Cyprus Property Taxation
Immovable Property Transfer Fees in Cyprus
When purchasing real estate in Cyprus, understanding the immovable property transfer fees is crucial. These fees are necessary to transfer freehold ownership to the purchaser's name. Once the relevant Government Authority issues the title deed and the purchase is complete, the transferee is responsible for paying the transfer tax.
Cyprus Real Estate Transfer Tax
The Cyprus real estate transfer tax is calculated based on the market value of the property as determined by the Land Registry Office. Here is a breakdown of the transfer fee rates:
| Value of Property (Euros) | Transfer Fee Rate | Accumulated Tax |
|---|---|---|
| Up to 85,430 | 3% | €2,563 |
| 85,431 – 170,860 | 5% | €6,835 |
| Over 170,861 | 8% | Varies |
Cyprus Immovable Property Tax
The immovable property tax in Cyprus is levied on the property's market value as of January 1, 1980, and applies to property owned by the taxpayer on January 1 each year. The annual property tax rates are as follows:
| Market Value (Euros) | Rate | Accumulated Tax |
|---|---|---|
| Up to 170,860 | Exempt | N/A |
| 170,861 – 427,150 | 0.25% | €641 |
| 427,151 – 854,300 | 0.35% | €2,136 |
| Over 854,300 | 0.40% | Varies |
Family Property Transfers in Cyprus
For property transfers to a family company, transfer fees are refundable after five years if the property remains within the company and the shareholders remain unchanged.
- Transfers from Family Companies: When property is transferred from a family company to shareholders or relatives up to the third-degree relation, nominal fees are payable.
- Company Reorganizations: Transfers of immovable property from one company to another during reorganizations are exempt from transfer fees.
Mortgage Fees in Cyprus
When dealing with mortgaged properties in Cyprus, a fee of 1% applies to mortgaged loans. For transferring an existing mortgage from one lender to another, a flat fee of €50 is charged.
Exemptions from Property Transfer Fees
Certain properties and situations are exempt from transfer fees, including:
- Agricultural land used by its owner
- Public cemeteries, churches, and other religious buildings
- Public hospitals, schools, and government-owned buildings
- Foreign embassies and consulates
- Common use areas and properties under Turkish occupation or inaccessible
- Conservation buildings and those used by charities
- Property of missing persons during administration
At Fox Realty, our expert team is here to guide you through the process of purchasing property in Cyprus, ensuring you understand all relevant taxes and fees. Whether you're investing in Limassol properties or Paphos properties, we provide the expertise and support you need to make informed decisions.
Contact us today to learn more about our services and how we can assist you with your Cyprus property investment.