Taxation in Cyprus

Personal Income Tax
Level of Income Tax Rate % Tax Amount € Cumulative Tax €
0-19.500 0 - -
19.501-28.000 20 1.700 1.700
28.001-36.300 25 2.075 3.775
36.301-60.000 30 7.110 10.885
Over 60.000 35 - -
Transfer Fees

Acquiring the property Title Deed.

When a sale takes place, the transfer of property ownership is a simple procedure which can be done through the Cyprus Land Registry Office. It is usually done in person, or by someone who has on his hands Power of Attorney (a lawyer).

The Council of Ministers’ permission is required for all foreign property purchases; also any foreign purchasers have to provide evidence of the foreign exchange transaction. This is a formality and does not present a problem to respectable foreign property buyers. The contract of sale must be in writing, and to protect the buyer’s rights to the property, the contract needs to be registered at the District Land Registry office within sixty days from the contract date. The new title deed will be registered in the name of the buyer and recorded in the Government archive.

Transfer Fees:
€1 - €85,000 3%
€85,000 - €170,000 5%
€170,000 - 8%

Transfer fee is calculated in the same way as in transactions on the secondary property market, i.e. every time the real estate title is transferred from one owner to another.

No transfer fees are paid in the event of an immovable property transferred that is subject to VAT. In the event where the transfer is not subject to VAT, land transfer fees are reduced by 50%. This exemption is applicable up to 31.12.2016.

Stamp Duty

Stamp duty is paid only once within 30 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. Stamp duty for property purchase in Cyprus constitutes 0.15% when the overall cost is not exceeding €170000 and 0,20% when the amount exceeds €170000.The first €5000 are exempted.

Therefore, while buying property in Cyprus you pay two types of taxes – Transfer Fee (tax on transfer of the ownership right) and Stamp Duty.

Capital Gains Tax

Tax Rates

The gain arising after the deduction from sale proceeds, of the value of the property as at 1.1.1980 or the cost of acquisition after 1.1.1980 adjusted for inflation, is taxed at the rate of 20%.

Lifetime exemptions applicable to individuals for gains from the sale of immovable property are as follows

Any disposal of immovable property

€17.086

Disposal of agricultural land

€25.629

Disposal of private residence

€85.430

Immovable Property Tax

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

The amount of tax you will pay is calculated by the Inland Revenue Office and will be based on the 1980 value of the home and on the names on the “Certificate of Registration of Immovable Property.” Properties valued at less than €12,500 are exempt.

If the same property is registered in two names then the payment will be calculated on half the 1980 value.

Value of property 1.1.1980 Rate % Cumulative Tax
Up to 40.000 0.6 240
40.001-120.000 0.8 880
120.001-170.000 0.9 1.330
170.001-300.000 1.1 2.760
300.001-500.000 1.3 5.360
500.001-800.000 1.5 9.860
800.001-3.000.000 1.7 47.260
Over 3.000.000 1.9 -