BUYING PROPERTY IN CYPRUS
The procedure in brief
According to Cyprus Law, the purchasers need a written contract of sale, which will be stamped and lodged at the Land Registry Office for specific performance purposes. This gives the purchasers the security of a legal charge over the property, which will remain up until the time of transfer of the title deeds to them. The purchasers must lodge the contract of sale at the Land Registry Office within two months from the date of signing. Otherwise the purchasers will not be able to specifically enforce the transfer of the property to them through the Court, but will only have a claim in damages for breach of contract, in the event that the Vendor fails to transfer title to them.
Non-European citizens and European non-residents of Cyprus must apply to the Ministry of Interior for permission to acquire immovable property in Cyprus.
As soon as the above permissions have been obtained and as soon as a separate title deed has been issued by the Land Registry Office, the purchasers will then be in a position to accept transfer of the title deed into their names.
COMPANIES
Any company that is registered in any member country of the European Union, and has its registered address and/or activities in Cyprus will be allowed to purchase immovable property in Cyprus without having to apply for the above said permissions/permits.
Stamp Duty
The contract of sale must be duly stamped and the stamp duty is 1,5 cent for every CyŁ 10 of the purchase price up to CyŁ 100,000 and 2 cent for every CyŁ 10 of the purchase price above CyŁ 100,000. The stamp duty should be paid within 30 days of signing of the contract.
Transfer Fees
On transfer of the title deed into the name of the purchaser, the purchaser must pay transfer fees to the Land Registry Office.
Transfer fee rates are as follows:
Value of property (Cyprus Pounds)
Transfer fees
up to 50,000 3%
between 50,001-100,000 5%
over 100,001 8%
For example if the value of the property is is CyŁ120.00
On the first CypŁ50.000 3% =1.500
next CypŁ50.00 5%=2.500
next CypŁ20.00 8%=1.600
Total 5.000
However if the purchase is made in joint names ie. a married couple, the effective value for calculation is halved.
Immovable Property Tax
The immovable property tax is based upon the value of the property on the 1st of January 1980. If the value of the property at that time exceeds CyŁ 100,000 then the registered owner of the property must pay immovable property tax according to the following scales:
Value of property at 01/01/1980 (Cyprus Pounds)
Annual property tax
up to 100,000 Exempt
100,001-250,000 2,5 0/00
250,001-500,000 3,5 0/00
over 500,001 4,0 0/00
Capital Gains Tax
Capital gains tax is imposed on the gains accruing to any person from a disposal of immovable property. Capital gains tax is imposed at the rate of 20% on the gain.
The following allowances are given:
a) CyŁ 10,000 personal allowance (can be used only once)
b) CyŁ 50,000 from the disposal of a dwelling house, provided that the house was the
main residence of the taxpayer for a total period of not less that five years prior to
the disposal.
Bank loans to non-residents for purchase of property
The commercial Banks in Cyprus are in a position to examine requests for loan facilities to non-residents for the purchase of immovable property in Cyprus. The loan repayment may be made in foreign currency or in local currency.
RESIDENCE IN CYPRUS- IMMIGRATION
For non Cypriots wishing to stay longer than 3 months in Cyprus, it is advisable to attend at the Immigration Department to apply for a a temporary residency permit.
A written application for permanent residence may be made directly to the Migration Department in Nicosia, but it shouldbe note that such applications take approximately 12-15 months to be granted.
Information prepared by
Haris Kalogirou and Sofia Nicolaidou Kalogirou.
KALOGIROU LAW OFFICE
Mailing Address: P.O.B. 61033, CY8130 Paphos, Cyprus
Telephone No: 00357-26-220808
Fax No: 00357-26-220545
email: info@kalogiroulaw.com
| 
