YURASIA ESTATES LTD, Cyprus
Law and regulations associated with the acquisition of property in Cyprus
According to the law relating to the purchase of property, non-Cypriots are entitled to acquire an apartment, house or plot of land for the purpose of building of an area of no more than three donums (4.012 m2), but in certain circumstances, a non-Cypriot may be given permission to own property that exceeds these limitations.Non-Cypriots require the authorization of the Council of Ministers for the purchase of property, but this is actually just a formality. The letter of approval may take 6-12 months, but in the meantime there is no restriction in signing a contract and taking possession of the property. But even in the highly unlike situation that the Council of Ministers does not approve the purchasers application, the sales contract obliges us to sign a new contract and transfer the Property to any other person or company the purchaser may nominate. |
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All payments for the purchase of property by non-Cypriots have to be effected by means of foreign exchange imported legally to Cyprus. You must always keep documentary evidence of all money transfers and payments.
According to Cyprus Law the contract exist in written form and it should be registered at the Regional Land Registry Office within two month from the date of signature to guarantee the protection of the legal rights of the purchaser in the event of non-observance of the contract. Once the contract of sale is signed and registered at the Land Registry the ownership rights of the purchaser are protected until the title deeds are issued and transferred to his name. Once registered at the Land Registry, the contract cannot be withdrawn or cancelled and the property cannot be leased, sold, transferred or mortgaged buy anyone but the purchaser.
Provided that the purchaser has the following documents: certificate of Central Bank, sanction of Ministerial Council, contract registration at the Land Registry office and fulfillment of all contractual obligation, the property passes to his name. Usually the process of Registration takes 6-12 months.
Costs associated with the acquisition of property
Stamp
duty
A
stamp duty of 0.15% (CyŁ1.50 per CyŁ1.000) is levied on purchase contacts with
a value of up to CyŁ100,000. For any amounts more than this, the rate is 0.2%
(CyŁ2 per CyŁ1.000). This duty is due within 30 days of signing the contract.
The payment is payable by the purchaser
when presenting the contract to the authorities for authentication and
validation as an official document acknowledge by the government.
Transfer
fees
Property transfer fees are payable only once by the purchaser and are due when the title deeds are transferred to his name.
|
Property |
Transfer
Fees (%) |
Transfer |
Total
Transfer Fees (CyŁ) |
|
Up
to 50.000 |
3 |
1500 |
1500 |
|
50.000-100.000 |
5 |
2500 |
4000 |
|
Over
100.000 |
8 |
- |
- |
Immovable property tax
The registered owner is liable for this annual tax, which is based on the value of his property.
|
Property |
Annual
Tax (%) |
CyŁ
per CyŁ1.000 |
Total
Annual Tax (CyŁ) |
|
Up
to 100.000 |
0 |
0 |
0 |
|
100.000-250.000 |
0,25 |
2.5 |
375 |
|
250.000-500.00 |
0,35 |
3.5 |
1.250 |
|
Over
500.000 |
0,4 |
4 |
- |
Capital
gains tax
Gains from the sale of immovable property in Cyprus are taxed at a 20% rate. However, generous exemptions are given, i.e. net capital gains up to CyŁ50.000 earned from the disposal of a family residence are tax exempt.
Last modified: Íîćìâđè 16, 2005
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