Land Registry Department
Permission to buy property
Financing for the purchase of property
Legal costs incurred
Property duties and other costs with the purchase of property in Cyprus
VAT payable on property
Capital gains tax
Annual property tax
Inheritance Tax
Legal safeguards for foreign buyers
Selling your property



Land Registry Department
The Land Registry system in Cyprus was originally based on British standards. It was established during 1875. Throughout the years it has been updated making it one of the most sophisticated land registry systems in the world.

Purchasing property in Cyprus, therefore, is a very straightforward procedure.

Permission to buy property
Permission to buy property must be sought from the Council of Ministers by written application, which must be submitted by the non-Cypriot purchaser after the agreement is signed. However, this permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.

EU citizens that are permanent citizens in Cyprus do not require permission to buy any immovable property. Legal entities established in EU countries that hare their headquarters and registered office in Cyprus, do not require permission to buy any immovable property. Legal entities established in Cyprus and controlled by citizens of the EU require permission to buy immovable property in Cyprus as well as any other legal entities. Cybarco undertakes to submit the application on client’s request at a fee.


Financing for the purchase of property
Yes, you can get financing schemes through all banking institutions in Cyprus. The base rate of interest charged is specified by the Central Bank of Cyprus and currently is 5,5%. Also you can get financing from banking institutions abroad.
Financing schemes for overseas buyers can be made on their local currency and allow repayment periods of up to 10 years or in Cyprus Pounds with repayment period of up to 25 years.


Legal costs incurred
You may request advise from an experienced property solicitor before signing a contract of sale. The fees might range between £800 and £1000, payable on signing the contract, to the solicitor.

Property duties and other costs with the purchase of property in Cyprus
Stamp Duty and Mortgage Fees:
In case of a sales contract the purchaser is liable for the payment of stamp duty at the rate of 1,5 per thousand of the value up to £100.000. Thereafter the rate becomes 2,0 per thousand. The duties and fees are payable upon signing the contract of sale.

Transfer Fees:
The transfer of title can be effected once the Council of Ministers’ permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds.

Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:

Value up to CY£ 50.000	3%
CY£ 50.001 - CY£100.000	5%
CY£100.001 - and over	8%

Transfer fees are charged accumulatively and are payable at the time of issue of title deeds (usually it is 3 – 5 years after final delivery of property). For properties owned by a couple, transfer fees are charged on the 50% of the property value for each, providing an advantage for any property value exceeding CY£50.000.


VAT payable on property
Since Cyprus accession to the E.U., VAT must be paid when buying a house. In cases though were an application for a town permit was filed before the 1st of May 2004, VAT will not be charged.

For projects that the town planning application has been filed after the 1st of May 2004, VAT will apply on the sales price. VAT applied will have two rates, 5% for the first purchase of residence by permanent residents of Cyprus and 15% for any other purchase. For the purchase of land, no VAT will be applied until the year 2007.


Capital gains tax
Should the purchaser decide to sell the property at a later date, Cyprus Law allows the full amount paid for it in foreign exchange may be transferred abroad at the time of resale. The equivalent of the full purchase price and any increase in the value of the property may be transferred immediately. Property sales in Cyprus are subject to capital gains tax at the rate of 20% on the gain, however, the first CY£10.000 of gain are tax-exempt. If a couple jointly owns the property, CY£20.000 of gain are tax-exempt.

When you sell for the first time your private residence of which you were the owner for at least 5 years, then it is tax-exempt up to CY£50.000.


Annual property tax
Immovable Property Tax:
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st of January 1980. This varies according to values between 0 – 4 CY£ per thousand. Average cost is CY£50 – CY£100 per annum, per unit.

Other Property Taxes:
There are taxes 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 CY£50 – CY£150 per annum per unit property.

Inheritance Tax
There is no inheritance tax in Cyprus.

Legal safeguards for foreign buyers
Same as for locals, the contract of sale must be in writing and it is advisable to be registered at the District Land Registry within sixty days from the contract date. This protects the buyer’s rights to the property and provides additional safeguards. Also, when the title deed is issued (2 – 5 years after the completion of the project), it will be registered in the name of Cybarco Ltd and then it will be transferred to the buyer and recorded in the government archives. The government archives are confidential and will not be published or made accessible under any circumstances.

Contrary to some other countries, where the purchase of property is linked with inherent risks, Cyprus has never been involved in the nationalisation of any sector of the economy, or in the expropriation of property owned by non-Cypriots, in line with the government’s efforts to create a favourable climate for such investments.


Selling your property
Provided that you have a valid contract and a purchaser. If the buyer wants to sell the property before the title deeds are issued, the contract between him/her and Cybarco will be cancelled and a new one will be issued between Cybarco Ltd and the new purchaser. Cancellation fees are charged to the seller at CY£1.500, covering cancellation fees and expenses.