Cyprus Property Taxes, Fees and Rates

Introduction

Until the end of 2016, the registered owner of the property, was liable to an annual Immovable Property Ownership tax calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the year). Immovable Property Tax was payable to the Inland Revenue Department of the Republic of Cyprus.

Market Value of Property (01.01.1980) (€) Annual Property Tax (%)
up to 40,000 0.6
40,001 to 120,000 0.8
120,001 to 170,000 0.9
170,001 to 300,000 1.1
300,001 to 500,000 1.3
500,001 to 800,000 1.5
800,001 to 3,000,000 1.7
Over 3,000,000 1.9

 

Capital Gains Tax

On any financial gains from disposal/sale of Immovable Property situated in Cyprus, Capital Gains Tax will be imposed at the rate of 20% with the first €17,086 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1st January 1980, the gains are the difference between the sales proceeds and the market value of the property as of 1st January 1980.

The Seller is entitled to a further allowance regarding the Transfer Fees paid, Inflation Rate per year and the cost of any additions made to the house.

Gains from the disposal/sale of a private residence/dwelling house are exempt up to €85,430 in total if the owner resides in it continuously for at least five years prior to disposal/sale.

Stamp Duty on Contracts

The Purchaser is liable for the payment of Stamp Duty on the purchase price of the property at the following rates:

First €5,000

0.00%

€5,001 to €170,000

0.15%

over €170,001

0.20%

This should be paid within 30 days from the signing of the Contract of Sale.

Inheritance tax

Inheritance tax has been abolished and is no longer imposed in Cyprus.

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. Communal Services fees are payable to your local municipal authority.

Municipality Tax

As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1‰ – 2‰. Municipality tax is payable to your local municipal authority.

Sewerage Tax

As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3‰ – 7‰. Sewerage taxes are payable annually to your local sewerage board.