Property Buying FAQ's

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Summary of Costs

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.