THE PROPERTY REGISTRATION PROCESS IN CYPRUS

Unlike other countries, the process of property registration in Cyprus is fairly simple. 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 2,675 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 purchaser's 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.

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 months from the date of signature to guarantee the protection of the legal rights of the purchaser. 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 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 Once registered at the Land Registry, the contract cannot be withdrawn or cancelled and the property cannot be leased, sold, transferred or mortgaged buy anyone but the purchaser.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 fulfilment of all contractual obligation, the property is registered to his name. Usually the process of registration takes 6-12 months.

COST ASSOCIATED WITH THE ACQUISITION OF PROPERTY

Stamp duty

A stamp duty of 0.15% (CYP1.50 per CYP1.000) is levied on purchase contacts with a value of up to CYP100,000. For any amounts more than this, the rate is 0.2% (CYP2 per CYP1.000). 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 acknowledged 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 Value (CYP)	Transfer Fees (%)	Transfer Fees (CYP)	Total Transfer Fees (CYP)
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 Value (CYP)	Annual Tax(%)	CYP per CYP1.000	Total Annual Tax(CYP)
Up to 100.000	0	0	0
100.000-250.000	0.25	2.5	375
250.000-500.000	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 CYP50.000 earned from the disposal of a family residence are tax exempt.

Other expenses

Electricity - Depending on consumption (Usually CYP100 - CYP200 annually)
Water - Depending on consumption (Usually CYP30 - CYP50 annually)
Refuse collection - (Usually CYP30 - CYP50 annually)
Common expenses (in the case of apartments) - (Usually CYP100 - CYP200 annually)

Disclaimer

We have done our best to provide you accurate and up to date information but please note that our company does not take any liability for what is stated on this page and that law, regulations and figures may change at any time without any prior notice.