BUY CYPRUS INVESTMENT PROPERTY!
Table of Contents
Invest in Cyprus Property, in 2023!
Cyprus is one of the top property destinations for foreign Investor buyers and
the leading EU country for High Net Worth Immigration for the Cyprus Residence
Permit Programme (Golden Visa). Recently, High Net Worth Individuals have made numerous
applications for foreign direct investment in Cyprus. Foreigners are continually buying property in
Cyprus, which is attributed to many factors, including: the low cost of living, the high quality
lifestyle, the favorable policy to obtain permanent residence through the
acquisition of real estate and Cyprus is one of the leading destinations for
In 2023, there has been an increasing demand for purchase of Cyprus properties and
market activity has caused local property values to show a steady and at times
sharp appreciation, but this trend has reduced. Good properties are still in
abundance, and local property prices are still much lower than those of other
European countries, such as France, Portugal and Spain. Moreover, Cyprus properties
offer excellent value for money. Contact our Cyprus Immigration Consultants and Lawyers by telephone or
visit us in our offices in Brisbane, Australia, Singapore, Hong Kong, London, UK and Lisbon, Portugal.
Cyprus Legal System
The legal system in Cyprus is mainly based on
the British equivalent and safeguards the purchaser's rights in many ways.
For the purchaser's protection, once the agreement of property sale has been
signed and a deposit paid, the Land Registry in Cyprus provides a simple and
effective legal instrument called the "Specific Performance". This
procedure protects the purchaser's ownership rights until the title deeds are
issued and transferred to their name. The contract in the hands of the Land
Registry cannot be withdrawn by anyone; and therefore, the property cannot be
leased, sold, transferred or mortgaged. This status can only be altered by the
Stamp Duty in Cyprus
A one-off stamp duty is levied on the purchase of
property in Cyprus. The rates are dependent on the contractual purchase amounts and
payment is due within 30 days of signing the Sale Agreement. The amount is payable
by the purchaser to the tax authorities.
Purchase Price in €------Stamp Duty in %
- Up to 5,000------------0
- 5,001 - 170,000-------0.15
- Over 170,000----------0.20
Note: Maximum Duty €20,000
Property Transfer Fees in Cyprus
The purchaser will be liable to pay the following
transfer fees for the property acquired, when this is registered in his/her name at
the Land Registry Office. The fees are charged on the property's market value
at the date of purchase.
Property Value in €-----%
- Up to 85,000-----------3
- 85,001 - 170,000------5
- Over 170,000----------8
(The rates above apply per person)
1.Transactions that are subject to VAT
- Exemption from transfer fees. VAT
is charged at the standard rate of 19% where a reduced rate of VAT (5%) has been
introduced for properties purchased by permanent residents of Cyprus, provided that
the property will be used as the main residence of the purchaser for a minimum of
2.Transactions not subject to VAT
- The legislation provides for an
exemption of 50% of the transfer fees. This applies to transactions where transfer
fees apply or are due and the transfer relates to plots of land, buildings or
interests in land or indivisible interests that are sold for the first time
from the date of issue of the relevant building permit and the relevant contract is
prepared and submitted for the first time to the local District Land Registry
during the period of application of the law.
Cyprus Property Taxes
1. Cyprus Immovable Property Tax
- Immovable Property Tax was abolished as
from 1 January 2017. Until tax year 2016, the owner of immovable property situated
in Cyprus was liable to pay an annual IPT which is calculated on the market value
of the property as at 1 January 1980, at varying rates, which apply per owner and
not per property.
2. Capital Gains Tax
- Capital Gains Tax is levied at 20% on gains arising
from the disposal of property by each individual person. The gain is reduced by an
indexation allowance that considers the inflationary increase over the years the
property was owned. Non-residents are only taxed when selling property situated in
The following allowances are available to individuals:
3. Inheritance Tax
- The first €17,086 of gains arising from the first disposal of any
property in Cyprus.
- The first €85,430 of gains arising from the disposal of a house used by
the owner for his/her own habitation. This allowance can only be claimed
- An individual claiming a combination of the above allowances in only allowed
a maximum allowance of €85,430.
- Inheritance Tax (Succession tax) has been
abolished with effect 1 January 2000 and is no longer imposed. See VisaConnect's
PDF document: Cyprus Tax System in
4. Local Authority Tax
- Property taxes levied by the local authorities are
payable annually and may vary, depending on the size of the property. The tax
covers the cost of garbage disposal, street lighting, etc.
5. Communal Expenses
- Communal expenses cover an owner's share
towards the cost of cleaning and maintaining a project's communal areas,
gardens, swimming pool, management fees and repairs. These are payable at fixed
intervals throughout the year and vary from development to development and from
property to property.
6. Corporate Tax
- Low corporate income tax rate of 12.5%, EU & OECD
7. Non-Domiciled Individuals
- No tax on dividends, interest and rental
income of non-domiciled individuals.
8. Foreign Income
- Foreign tax relief on income subject to both Cypriot and
overseas tax. In addition, there is an exemption on profits of foreign permanent
establishments (subject to conditions).
Cyprus Residency by Investment
For information about the
Cyprus Residency by Investment - Residence Permit, eligibility criteria, and how
our Immigration Consultants can assist you, click on the following VisaConnect