Taxes and Transfer Fees

For those buildings for which an application for a town planning permit was submitted prior to the 1.5.2004 no VAT is charged in the event of a sale. For those after the above date, a VAT of 15% is charged (no VAT is charged on land/building plots for purchase prior to 1.1.2008).

In case of a house purchase which is classed as the main/permanent resident of the purchaser, and provided that it is not larger than 250m2, the VAT is refunded up to 10% (out of the 15%). This means that the VAT must be fully paid and then the authorities will require proof that the applicant is using the property as his main/permanent residence (with the production of water/EAC/CYTA bills, payment of taxes etc..).

The registered owner of a property is liable to an annual immovable property tax calculated on the market value of the property as on 1st January, 1980.

The following documents are required to be submitted in order for the property to be transferred to your name as a purchaser.

1. Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported into Cyprus.
2. The sale contract.
3. The Ministerial Council’s permission for the property.
4. The property title deeds, if available.
5. Confirmation that all taxes for the purchased property (sewerage, immovable property, town taxes etc..) have been paid.

Transfer fees are paid on the value that the Land Registry department determines that it is the Open Market Value of the property on the day of the original transaction / sales contract.

Transfer rates are as follows:

  Property Value in Euro          Fees %     

           Up to -   85,430.00           3%             
  85,431.00 - 170,860.00           5%            
170,861.00 - and over                8%            

A power of Attorney can be issued to a third party to attend and conclude the transfer on the buyer’s behalf. There is a transfer fee advantage if the property is registered in the name of the two spouses (husband + wife) as the total purchase price is divided by two, thus lowering the rate of the transfer fee.

The transfer of immovable property into a purchaser’s name can be effected once permission to acquire the property has been granted from the Council of Ministers/Pertinent Authority (where that is necessary – see point 3 above). When registering the property under his/her name at the District Land Office, the purchaser will be liable to pay the transfer fees, calculated according to the property’s market value at the time of signing of the contract.