Purchasing a piece of property is an enormous endeavour, one that requires careful planning and expert assistance. At Dynamic Sphera Construction & Developers Limited, our team of professionals and associates are on hand to assist you, every step of the way. Read below for some useful background on the most important Legal and Financial aspects of purchasing a piece of property in Cyprus.
Property in Cyprus is registered on a land registry like that of the United Kingdom. The Land Registry system in Cyprus has been continually updated and modernised to make it one of the most efficient and sophisticated land registry systems in the world. Property purchasing in Cyprus is therefore a very straightforward and simple procedure.
Stamp Duty and Mortgage Fees:
In case of a sales contract, the purchaser is liable for the payment of stamp duty at the rate of 0.15% on the first €170.000, and 0.20% above this threshold. The duties and fees are payable when the Contract of Sale is stamped at the Tax Department prior to its deposition to the Land Registry.
EU citizens that are permanent residents in Cyprus do not require permission to transfer any immovable property on their names. Non-Cypriot, non-EU citizens do however require permission to transfer property from the Council of Ministers. Application to the Council of Ministers can be submitted by the third country national purchaser within a reasonable period after the Contract of Sale has been signed. Permission is usually granted as a matter of course to all bona fide purchasers within two months. During this process purchasers may take possession of their property without restriction.
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:
Note: For properties owned jointly by a couple, transfer fees are charged on 50% of the property value for each, providing an advantage for any property value exceeding €85.430.
Note: Properties purchased after the 2nd of December 2011, which are subject to VAT will be exempt from the above transfer fees. Properties not subject to VAT will be eligible for a 50% exemption from the above transfer fees.