Non Cypriot Buyers are entitled to a freehold ownership of a villa, an apartment or a piece of land with a maximum limit of 4,014m2.

Mortage Facilities

All commercial banks in Cyprus are authorized to offer mortage facilities. The loan will be in foreign currency. The amount ranges from 60% to 80% of the property value, with a repayment period of 7 to 10 years.

Title Deeds

Transfer of ownership from vendor to Purchaser is undertaken through the Cyprus Land Registry office either by the buyer in person or by appointing a third party with power of attorney.

Transfer Requires two permits:

• From the council of Ministers
• From the central Bank of Cyprus

Property Taxes

1. Real Estate Transfer Tax
   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 deeds and the purchaser has been completed. The transfree is responsible for the tax payment, The rates are on a graduated scale.

   Up to 50,000CYP 3% per 100CYP
   From 50,001 to 100,000 5%per 100CYP
   over 100,000 8% per 100CYP
   Should the purchase be made in joint names (provided the price is more than 50,000CYP) the effective value for calculation is halved.

2. Immovable Property Tax
   The annual immovable property ownership tax is calculated on the market value of the property as at 1st January 1980.

   Up to 100,000CYP - Exempt 100,001 - 250,000CYP - 2% per 1000CYP 250,001 - 500,000CYp - 3% per 1000CYP 500,001 and above - 3.5% per 1000CYP

   Value Added Tax

   Real Estate is excluded from Value Added Tax

   Capital Gains Tax

   On disposal capital gains tax will be payable at the rate of 20% on gain with the first 100,000CYP being exempt for each person. There is also an indexation allowance. Gains from disposal of property are exempt up to 50,000CYP in total if the owner resides in it for at least five years prior to its disposal.

   Stamp Duty

   The purchaser is liable for the payment at a rate of 1.5 pounds per thousand up to the value of 100,000CYP and thereafter at a rate of 2.0 pounds per thousand. This should be paid within 30 days of signing the contract.

   Estate Tax

   This has been abolished

   Local Authority Tax/Rates

   As a rough guide between 50-150CYP per year depending on the size of your property. Utilities, electricity, water and telephone are payable individually in accordance with the usage and based on water meter reading.

   Tax Advantages

   Retirees drawing a pension are exempt from all withholding taxes at source and may be taxed at a nominal rate of 5% or less depending on income after a generous allowance (currently 6000CYP per person) Additionally, Cyprus has doubled taxation treaties with many European countries, safegaurding its residents from paying taxes in both countries. This gives citizens of those countries the option to take advantage of the low rate of tax in Cyprus.