The legal system in Cyprus is based on the British (Common Law) as well as Greek legal systems as is the Land Registry, which is considered to be one of the most advanced and reliable systems in the world.
Buyers of property in Cyprus, are more secure, with regard to their title deeds, than in perhaps other Mediterranean countries, it offers all relevant Property Transfer fees 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:
From 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.
Immovable Property Tax:
The registered owner of the property is liable for this annual tax which is based on the value of the property. Value Cy £ Annual Tax Pounds per Thousand (%) up to 100,000 exempt 100,001 – 250,000 2.5 250,001 – 500,000 3.5 over 500,000 4.0
Capital Gains Tax:
For foreign owned property that is sold, generous exemptions from capital gains tax exist and details may be obtained from our offices.
Estate Duty / Inheritance Tax:
Estate Duty, which is paid on assets based in Cyprus, provides very generous allowances, which in effect, mean that in most cases nothing or only a small amount is paid. You may also make out your will as a Cypriot Resident, which will exclude you from country of current residence inheritance tax.
The purchaser is liable for the payment of stamp duty at the rate of 1.5 pounds per thousand up to the value of £100,000 CY and thereafter the rate is 2 pounds per thousand. This duty should be paid within 30 days of signing the contract. As an example, a £100,000 CY purchase will mean a stamp duty cost of £150.