If you’re thinking of purchasing property in Cyprus, you’ll need to understand the taxes involved in the purchase, so here’s a closer look at property taxes.
Cyprus is a very popular relocation destination for so many reasons. Cyprus has one of the lowest crime rates in all of the EU making it a safe environment to live, work and raise a family. There’s a fantastic laid back vibe which is a great stress buster, and of course the climate is amazing all year round. Living in Cyprus is full of advantages, and one of those is that Cyprus citizens have some great tax benefits. If you’re thinking of purchasing property in Cyprus, you’ll need to understand the taxes involved in the purchase, so here’s a closer look at property taxes in Cyprus that may be applicable to your future property purchase…
- Value Added Tax
Value Added Tax, or VAT is payable if you’re buying a brand new property or undeveloped land for the purpose of building. The standard rate of VAT is 19% but you can take advantage of a discounted rate of 5% VAT provided you fulfil certain criteria which are:
If eligible, the 5% rate will be applied to the first 200 square meters of a property, properties larger than this will be subject to the standard 19% rate of VAT for any square meters over the first 200.
- Property Transfer Fees
If you don’t pay VAT, i.e. you’re not buying a new build property, then you will need to pay property transfer fees. This is the fee for transferring the property into your name, from that of the vendor. These fees are dependant on the market value of the property. For the first €85,000 the rate is 1.5%, from €85,000 to €170,000 the rate is 2.5% and over €170,000 the rate is 4%.
- Stamp Duty
Stamp Duty is payable and is calculated based on the purchase price. Anything under €5000 is free from stamp duty. From €5001 to €170,000 stamp duty is set at 0.15% and over €170,000 the rate is 0.2% with a cap at €20,000, the maximum anyone is liable to pay.
- Other ongoing taxes
As a Cyprus resident you will also have some smaller taxes to pay such as local authority and municipality taxes which pay for your waste collection, street lighting etc. and sewerage tax. These fees will differ from area to area so you need to contact the local authorities for exact figures for these taxes.
Find your dream home
Now you understand Cyprus property taxes, you can get on with the fun part of the process, finding the perfect property! Your first port of call should definitely be our website where you can browse a range of the most stunning properties. Whether you’re looking for a compact apartment or a huge villa, you’ll find we have the perfect property for everyone, all built to the very highest standards. So take a look and find your dream forever home today!