VAT - Value Added Tax, one-time payment, paid by the purchaser of the new properties and land. VAT on land and new real estate purchase in 19%.
A reduced rate of 5% can be applied to acquisition or construction of residential property, providing that:
The property is used by the applicant as the principal and permanent residence in Cyprus (minimum for 10 years). There is no time limit for non-Cyprus residents to stay in the country;
The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
The applicant must be an individual, over 18 years old. Legal entities are not eligible for the VAT reduction.
A reduced VAT property cannot be used for rental purposes or any other economic activity.
A buyer pays 19% VAT and after property purchase applies for refund. The application must be submitted before the applicant moves in the dwelling. If the property is under construction (off-plan) the application can be submitted at any time during the construction period.
The reduced VAT rate of 5% applies on the first 200 square meters of the area of the property. In cases of large families the total area is can be enhanced. In the event a VAT reduced property is sold or rented out prior to expiration of a 10-year period, the previously effected VAT refund must to be returned to the state for the remaining years.
VAT on Resale Real Estate in not applicable.
The property ownership transfer fee is a one-time payment, paid by the purchaser of the property. No transfer fees payable for properties with VAT.
3% for property value €0-85,000
5% for property value €85,000-170,000
8% for property value €170,000 and above
50% reduction is applicable to the property ownership transfer fee amount.
Transfer fee calculator is available on the website of Ministry of Interior, Department of Lands and Surveys, here https://portal.dls.moi.gov.cy/en-us/Pages/CalculateTransferFees.aspx
Stamp Duty is a one-time payment, paid by the purchaser of properties and land. Stamp duty is paid within thirty days from the date of co-signing of the property acquisition contract in Cyprus in order to register the transaction in the Inland Revenue Department.
0% for property value €0-5,000
0.15% for property value €5,000-170,860
0.2% for property value €170,860 and above
The maximum amount of stamp duty payable is €20.000 per agreement.
Immovable property ownership tax in Cyprus is not applicable.
Municipality tax is an annual tax paid by the owners, which range from €85 to €500 per year, for garbage collection, sewage, lightning of common areas, etc.
The property seller is paying Capital Gains Tax (CGT) at the rate of 20% on gains arising from the sale of immovable property in Cyprus.