Comark Estates - Buying property
Purchasing a property in Cyprus is relatively simple and the team at Comark Estates are here to make sure that the process is as straightforward and stress-free as possible for you. Comark Estates have the knowledge and experience to put you in touch with the right people at the right stages, ensuring that when you buy a property in Cyprus with us, you can rest assured that we will be with you every step of the way.
Comark Estates have our very own property purchase calculator that calculates the property transfer fee and stamp duty that would be due on your property purchase, based on purchase price. USE THE COMARK ESTATES PROPERTY PURCHASE CALCULATOR.
We have also put together a bite-sized buying guide to summarise some of the main processes, as well as benefits, of purchasing a property in Cyprus:
Permission to buy property in Cyprus:
Cypriots and EU citizens can buy as much land or property as they wish, without restriction and without requiring permission.
Non-EU citizens are entitled to freehold ownership of properties, while offshore entities can buy premises for their business or as a residence for their foreign employees. Permission to buy property must be requested in written application to the Council of Ministers, which is submitted by the purchaser after the purchase agreement is signed. This may sound daunting, but rest assured, this process is more or less a matter of course and permission tends to be granted to all legitimate purchasers. In fact, purchasers may take possession of their property without restriction whilst this application is in process, which normally completes within a reasonable amount of time after signing the contract of sale.
Cyprus Permanent Residence:
Non-EU citizens who purchase property in Cyprus can benefit from an expedited procedure for obtaining a Permanent Residence Permit. This new procedure is not just simpler, it also saves thousands of Euros due to the eradication of transfer fees, so now is the best time to buy property in Cyprus!
Full information on the Cyprus Permanent Residence Permit can be found HERE.
Cyprus Stamp Duty:
Stamp duty is payable on any document which concerns any property situated in the Republic of Cyprus and as the purchaser in a sale of contract you will be liable for this payment, at the following rates:
|The first €5,000
|€5,001 – €170,000
|More than €170,000
VAT and buying a brand new property in Cyprus:
VAT was introduced in Cyprus on the purchase of brand new property since May 2004 when Cyprus joined the EU, and on the purchase of land from January 2018.
Reduced VAT rate on immovable property: following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the purchase of new residential properties, if the following criteria are met:
- The purchased property must be used as the applicant’s primary and permanent residence (for the next ten years).
- The applicant must not have any other immovable property in Cyprus with the reduced VAT rate.
- The applicant must be an individual (not legal entity) 18 years of age and over.
- The immovable property must be purchased for living purposes and not for profit.
The reduced VAT rate of 5% applies to the first 200 square meters of the property (the total area of which not exceeding 275 square meters) according to the architectural plans submitted to the government authorities. On the remaining square meters, the standard rate of 19% is imposed. We can guide you through which covered areas are included and excluded in the classification of ‘total area’.
Transfer Fees and Title Deeds:
The Transfer Fee is the most serious expense over and above the sale price that the purchaser bears, and is currently (at present the Government are offering a 50% discount which is reflected in the figures below), calculated as follows :-
|Up to €85,000
|€ 85,001 – € 170,000
|€ 170,000 and over
*If there are two purchasers buying one property, they will pay less in transfer fees as the value of the property is divided by two, calculated separately and then added together. The same applies for three, four etc purchasers. Use our app to calculate transfer fees.
Title Deeds: if the property you are purchasing has title deeds these will be transferred into your name at the land registry office upon completion of the sale.
Annual property taxes and fees in Cyprus:
There are no Immovable Property Ownership Taxes in Cyprus (this tax was abolished in 2017)
Local Authority Fees
Local authorities charge an annual fee (depending on the size of your property) for community services, sewerage, regular refuse collection et al. These fees are payable to your local municipal authority.
Cyprus Property Lawyers and Cyprus Property Insurance
Comark Estates can guide you to the most reputable and reliable property lawyers (we recommend lawyers in each region according to where you are purchasing your property) and property Insurance companies in Cyprus.
Capital Gains and Inheritance Tax:
Capital Gains Tax at the rate of 20% is imposed on the profit gained from the disposal of a property. The gain is calculated by deducting from the sales proceeds the cost of acquisition (adjusted for inflation), any lifetime exemptions (see below) and any allowable expenses directly related to the disposal of the property such as interest on loan, advertising, legal expenses and real estate agent fees.
There is no Inheritance Tax in Cyprus (this was abolished in 2000).
Disclaimer: The information provided by Comark Estates on this page is for general informational purposes only, and is provided in good faith. Comark Estates are not liable to any changes to this information.