Property Buying FAQ's

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Rules & Regulations

Purchasing property in Southern Cyprus is very straight forward compared to many other European countries. Cypriot law permitted a non-Cypriot to own one villa or apartment freehold, but since joining the EU this restriction has been relaxed in accordance with EU stipulations. The legal process is similar to that of England, with the security of having a central land registry. When you have signed the contract of sale and paid a deposit, your solicitor should register the contract with the land registry office straight away. This is irrevocable and prevents the vendor from re-selling, transferring or mortgaging the property to anyone else. It is wise to use a completely independent solicitor from the vendors to ensure there is no delay in registering your contract. You can find reputable solicitors details in the Financial and Legal Services section of the WOWCyprus site.

At this stage you will have to pay stamp duty (1.5% up to CYP?100,000 and 2% thereafter) within 30 days of together with your solicitor's fees. People are often confused with when title deeds are issued and transferred to your name. This may take some time (years in many cases) if you are purchasing on a large development as the transfer is unlikely to take place until the whole development is complete - not just your property.

When the title deeds are issued and transferred to your name, you will have to pay Property Transfer Tax. This is currently 3% up to CYP?50,000, 5% from CYP?51,000 to CYP?100,000 and 8% thereafter. For joint purchasers this is divided equally, so the allowances will save you money. There is currently much lobbying since VAT was introduced on new build homes to reduce this tax.

As for running costs, there is an Annual Property Tax on properties valued at over CYP?100,000. You will pay 2.5% on CYP?100,001 to CYP?250,000, 3.5% on CYP?250,001 to CYP?500,000 and 4% thereafter. This again may be reviewed since Cyprus has joined the EU and VAT introduced on new build properties.

On any disposal, Capital Gains Tax will be payable at the rate of 20% on the gain with allowances of CYP?10,000 per person - unless the owner resides in it continuously for at least 5 years prior to its disposal. You can also deduct Property Transfer Tax and an inflation allowance to reduce the taxable gain.

You should check the current position on all of the above information as, since joining the EU, Cypriot laws are changing all the time.

For further information email info@wowcyprus.com