Cyprus Property For Sale - Taxation in Cyprus
Stamp Duty
Stamp duty is paid by the property purchaseror on completion of the sale contract. It should be paid within 30 days of the contract being signed.
The rates payable are as follows
Up to CY£100,000 0.15% CY£1.50 for every 1,000
Over CY£100,000 0.20% CY£2.00 for every 1,000
For example. a property with an agreed purchase price of CY£150,000 will be dealt with as follows:
Up to CY£100,000 0.15% CY£150
Over CY£50,000 0.20% CY£100
Total stamp duty payable CY£250
Property Transfer Fee
The property transfer fee can be a significant cost to the purchaser. It is payable upon the transfer of the title deed. In cases where the property is a new build, there will be a delay of approximately 3 years or more before the title deed will be issued by the land registry. The transfer fee will be payable at that time based on the value of the property at the time of the purchase.
Note that if a property is purchased jointly by two or more individuals then the cost of the property will be regarded as divided equally. As a result the property transfer fee is that the rate indicated below will apportioned on an individual basis and may significantly reduce the overall fees.
Value of property in CY£
Up to £50,000 3%
From £50,001-100,000 5%
Over £100,000 8%
e.g. A purchase price of £150,000 will be dealt with as follows:
Up to £50,000 £1,500
From £50,001-100,000 £2,500
£100,001-150,000 £4,000
Property transfer fee due £8,000
VAT
New build developments attract VAT, currently at 15%
Capital Gains Tax
On the sale of the property, Capital gains tax (CGT) is payable at the rate of 20% on the gain. The first CY£10,000 per person is exempt. This exemption rises to CY£50,000 if the vendor has lived in the property continuously for the previous 5 years.
Allowances are granted in relation to property transfer fees, inflation and receipted improvements made to the property within certain limits.
Inheritance Tax
This was abolished on the 1st January 2000
NB. We are not international tax advisers and the above information is meant as a guide only. It is based on our understanding of Cypriot taxation and is subject to change. You must not rely on any of the above to make taxation decisions. You should take qualified professional tax advice before making any taxation decisions.
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