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Cyprus property tax real estate advice

Cyprus property tax real estate advice

 

Taxation

 Buying a property in Cyprus requires the client to pay two taxes. The first one is on transferring the ownership right, the so called Transfer Fee, and the second one is the Stamp Duty.Marinos Kineyirou Estate Agencies LTDprovides you with all the details you need concerning real estate taxation.

 

  1. 1.    Transfer of property:

 

  1. a.    The Council Of Ministers Permission

 

In order to transfer title deeds from the developer to the buyer you have to receive permission from the Council of Ministers after submitting the necessary application form.

  1. b.    Transfer

 

The Land Registry Office, a government department, transfers the ownership right from the vendor to the purchaser. In order for the transfer to be completed, it is necessary for the buyer to pay the Transfer Fee which is calculated as follows:

VALUE OF PROPERTY

(EURO)

TRANSFER FEE                                         (%)

Up to 85.430

3%

From 85.431 – 170.860

5%

Over 170.861

8%

Note: The tax is paid only once.

Example:If the purchase price is 250,000 Euro,

  1. A.   and the ownership right is under one name, the transfer fee calculation will be as follows:
The first 85.430 EUR EUR 85.430  x 3% = 2,562.90 EUR
85,430.10 to 170,860.14 EUR EUR 85,430.10 x 5 % = 4,271.51 EUR
Any amountabove170,860.14 EUR EUR 79,139.86 x 8 % = 6,331.18 EUR

TOTAL

=13,165.59 EUR
  1. B.   If the purchase is made in joint names, and it is above 85.430 EUR, then the amount is halved. The calculation will be as follows:
1st Buyer EUR 85,430.10 x 3 % = 2,562.9 EUR
EUR 39,569.9 x 5 % = 1,978.5 EUR
2nd Buyer EUR 85,430.10 x 3 % = 2,562.9 EUR
EUR 39,569.9 x 5 % = 1,978.5 EUR

TOTAL

= 9,082.8 EUR
  1. 2.    Stamp Duty:

The stamp duty constitutes 0.15% up to the value of EUR 170,860. It should be paid within thirty days of signing the contract.

Example:If the purchase price is 250,000 Euro:

The first 170,860 EUR EUR 170,860 x 0.15 %      = 256.29 EUR
Any amount above 170,860 EUR EUR 79,140 x 0.20%      = 158.28 EUR
                     TOTAL                         = 414.57 EUR

%: per thousand

  1. 3.    Immovable Property Tax:

 

Owninga property in Cyprus requires annual payment tax which is approximately 50-250 EYR per year depending on the size of your property.  The property tax is calculated as follows:

Real Estate Price(EURO) Annual Tax (%)
under 170.860 No tax
170.861 – 427.150 0.25%
427.151 –  854.300 0.35%
over 854.301 0.4%
  1. 4.     Capital Gains Tax:

If you want to sell your property you pay 20% of the profit, as required by the Capital Gains tax. Owing a house for five years an 84,430 EUR tax- free allowance is made.

Where to find us:

For any further information and questions please do not hesitate to contact us, we would be more than happy to assist you.

Contact us via:

–  Telephone:  00357 24 65 24 50, 00357 24 81 51 41

–  Mobile: 00357 99 66 57 88

–  Fax: 00357 24 65 81 21

– E-mail:  marinosestates@spidernet.com.cy

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