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Buying in Cyprus

Buying in Cyprus

Buying a property in Cyprus is relatively straight-forward. As in most jurisdictions, such processes are best accomplished with the guidance of a professional and we strongly recommend that potential purchasers engage relevant advisor's prior to bidding. It’s important that you understand how the BidX1 process works and that you have a thorough knowledge of the asset you are interested in purchasing.

 

Permissions

EU Nationals

Cyprus is a member of the European Union and EU nationals can purchase real estate in Cyprus without any restrictions.

Non-EU Nationals

Non-EU nationals will need to secure a permit in order to purchase real estate in Cyprus. Subject to certain criteria, this is generally procedural in nature. If you have any queries about this process, we’d be happy to help, or you can speak to your local advisor.

 

Professionals

There are a number of advisors that you may consider engaging prior to bidding for a property. The below details, for information purposes only, may be helpful:

Lawyers

Most law firms will offer multi-lingual services. The following link offers a list of lawyers in Cyprus:

http://www.lawyersincyprus.com/page/legal-firms-in-cyprus

 

Translators

It is more than likely that your lawyer will speak your preferred language or will be able to introduce you to a local advisor. If you do require translation or interpretation services, there are a number of multi-lingual translators on the island, including the following: 

 

Finance / Tax / Due Diligence / Structuring

The Big Four – KPMG, PwC, Deloitte and Grant Thornton – all have offices in Cyprus and can assist with tax planning, structuring, due diligence etc.

There are also a number of boutique firms offering similar services in Cyprus; please contact our team or your lawyer for more information.

 

Property Management

Once you have purchased a property, you may wish to engage a local property management agent to maintain and/or let the property on your behalf. Amongst others, the following agents provide these services:

Please note that BidX1 provides the above lists of service providers for information purposes only, to assist bidders who may need support. This list is not exhaustive, and is subject to change at any time. None of the service providers listed are endorsed or recommended by BidX1. You should research whether a service provider will be suitable for your needs. BidX1 does not accept any liability arising to any person for any loss or damage suffered through using these service providers or this information.

 

Property Taxes

Purchasers and property owners will have to pay certain tax liabilities in acquiring and / or owning a property in Cyprus.

Transfer fees

Transfer fee rates are determined as a percentage of the property's value. It’s important to note that the value of the property is dictated by the Land Registry, rather than the purchase price. Transfer fees are not applicable if VAT is chargeable on the real estate transaction.

For the Ministry of Interior’s official calculator, please visit the Department of Lands and Survey’s Transfer Fees Calculator. As at May 2019, you can apply 50% discount to results in this calculator.

 

Stamp duty

Stamp duty is paid on signed legal documents concerning assets in Cyprus, and also varies according to the property’s market value.

 

Additional Charges

Property owners must also pay:

  • Annual municipal tax, ranging from approximately €55 to €195, with the amount determined by the surface area of the property based on property values as at 1st January 1980.
  • Local Authority Fees - depending on the size of your property, local authorities charge between €85 – €500 per annum for regular refuse collection, street lighting, sewerage and similar community services.
  • Sewerage Tax – ranging from approximately €165 to €680, with the amount determined by the surface area of the property based on property values as at 1st January 1980.
  • Communal Service fees are payable to local municipal authorities, the charge is minimal (eg. €160 per annum).

 

Capital Gains Tax on the sale of property in Cyprus is 20%. There is no inheritance or gift tax payable on property transfers.

 

Taxation is complex and therefore the above information is indicative only. You should satisfy yourself in respect of any and all taxes payable at time of purchase and acquisition.