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| Upon finding a property you wish to
purchase, you will need to put down a holding deposit.
A holding deposit on a DND property is around one to three
thousand pounds (Cypriot) and holds the property for around
30 days. |
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Once you have purchased
a DND property we will agree a payment time scale with you and
select an appropriate property completion date.
The first payment will be due around 30
days after you pay your initial deposit. The amount will vary
depending on individual circumstances, but it will generally
be around 25% of the total property price. The outstanding
balance will then be payable to DND in 1 - 3 staged payments,
which become due upon completion of different stages of the
properties development.
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| Mortgages |
| All commercial
banks in Cyprus are authorised to offer mortgage facilities
to assist in the purchase of property. The loan will be
in foreign currency. The amount ranges from 60 - 80% of
the value of the property with easy repayment terms over
a period of up to 15 years. |
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| Property
Tax & Fees |
| The following
section is provided as a guide to the tax & fees that
you may be liable for when purchasing a property in Cyprus.
All information was relevant at the time of print, however,
you are advised to clarify any information provided. |
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Real Estate transfer tax-fees |
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Real Estate transfer tax-fees
are necessary in order to transfer FREEHOLD ownership to the
name of the purchaser. This can be done as soon as the relevant
Government Authority has issued the title deed and the purchase
has been completed. The transferee is responsible for the tax
payment. The rates are on a graduated (cumulative) scale. |
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Value
of property
CY Pounds (CYP) |
Transfer
fee rate
(per hundred %) |
| Up to 50,000 |
3 |
| From 50,000
- 100,000 |
5 |
| From over 100,000 |
8 |
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For example if the purchase price
is CYP 90,000 |
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| Example
One |
| The first |
CYP 45,000 |
3% = |
CYP 1,350 |
| Next |
CYP 45,000 |
5% = |
CYP 2,000 |
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Total: |
CYP 3,500 |
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Should the purchase be made in
joint names
(provided the price is more than CYP 50,000)
the effective value for calculation is halved. |
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| Example
Two |
| The first |
CYP 45,000 |
3% = |
CYP 1,350 |
| Next |
CYP 45,000 |
3% = |
CYP 1,350 |
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Total: |
CYP 2,700 |
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Transfer of ownership takes place
by a simple process of registration at the Land Registry Office
and the issuing of a title deed after completion and delivery.
This can be done either by you personally or by a Power of Attorney
to your solicitor. A prerequisite for registration, in the case
of aliens, is evidence that the property has been paid for with
foreign exchange and approval by the Council of Ministers of
Purchaser's application to buy property in Cyprus. Your lawyer
on behalf of you can take up these formalities. However, before
the registration of the completed property the purchaser should
pay the transfer fees, which are payable to the Land Registry. |
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Stamp Duty |
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The purchaser is
liable for the payment of stamp duty at the rate of CYP1.50
per thousand up to the value of CYP 100,000 thereafter the rate
is CYP 2.00 per thousand.
This should be paid within 30 days of signing the contract.
For example if the purchase price is CYP 150,000
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| Stamp
Duty Example |
| The first |
CYP 100,000 |
1.5% = |
CYP 100 |
| Next |
CYP 50,000 |
2% = |
CYP 150 |
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Total: |
CYP 250 |
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Immovable property tax |
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The annual immovable
property ownership tax is based upon the value of the property.
Certain properties are exempt. |
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Value
of property
CY pounds (CYP) |
Annual
Property tax
(rate per thousand %) |
| Up to 100,000 |
exempt |
| 100,000 to
250,000 |
CYP
2.0 |
| 250,000 to
500,000 |
CYP
3.0 |
| Over 500,000 |
CYP
3.5 |
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Local authority taxes and
rates |
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A rough guide could
be approximately CYP 50 -150 per year depending on the size
of your property. This tax is for refuse collection, street
lighting, sewerage etc. The basic utilities, electricity, water
and telephone are payable individually in accordance with the
consumption and based on a meter reading. |
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Capital Gains Tax |
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On disposal of the
property, Capital Gains Tax will be payable at the rate of 20%
on the gain with the first CYP 10,000 being exempt for each
person. There is also an indexation allowance.
On top of this allowance, the seller is entitled to a further
allowance regarding the transfer fees paid, inflation rate
per year and the cost of any additions made to the house.
Gains from the disposal of a dwelling house are exempt up
to CYP 50,000 in total if the owner resides in it continuously
for at least five years prior to disposal.
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