared to many countries Cyprus has flexible property buying procedures.
A non-Cypriot is entitled to FREEHOLD ownership of a villa, apartment, or a piece of land of up to 4,000
sq.m.
International business units may also acquire premises for their activities or for residence of their
foreign employees.
Approval of the council of ministers
Having signed a contract of sale for your property, it will be necessary to make an application to the
Council of Ministers to grant its approval for a non-Cypriot to acquire immovable property.
Selling your property
In case of selling property, foreigners are allowed to repatriate the funds immediately to the value of
the purchase price (including any amounts spent on improvements and/or additions to the property).
Profits can also be repatriated.
Extremely low taxation
Cyprus is unique when it comes to the taxation aspects of living on the island.
Cyprus has double taxation treaties with: Austria, Bulgaria, Canada, China, Czech Republic and Slovakia,
Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait. Norway. Poland. Romania, Russia,
Sweden. UK, USA and Yugoslavia. Furthermore there are negotiations for the ramification of treaties with
Egypt, Malta, Syria, Belgium, Finland and the countries comprising the Commonwealth of Independent
States. The main purpose of these treaties is the avoidance of double taxation of income earned in any
of these countries.
For example. UK citizens may take advantage of the Double Taxation Treaty existing between the UK and
Cyprus. This enables you to receive private and public pensions and investment income in Cyprus FREE of
UK withholding tax.
The remittance system compares extremely favourably with the tax system used in many other countries
including popular sunspots like Spain.
Recent tax reforms sharply reduce the tax burden and foreign residents are now taxed on a flat basis of
5% per-annum on pension income over ₤2000. There is 0% on investment income (i.e. dividends & interest)
brought into Cyprus. In special circumstances exemptions totaling up to CYP 4,000 per person or CYP
8,000 per married couple may apply.
Consequently, the total tax burden on alien residents is in practice often only 3%. This compares
extremely favourably with competing destinations where property owners are subject to high tax exposure
levels of up to 60%.
Insurance pensions can be paid to retirees in Cyprus on a similar tax-free basis, and are index-linked
by virtue of the Reciprocal Agreement, compared to their "frozen" status in other overseas destinations.
Banking Standard
The banking system in Cyprus closely follows the British pattern. The banks, having many convenient
branches are efficient, modern and well equipped with the latest technology. Non-Cypriot citizens may
open both foreign and local currency accounts. Many international banks have branches in Cyprus.
Major credit cards, such as Visa and MasterCard are widely used. Transactions and payments are simply
made through your foreign deposit account.
Do the properties have title deeds?
Properties have title deeds. The title deeds are transferred to the buyer's name as soon as they are
issued by the Land Registry Department and following the settlement of the agreed selling price, and the
Council of Ministers approved.
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