Foreign nationals are entitled to acquire a building or a piece of land up to 2 donums. In some cases the acquisition of up to 3 donums is permitted (1 donum = 1338m2). Property in Cyprus is freehold. After signing the contract of sale, foreigners must apply to the council of ministers for permission to acquire property on the island. This procedure is merely a formality and can be handled easily by yourself or a solicitor of your choice.
Following the settlement of the agreed selling price, the title deeds are transferred to the buyers name as soon as they are issued from the Land Registry.
A solicitor/lawyer who specializes in Cyprus conveyance work would carry out all the legal work on your behalf. A specific conveyance can also be used.
The registered owner is liable for this annual tax (Immovable Property Tax) which is based on the value of his property as at January 1st 1980. Property belonging to individuals valued at up to CY£100,000 (172,515.59 EUR) is exempt from this tax.
A stamp duty of £1,50 per thousand is levied on purchase contacts with a value of up to CY£100,000. ((172,515.59 EUR) ). For any amounts more than this, the rate is 2.00%. This duty is due within 30 days of signing the contract. The payment is payable by the buyer when presenting the contract to the tax authorities for authentication and validation as an official document acknowledge by the government authority. Transfer fees – Property transfer fees are payable once only to the land registry. The amount is based on a sliding scale. The fee is borne by the purchaser and is due when the title deeds are transferred to his name.
CAPITAL GAINS TAX
On disposal of the property, there will be capital gains tax at the rate of 20% on the gain but the first C£10,000 (17,249.96 EUR) will be exempt and there is also an indexation allowance. However there is no tax if the property was acquired between 1st August 1980 and 13th July 1990 with foreign exchange imported into the Republic.