All properties bought in Cyprus are freehold. EU nationals living in Cyprus are entitled to own as much property as they wish without having to obtain approval from any authority.
Non-EU citizens are entitled to own a villa, an apartment or a piece of land of up to 4,000 sq.m after receiving permission from the Council of Ministers. This permission can be obtained from the District Officers who are authorised to act on the Council of Minister?s behalf. Approval is granted in all bona fide cases.
This may be done from the Cyprus Land Registry Office. Upon transfer of the property, transfer fees, based on the market value of the property, will be charged from the district Land Registry Office as per below:
Value of Property Transfer Fee Rate
Up to £50,000 3%
From £50,001-£100,00 5%
Over £100,001 8%
The purchaser is liable to for the payment of stamp duty at the rate of £1.5 per thousand up to the value of £100,000. Thereafter, the stamp duty is £2 per thousand. This should be paid within 30 days of signing the contract.
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 of Property Annual Tax
Up to £100,00 Exempt
From £100,001-£250,000 2.5
From £250,001-£500,000 3.5
Over £500,001 4.0
* Pounds per thousand
Local Authority Taxes
After These tend to vary between £30 – £100 per year depending on the size of the property and are for refuge collection, street lighting etc.
Double taxation treaties are in force between Cyprus and several other countries such as UK, Germany, Greece, Russia, Yugoslavia etc. For example, this would enable a UK citizen to receive private and public pensions and investment income in Cyprus free for UK withholding tax.
The remittance system that is in force in Cyprus, compares extremely favourably with the tax systems used in other Mediterranean countries.
We strongly recommend that expert advise should be sought before entering into any transaction for acquiring property in Cyprus.