buying in cyprus

Cyprus Law on Properties

Buying a property in Cyprus is very simple since as a non-Cypriot you are entitled to buy a freehold property,either an apartment, house, villa or a plot of land that does not exceed 4000 square meters.

Note: All properties in Cyprus are freehold.

Transfer of property and costs

The transfer of the Title of Ownership is a simple procedure done at the District Land Registry Office and also the issuing of a Title Deed after completion and delivery of the property.

Our company assists to do this, being right by your side all the way. In the case of a Non-European, there must be evidence that the property has been paid with any Foreign Currency. To buy property in Cyprus an approval is needed by the Council of Ministers for the Purchaser’s application.

However, the purchaser should pay the transfer fees which are payable to the District Land Registry Office before the issuing of the Title Deed of the property. The transfer fees are as follows:

These are based on the market value of the property at the time of purchase.

Value	Rate
Up to €85,430.07	3%
€85,430.08 - €170,860.14	5%
€170,860.15 - and over	8%

For example, the transfer fees when a purchase is done by ONE individual at a property value of €210,000.00
1st - €85,430.07 at 3%	= €2,562.90
next - €85,430.07 at 5%	= €4,271.50
remaining €39,139.86 at 8%	= €3,131.19
Total fees payable	= €9,965.59 (4.75% of purchase price)

For example, the transfer fees when a purchase is done by TWO individuals at a property value of €210,000.00
1st - €85,430.07 at 3%	= €2,562.90
2nd - €85,430.07 at 3%	= €2,562.90
remaining of 1st at €19,569,93 at 5%	= €978.50
remaining of 2nd at €19,569,93 at 5%	= €978.50
Total fees payable	= €7,082,80 (3.37% of purchase price)

Annual Property Taxes and Fees

If a person has properties registered in his name, of a market value that exceeds €170,860.14 there is a Property Tax on the excess value. The Annual Immovable Property tax is imposed by the government and is levied on the market value of the property as of 1st January 1980 at the following rates:

1. Annual Immovable Property Tax

This tax is payable to the Inland Revenue Department of the Republic of Cyprus.

Value	Rate
Up to €170,860.14	0%
€170,860.15 - €427,150.36	0.25%
€427,150.37 - €854,300.72	0.35%
€854,300.72 - and over	0.40%

2. Municipality Tax

This tax is calculated on the market value of the property and varies between 1% - 2%. Municipality tax can be paid  for at your local municipal office.

3. Sewerage Tax

This tax is calculated on the market value of the property and varies between 3% - 3.5%. Sewerage tax can be paid for at your local sewerage board.

4. Local Authority Fees

The Local Authority fee is based on the size of the property and can be a charge between €85 - €256 per annum. This fee includes communal services, such as refuse collection, street lighting, sewerage and other community services. Communal services fees can be paid for at your local municipal authority.

Stamp Duty

When a sales contract/agreement occurs, the purchaser is liable for the payment of Stamp Duty.

Stamp duty is at the rate of 0.15% for a property with market value up to €170,860.14 and the rate becomes 0.20% to a value over €170,860.14.

Stamp duty must be payable within 30 days of the signing of the sales contract/agreement.

For example, a property with a value of €210,000.00
1st - €170,860.14 at 0.15%	= €256.30
remaining €39,139.86 at 0.20%	= €78.28
Total Stamp Duty payable	= €334.58 (0.16% of purchase price)

Duty Free Privileges

Europeans who become permanent residents in Cyprus and owned an insured vehicle in their country for at least six months, are able to import the vehicle to Cyprus and will not pay an import tax.

Furniture can be imported free of any taxes by Europeans and Non-Europeans who become permanent residents provided that they are for personal use and are not brand new.

Medical services and Private Health Insurance Schemes

Cyprus has a very high standard of medical services. Hospitals, private clinics and medical centers are equipped with the latest facilities.

Many Cypriot doctors of various faculties jointly run polyclinics whose standard is comparable to other highly developed countries.

Doctors, dentists, specialists and general practitioners, are widely available and their costs are fairly similar or less costly compared to other European countries.

Health Insurance is available at reasonable costs.

Property Insurance

Insurance is varied depending on the value of the property at reasonable costs.

Company’s Services

• The purchase of household furnishings and appliances
• Vehicle purchasing or rental
• Insurance Policies for House and Contents, Life, Medical and Vehicles cover.
• Cleaning, Gardening and Swimming Pool Maintenance

Mortgage Finance

Most commercial banks in Cyprus are authorized to offer mortgage facilities to local as well as foreign applicants to assist in the purchase of their property.

General Information

The loan can be granted in Foreign Currency or in Euro.

It is advisable that the loan is in the currency that the applicant receives his income, so that there is no exposure in any exchange risk during the repayment period.

For a loan in Euro the maximum repayment period can be 25 years.

The maximum loan amount will be 60% of the value of the purchased property. In exceptional cases the amount can be 70% of the value of the purchased property (depending on the credit rating of the customer).

The loan is repaid by monthly installments.