Featured Property |
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| Legal
& General Info |
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Foreign Ownership of Property
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Individual Purchasers - What am I allowed to own?
If you are a national of an EU member country and are resident in Cyprus, you are allowed to own as much immovable property (includes both land and buildings) as you wish.
If you are a national of an EU member country and are not resident in Cyprus, you are permitted to own as much land as you wish, but if you wish to buy any other type of immovable property, eg. House or apartment your ownership is restricted to one house or one apartment for which approval from the Council of Ministers is needed.
If you are a national of a non-EU country then you need to seek the approval of the Council of Ministers to own any type of immovable property.
Company Purchasers - What am I allowed to own?
No special permits are required:
(I)Companies formed in any EU member state (not in the Republic of Cyprus):
a) are based in the Republic of Cyprus and
b) have their central administration or their main offices in the Republic of Cyprus,
irrespective of who they are controlled by (Cypriots, Europeans or others), can acquire any type of immovable property.
(II)Companies formed in any EU member state (not in the Republic of Cyprus):
a) are based in the any EU member state and
b) have their central administration or their main offices in the any EU member State,
can acquire immovable property without any permit apart from an apartment or house, irrespective of who they are controlled by (Cypriot citizens, citizens of any EU member state or others).
Permits are required:
Companies formed in Cyprus and which are controlled by citizens of any EU member state, irrespective of wither their central administration or main offices are in the Republic of Cyprus, require permission from the Council of Ministers for the acquisition of any type of immovable property (land and buildings).
Companies formed in any EU member state that do not satisfy conditions (I) and (II) above require permission form the Council of Ministers for any type of immovable property even if they are controlled by citizens of the Republic of Cyprus.
Note that companies that have been formed in Cyprus and are controlled by citizens of any EU member state are in a disadvantaged position compared with companies that have been formed in any EU member state. Essentially, companies in this category, i.e. those companies that have been formed in Cyprus cannot acquire any type of immovable property unless permission from the Council of Ministers is obtained.
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TAX & DUTIES
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Immovable Property Tax
The registered owner is liable for this annual tax which is based on the value of the property as of 1st January 1980
| Taxable
Value CyŁ |
Annual
Tax (% on Taxable Value) |
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| Up to 100,000 |
Nil |
| 100,001-250,000 |
0.25% |
| 250,001-500,000 |
0.35% |
| Over 500,000 |
0.40% |
Stamp Duty
A one-off payment to the land registry in the district of your property’s location. It is due within 30 days of registering the contract with the land registry.
| Purchase
Price CyŁ |
Stamp
Duty in % |
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| Up to 100,000 |
0.15 |
| Over 100,000
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0.20 |
Capital Gains Tax
It is levied at the rate of 20% on gains arising from the disposal of immovable property.
Transfer Fees
Transfer fees are a one-off payment payable to the land registry. The fees are charged on the property’s market value at the date of purchase. The fee is due in cash when the title deeds are transferred into the purchaser’s name.
| Property
Value CyŁ |
Transfer
Fee (% on property value) |
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| Up to 50,000 |
3 |
| 50,001-100,000 |
5 |
| Over 100,000 |
8 |
If the property is placed in joint names eg. The name of a couple or two individuals, then the purchase value is split into two parts which results in reduced transfer fees.
VAT
The VAT rate is 15% as of January 1st 2003. 15% VAT is applied on Real Estate as of May 1st 2004.
Local Authority Tax
Local Authority Taxes are paid to the Municipality and depend on the size and value of the property. It covers refuse collection, sewerage, street lighting etc and it varies according to the area from CyŁ50 – 150 annually.
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