Introduction:
Cyprus 's investment immigration policy is famous for its simplicity and speed. It has very prominent advantages in purchasing a house immigration throughout Europe immigration . You only need to purchase a property of more than 300,000 euros to obtain permanent residence for the whole family for three generations. , also known as permanent residence card , so what taxes and fees do you need to pay when purchasing local real estate in Cyprus? Today I will give you the answers one by one.
1. Stamp Duty
When purchasing property in Cyprus, the buyer will usually pay stamp duty that needs to be applied on the purchase agreement and related documents. These fees are paid to the Cyprus tax authorities. Details can be found later in the Stamp Duty Calculator.
authorization letter. Most property buyers (as well as sellers) will provide a lawyer with a power of attorney to allow them to be abroad at any time during the transaction and avoid multiple visits to the authorities to sign the necessary forms. The power of attorney also needs to be stamped. The stamp duty is €6 for a general power of attorney and €2 for a specific power of attorney (also called a limited or special power of attorney)
2. Transfer fee
The purchase of a property in Cyprus is completed once the title deed has been registered by the buyer. On the date of title registration, the Land Registry will estimate the market value of the purchased property and charge transfer fees to the buyer. Details can be found in the local transfer fee and stamp duty calculator.
3. Value Added Tax (VAT)
19% Value Added Tax (VAT) only applies to the purchase price of new properties. However, this can be reduced to 5% if the property will be used as the applicant's principal and permanent residence under certain conditions.
4 Other legal fees
There are other smaller costs when purchasing a property, such as submitting a purchase Contract or transfer fees and other due diligence costs.
The transfer fee is paid by the purchaser in order to register the acquired property in his/her name. Conveyancing fees are calculated based on the market value (Land Registry Valuation) of the property at the date of purchase. If VAT is paid on the property, there is no property transfer fee.
Stamp duty is a tax paid by the property purchaser when the property sale agreement is registered with the Land Registry.
Calculation details
Transfer fee
Property value (€) %
Up to 85,000 3
85,001 - 170,000 5
Over 170,001 8
The Cyprus Parliament announced the cancellation or reduction of property transfer fees in the following cases:
1. If the transfer involves an increase VAT transactions, The transfer fee is completely waived
2. If the transaction does not require VAT (such as resale of property), the law provides that 50% of the transfer fee can be waived. The calculator takes this exemption into account.
3. If the property is registered as exclusive property in a company and the transaction involves the purchase of the company/property, the buyer will receive full exemption from transfer fees.
Stamp duty
Property value (€) %
Less than 5,000 people 0
5,000 or more 170,000 or more 0.15
More than 170,001 0.20
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