Costs associated with the acquisition of property Southern Cyprus
Living expenses are accrued in Cyprus as in any other civil and social democratic country. This include, but are not exclusive to:
V.A.T.
Vat has been applied in Cyprus to property dealings since 2004.
Transfer fees
Property transfer fees are payable once only to the Cyprus land registry. The amount is based on a sliding scale basis. The fee is borne by the purchaser and is due directly when the title deeds are transferred to his name or company.
Scale:
|
Value of property (CY£) |
Rate of transfer fee (%) |
|
Up to £50,000 |
3.0 |
|
£50,000 - £100,000 |
5.0 |
|
Over £100,000 |
8.0 |
Example:
Purchase price CY£90,000
First £50,000 @ 3% = CY£1,500
Remaining CY£40,000 @ 5% = CY£2,000
TOTAL transfer fees = CY£3,500
Immovable Property Tax
The registered owner is liable for this annual tax which is based on the value of his property as at January 1st 1980, which is very similar to U.K. council tax. Property belonging to individuals or married couples valued at and also up to CY£100,000 is exempt from this tax. Contact us for rates for properties of CY£100,000.
Stamp Duty
A Cyprus stamp duty of £1,50 per thousand is levied on all purchase contacts with a value of up to CY£100,000. For any amounts more than this, the rate is 2.00%. This duty is due within 30 days of signing the contract. The payment is payable by the buyer when presenting the contract to the tax authorities for authentication and validation as an official document acknowledge by the government authority.
Capital Gains Tax
As with all European member states 'Capital Gains Tax' is applicable. Gains from the sale of immovable property in Cyprus are taxed at a rate of 20%. However, generous exemptions are given, i.e. net capital gains up to CY£50,000 earned from the disposal of a family or domestic residence are tax exempt.
Common Expenses
These are payable over fixed periods throughout the year. They cover an owner's share towards the cost of cleaning and maintaining common areas such as gardens, swimming pools, management fees and repairs. They are estimated to be in the region of £150 – 250.00 per year and are usually paid to an Estate management.
Electricity and Water Supply
Both services are payable to the appropriate authorities over fixed periods throughout the year. They are based strictly on the consumption of each unit. A rough guide could be approx. £180.00 per year depending on size of property and how much time is spent in the property. Air conditioned aprtments, flats and houses tend to be slightly higher. Rubbish is collected by the municipal authority at an approx. cost of £20-30.00 per year.