| Buying in Cyprus This page contains
all you need to know about the costs and legal procedures for buying land or property here in
Cyprus. If you have any other questions of queries, please Contact us.
Property taxes & fees
Legal system
Property ownership
Approval to buy
Selling
Low taxation
Banking
Title Deeds
Property taxes/fees
Property Transfer Fees : these are necessary in order to transfer FREEHOLD ownership to your
name. This can be done as soon as the relevant Government Authority has issued the title deed
and the purchase has been settled.
The Property Transfer Fees are payable once only to the Land Registry Office according to the
following scale:
Value of Property CY₤ Transfer fee Rate
Up to 50,000 3%
From 50,001 - 100,000 5%
From over - 100,000 8%
For example:
Purchase price CY₤ 85,000
1st CYP 50,000 3% = CYP 1500
Next CYP 35,000 5% = CYP 1750
TOTAL CYP 3250 = 3,82%
Local Authority Taxes (Rates): These are between 30-100 CY₤ per annum depending on the size of
the property and are for refuge collection, street lighting, etc.
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Legal system
The legal system in Cyprus is based on the British as well as Greek legal systems as is the
Land Registry, which is considered to be one of the most advanced and reliable system in the
world.
Purchasers of property in Cyprus, therefore, will be far more secure, with regard to their title
deeds, than perhaps they might be in other Mediterranean countries.
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Property ownership
Compared to many countries Cyprus has flexible property buying procedures.
A non-Cypriot is entitled to FREEHOLD ownership of a villa, apartment, or a piece of land of up
to 4,000 sq.m.
International business units may also acquire premises for their activities or for residence of
their foreign employees.
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Approval of the council of ministers
Having signed a contract of sale for your property, it will be necessary to make an
application to the Council of Ministers to grant its approval for a non-Cypriot to acquire
immovable property.
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Selling your property
In case of selling property, foreigners are allowed to repatriate the funds immediately to
the value of the purchase price (including any amounts spent on improvements and/or additions to
the property).
Profits can also be repatriated.
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Extremely low taxation
Cyprus is unique when it comes to the taxation aspects of living on the island.
Cyprus has double taxation treaties with: Austria, Bulgaria, Canada, China, Czech Republic and
Slovakia, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait. Norway. Poland.
Romania, Russia, Sweden. UK, USA and Yugoslavia. Furthermore there are negotiations for the
ramification of treaties with Egypt, Malta, Syria, Belgium, Finland and the countries comprising
the Commonwealth of Independent States. The main purpose of these treaties is the avoidance of
double taxation of income earned in any of these countries.
For example. UK citizens may take advantage of the Double Taxation Treaty existing between the
UK and Cyprus. This enables you to receive private and public pensions and investment income in
Cyprus FREE of UK withholding tax.
The remittance system compares extremely favourably with the tax system used in many other
countries including popular sunspots like Spain.
Recent tax reforms sharply reduce the tax burden and foreign residents are now taxed on a flat
basis of 5% per-annum on pension income over ₤2000. There is 0% on investment income (i.e.
dividends & interest) brought into Cyprus. In special circumstances exemptions totaling up to
CYP 4,000 per person or CYP 8,000 per married couple may apply.
Consequently, the total tax burden on alien residents is in practice often only 3%. This
compares extremely favourably with competing destinations where property owners are subject to
high tax exposure levels of up to 60%.
Insurance pensions can be paid to retirees in Cyprus on a similar tax-free basis, and are
index-linked by virtue of the Reciprocal Agreement, compared to their "frozen" status in other
overseas destinations.
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Banking Standard
The banking system in Cyprus closely follows the British pattern. The banks, having many
convenient branches are efficient, modern and well equipped with the latest technology.
Non-Cypriot citizens may open both foreign and local currency accounts. Many international banks
have branches in Cyprus.
Major credit cards, such as Visa and MasterCard are widely used. Transactions and payments are
simply made through your foreign deposit account.
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Do the properties have title deeds?
Properties have title deeds. The title deeds are transferred to the buyer's name as soon as
they are issued by the Land Registry Department and following the settlement of the agreed
selling price, and the Council of Ministers approved.
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