Cyprus Property Taxation

Cyprus Property Taxation

Immovable Property Transfer Fees


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 following fees are payable for the registration of a transfer of immovable property on the market value of the property according to the valuations by the Land Registry Office

Value of Property

Transfer Fee Rate      Accumulated Tax

Euros

 

UP TO 85.430

3%                    Euros 2.563 

 85.431 – 170.860

5%                    Euros 6.835

OVER 170.861

   8%                                          

 

Immovable Property Tax

Immovable Property Tax is levied on the market value of the property as at 1st January 1980 and it applies to the immovable property owned by the taxpayer on 1st January every year. The annual immovable property ownership tax is based upon the value of the property, as it is shown on the table below:

Market Value

Rate                                       Accumulated Tax

Euros

%

UP TO 170.860

Exempt

170.861-427.150

  1. 0.25%                                               Euros 641

427.151-854.300

  1. 0.35%                                               Euros 2.136

OVER 854.300

  1. 0.40%   -------------------    

 

  

Family Transfers

In the case of property transferred to a family company, transfer fees are refundable after five years if the property remains in the company and the shareholders remain the same.

In the case of property transferred from a family company to the shareholders or to their relatives up to third degree relation, one nominal fees are payable.

Transfers of immovable property from a company to a company as part of reorganizations are exempt from transfer fees.

 

Mortgage Fees

On mortgaged loans there is 1%.

Transfer of existing mortgage from one lender to another is only Euros 50.

 

Exemptions: 

-         Agriculture land used as such by its owner

-         Public cemeteries, Churches and other Religious Buildings

-         Public Hospitals, Schools, Buildings owned by the Government

-         Foreign Embassies and Consulates

-         Common use areas

-         Properties under Turkisn occupation or inaccessible on that score

-         Conservation Buildings and Buildings used by Charities

-         Property of a missing person during the administration of such property