Buying property in Cyprus

The acquisition of property in Cyprus by non-Cypriots is regulated by the Immovable Property Acquisition Law and the Directives of the Central Bank.

People who fall into the category of non-Cypriots are those from outside the EU, and those from inside the EU (and legal bodies).

When engaging real estate services, it is worth knowing that only those who are registered with the Council of Estate Agents are allowed to provide estate agent services. You will need to know at least what the market value of a house is when going through the buying process, and for this it is essential to get an expert opinion.

The District Lands Office will calculate trasnfer fee costs, and these are tiered on a percentage basis based on the amount of money that is being spent. At time of writing this was 3% for up to 85,500 Euros then 5% on the next sum of that same amount, then over that 8%.

There is also stamp duty to pay when purchasing property in Cyprus, and an annual tax called an immovable property tax. If you purchase a property in Cyprus, then also consider that you will pay a municipal (community) tax. For those looking to buy and sell property as a business, then when reselling property there will be capital gains tax at 20% on the amount gained, although there are some exceptions to this rule so you will need to get the appropriate expert advice if considering selling up. One thing to note is that inheritance tax does not exist in Cyprus anymore.

When it comes to buying the property, then it is only legally binding when carried out in writing and needs to be signed and registered with a body called the Department of Lands and Surveys. Because of this formal and clear process then the property registration system in Cyprus is considered to be of very high standard.

As with considering buying in any country, it is highly recommended to get expert advice, both legal and financial, when buying property, and also enlisting the help of a relocation agent or at least going through reliable estate agents when researching the property you wish to buy in Cyprus.

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