Restrictions

After the entry into the EU restrictions of property have been lifted.  Now any European citizens who are permanently residing in Cyprus (more than 185 days per year) are allowed a property without any restrictions. As well it is not necessary to apply to the Council of Ministers for a permit. Cypriots or persons of Cypriot origin can purchase property without any limitations.

Approval by the Council of Ministers

Where necessary the application form should be completed and submitted to the District Officer in the district where the property is situated. This application will usually be prepared and submitted by your lawyer.

The following is the main information required for completing the prescribed form:

• Personal details of the applicant and their financial standing
• Particulars of the property
• Particulars of the present owner of the property, the sales contract and terms of payment
• The method of acquisition, whether freehold, by share
• Etc...

Specific Performance (Districts Land Office)

If you buy property that is not transferred immediately on to your name, you should deposit your contract with the Districts Land Office within two months from the date of signing. If you do not deposit the contract and the seller changes their mind about the sale, your only remedy for the breach is damages, whereas if you deposit you contract you can resort to the Law. The depositing of the contract also acts as a charge on the property.

Stamp duty:

The purchaser is liable to pay the payment of stamp duty at the rate of 0.15 % of the market value of the property up to CY£100.000 and 0.20% for over CY£100.000. The contract should be stamped within a period of 30 (thirty) day’s from signing. This stamp must be paid before depositing the contract to the land registry for specific performance purposes (see Specific Performance – District Lands Office)

Transfer Fees

The purchaser will be liable to pay the following transfer fees for the property acquired, when this is registered in their name at the Districts Lands office. The fees are charged on the property’s market value at the date of purchase.

Value of Property C₤	Transfer Fee Rate % on property value
Up to ₤50,000	3.0 %
₤ 50,001 – 100,000	5.0 %
Over ₤100,000	8.0 %

Immovable Property

The registered owner of the property is liable to pay an annual immoveable property tax calculated on the market value of the property as of 1 January 1980.

Market Value C₤	Annual Tax %
Up to ₤100,000	Zero
₤100,001 - ₤250,000	0.25 %
₤250,001 - ₤ 500,000	0.35 %
Over ₤500,000	0.40 %

Value Added Tax (VAT):

As of May 1st 2004, the supply of immovable property is subject to VAT (Value Added Tax), which is calculated at a rate of 15% of the value of the property.
However, VAT is charged on property before its first use, as well as on the land on which such property is built. VAT exemptions apply on some cases.
Transitional provisions provide the exemption of buildings for which a valid application for planning permission was submitted before May 1ST 2004.

Related Links:

Department of Lands and Surveys:   http://www.moi.gov.cy/moi/dls/dls.nsf/dmlindex_en/dmlindex_ en?OpenDocument