BUYING PROPERTY IN CYPRUS

Immovable Property Tax

The immovable property tax is based upon the value of the property on the 1st of January 1980. If the value of the property at that time exceeds € 170.860,14, then the registered owner of the property must pay immovable property tax according to the following scales:
 

Value of property at 01/01/1980 (Euros)	Annual property tax
up to 170.860,14	Exempt
170,860.15 - 427,150.36	2,5 0/00
427,150.37 - 854,300.72	3,5 0/00
over 854,300.73	4,0 0/00

Capital Gains Tax

Capital gains tax is imposed on the gains accruing to any person from a disposal of immovable property. Capital gains tax is imposed at the rate of 20% on the gain.

The following allowances are given:

  a) €17,086.01 personal allowance (can be used only once)
  b) €85,430.07 from the disposal of a dwelling house, provided that the house was the
      main residence of the taxpayer for a total period of not less that five years prior to
      the disposal.

Bank loans to non-residents for purchase of property

The commercial Banks in Cyprus are in a position to examine requests for loan facilities to non-residents for the purchase of immovable property in Cyprus. The loan repayments must be made in foreign currency.

Please Note

The above information has been compiled as a general set of guidelines only and for most of the procedures mentioned it would be advisable to seek legal advice.