Purchasing Property
The logistics of property purchase by foreigners are relatively simple and easy. Transfer of ownership is accomplished by a simple procedure through the land registry Office, either by the buyer or an appointed third party with a power of attorney.

Taxes & Fees

The transfer fee is the most serious expense over and above the sale price that the purchaser bears and is payable upon transfer of the property to the purchasers name, and is calculated as follows:

Up to £ 50.000 3%
£ 50.000 – £ 100.000 5%
Over £ 100.000 8%
For example if the purchase price is £ 130.000 the transfer fees are calculated as follows:

Property Value Transfer Fees (£)
The first £ 50.000 @ 3% = £ 1.500
The next £ 50.000 @ 5% = £ 2.500
The last £ 30.000 @ 8% = £ 2.400
Total Transfer fees £ 6.400

If there are two purchasers buying one property, the effective calculation is halved.

Stamp Duty

Before the contract is lodged in the Land registry Office for specific performance purposes, it needs to be stamped by the Tax office. The stamp duty must be paid within 30 days of signing the contract to avoid paying penalties.

The Stamp duty is calculated as follows:

Up to £ 100.000 0.15%
Over £ 100.000 0.20%

Immovable Property Tax

This is imposed on immovable property situated in Cyprus per annum and the rates were amended January 2003 as follows:

Up to £ 100,000 0%
£ 100,000 - £ 250,000 2.5%
£ 250,001 -£ 500,000 3.5%
£ 500,001 - above 4%