Laws & Costs

This page provides all the information you need to know regarding the laws and costs involved in purchasng a property in Cyprus. Please select from the list below to be taken to directly to the relevent section:

Property Ownership

Compared to many other countries purchasing property in Cyprus by foreigners is relatively simple.

Non Cypriots are permitted to purchase (for their personal use) either:

•  an apartment
•  a house or villa on a site
•  a piece of land

The maximum allowed area is 4,013 square meters (an equivalent of 43,195 square feet)

Offshore entities may also acquire property in Cyprus (for their business purposes and/or for their employees' residential needs. In certain circumstances a non-Cypriot may be given permission to own a property that exceeds these dimensions.

Permission to transfer the property bought to the non-Cypriot's name must be sought from the Cyprus Council of Ministers. However this is granted more or less as a matter of course to all bona fide purchasers.

In the meantime, purchasers may take possession of the property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable time after signing the contract of sale.
 
 

Property Registration/Transfer Fees

For Example, if the purchase price is CY£ 90,000:

Stamp Duty

Due at the time of signing the contract, stamp duty is levied at the rate of CY£ 1.5 per CY£ 1,000 up to the value of CY£ 100,000, and above that the rate is CY£ 2 per CY£ 1,000

For Example, if the value (or purchase price) is CY£ 150,000:

Immovable Property Tax


The annual immovable property ownership tax is based upon the value of the property. Certain immovable types of property are exempt.

Local Authority Taxes and rates

Estimate roughly something between CY£ 50-150 per year depending on the size of your property. This tax is for garbage collection, street lighting, sewerage, etc...

  



Acquiring the Title Deed

Transfer of ownership from vendor to purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party (i.e. a Licensed Estate Agent ) with a Power of Attorney.

In the case of the non-Cypriot, a prerequisite of registration is evidence that the property has been paid for with foreign exchange.
When one buys a piece of land or a house, the seller as a rule must have a title-deed in his own name which can be transferred to the purchaser. However, if one buys a flat, especially one still under construction, there is no title-deed in existence for the flat and sometimes the seller does not have a title-deed even for the land on which the building is being built because it may still be in the name of the original owner from whom the developer has purchased the property and to whom he stills owes money. These are matters which the purchaser's lawyer must consider and embody in the contract, as well as take such other steps as may be necessary so as to safeguard the interests of the purchaser.

Legal Safeguards for Foreign Investors

Contrary to the risks inherent in the purchase of property in some countries, Cyprus has never been involved in the nationalization of any sector of the economy, nor in the expropriation of property owned by foreigners. Indeed the Republic has often guaranteed foreign investments jointly and severally with local participants - consistent with its efforts to create a favorable climate for such investments.

Selling your Property

You can sell the property at any time and with no restrictions. However there are two different cases:

a) If the property is sold to a non-Cypriot who is paying from external funds, then the whole amount can be repatriated without any requirements.
b) If the property is sold to a Cypriot, who is paying in Cyprus pounds then the seller is entitled to repatriate an amount equal to: I) what he paid to buy the property, II) plus any other (proved) costs involved with additions or extensions of the property, III) plus the transfer fees, IV) plus the inflation, V) plus CY£ 50,000 (fifty thousand pounds) per person per year.

  



Taxation

There are substantial tax advantages for U.K. citizens retiring to Cyprus.

The U.K./Cyprus double taxation treaty which is unique in this respect, enables United Kingdom pensioners to remit both government as well as private sector occupational pensions to Cyprus free of withholding taxes in the United Kingdom.

In practically all other United Kingdom double taxation treaties government pensions are almost always subject to withholding taxes at source. Hence the relief offered to British government pensioners resident in Cyprus is unique to Cyprus and generally not available elsewhere under the terms of other U.K. double taxation treaties.

Similarly foreign retirees living in Cyprus are taxed at only 1/10th of the local rate, foreign retirees pay income tax at the rate of 5% per annum on all imported pensions, with an annual exemption of the first CY£ 2,000.

  


Tax Benefits

The United Kingdom also maintains a reciprocal agreement with Cyprus in respect of National Insurance pensions benefits, which in the hands of foreign retirees living in Cyprus remain index linked.

Cyprus levies taxation only on a remittance basis, that is, it taxes only assets that are brought into Cyprus, rather than the more punitive system of taxation on world-arising income that is practiced in may other countries including the U.K. and U.S.A. as well as Spain and Portugal. Residents of Cyprus can thus legally hold assets tax-free in banks in tax havens such as the Isle of Man and Jersey, and suffer no taxation on bank interest or dividend income remaining outside Cyprus. No capital gains tax is charged on the remittance of capital assets to Cyprus such as money needed for the purchase of property and other similar capital assets such as motor vehicles.

Increasingly, Cyprus is used as a residential base for former residents of the U.K. Who wish to restructure their personal assets in a favorable tax jurisdiction, where U.K. capital gains tax and income tax exposure can be effectively and legally minimized. The potential tax advantages for retirees are thus truly substantial and the use of Cyprus as a fiscal base for retirees of all nationalities should not be ignored.

Simple Guide To Purchasing Property In Cyprus

Our Company will guide you through purchasing a property in Cyprus both legally and effectively.
1. You will sign a Contract with the company that owns the property you have chosen.

2. The Contract then needs to be stamped. This costs CY£ 1.5 per CY£ 1,000 of the Contract value. When the Contract has been stamped, it will be deposited at the Land Registry within one month. This process secures the Purchasers rights.

3. As a foreign investor you have to provide proof of importation of foreign currency for the purchase to the (Cyprus) Central Bank. (Providing this will enable the future exportation of the funds) This proof may be obtained in two ways. Firstly, if importing cash, this should be declared at the airport or secondly, the funds may be transmitted through normal banking channels into the Company's account.

4. Once the monies have been imported, approval will be obtained from the Central Bank. This approval will also be required by the Land Registry prior to the Title Deed of the chosen property being registered in your name.

5. If the property is sold in the future, imported funds can then be exported in total plus any profit to the value of CY£ 10,000 per annum.

6. An application will need to be made to the Council of Ministers for permission to own property in Cyprus. Transfer of ownership (Title Deed) cannot take place until this is received. This application will require details of the property and the personal and financial status of each applicant. This permit usually takes approximately six (6) months to complete so it is advisable that the application is made in good time.

7. When the permit is received from the Council of Ministers and assuming the Title Deeds are issued (in the case of new property) then the transfer can take place.

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