FAQs

When owning property in Cyprus there are running expenses listed below: 

Communal Expenses 

A service charge is applicable for properties for cleaning/ maintaining the building, swimming pool and garden maintenance on a managed development like a complex, apartment building etc. The cost depends on the area of the property (m²), the facilities and services available at the specific development/ complex. The service charge ranges from €50 to €250 every month.  

Municipality / Community Property Tax 

Approximately 0.23% or €50 – €500 per annum on the property’s value.

Sewerage Tax (Local Authority Tax) 

As the owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property. Rates vary from 0,1-0,4‰ 

A rough guide could be approximately € 85 – € 260 per year depending on the size of your property. This tax is for refuse collection, street lighting, sewerage, etc. 

Buildings Insurance

This is provided by our company at no cost until your property is delivered. Thereafter, the property owners need to have buildings insurance in their own name and our company can offer competitive annual premiums. 

Immovable Property Tax 

Immovable property tax has been abolished as of 1 January 2017 

Water 

Water bills are issued quarterly and show a monthly standing charge which varies according to the municipality. If the owner intends to be absent from Cyprus for long periods, it is advisable to arrange to pay water bills by standing order. 

Electricity 

When a new property is purchased a new electricity contract must be established in the owner’s name. Electricity is charged on a bimonthly basis.  

There is an initial connection fee and deposit in Cyprus. Depending on the city and region of the island, the deposit varies. The deposit also depends on the status of the customer. The procedure of transferring the account in your name is within 2 business days. The deposit is refundable assuming the final balance is paid off and disconnection is requested. 

For the owner to transfer electricity in her/ his name are required following documents: Purchase Agreement or Title Deeds, Identity card or Passport and Deposit (the owners are charged on the first electricity bill). 

Transfer of ownership from Vendor to Purchaser is a simple procedure. It can be done through the Cyprus Land Registry Office either by the buyer in person or by appointing a third party with a power of attorney. Certificate of Registration of Immovable property is known in Cyprus as Title Deeds. This formal document is evidence of property ownership. It includes details about the property’s location, size, and its specific reference number. 

Resale properties

Most resale properties in Cyprus have existing title deeds that can be easily transferred from the seller to the purchaser.

New properties

If a property is new (purchased from the developer) then Title Deeds are issued a few years after the completion of the project/property. They are always in the name of the Developer, and then the Title Deed of each unit is transferred to the name of the purchaser.

When purchasing your Contract of Sale is deposited at the Land Registry Department. You the purchaser can prevent the owner/ developer from transferring the property elsewhere or changing it. 

Furthermore, by virtue of a Bank Waiver Letter no burdens, charges or encumbrances can affect your right to seek specific performance after the contract has been deposited with the Land Registry since you are the beneficial owner. 

Under construction properties

For properties that are under construction, there is no title deeds, Therefore the buyer will file the contract of sale to the Land Registry until a title deed for the individual apartment/villa is issued. Real estate transfer fees must be paid to transfer freehold ownership to the purchaser. 

Properties without title deeds

There are existing properties without title deeds in Cyprus. Each individual case has different reasons and causes of the delay. Each needs to be assessed and examined separately. Usually, it involves developers, buyers, banks, central and local government departments. There are procedure that make the whole transaction safe. We advise avoiding any timesaving approaches that others would possibly recommend. 

The reduced rate of 5% applies to contracts that have been concluded from 1st October 2011 onwards provided they relate to the acquisition and/ or construction of residences to be used as the primary and permanent place of residence for the next 10 years.  

The reduced rate of 5% VAT applies on the first 200m2 whereas for the remaining square meters, as determined by the building coefficient, the standard VAT rate is imposed.

The reduced rate is imposed only after obtaining a certified confirmation from the Tax Commissioner.

The eligible person must submit an application on a special form, issued by the Tax Commissioner, which will state that the house will be used as the primary and permanent place of residence. The applicant must attach a number of documents supporting the ownership rights on the property and evidencing the fact that the property will be used as the primary and permanent place of residence. The application must be filed prior to the actual delivery of the residence to the eligible person.

As of 8th June 2012 eligible persons include residents of non-EU Member States, provided that the residence will be used as their primary and permanent place of residence in the Republic of Cyprus.

The documents supporting the ownership of the property must be submitted together with the application. The documents supporting the fact that the residence will be used as the primary and permanent place of residence (copy of telephone, water supply or electricity bill or of municipal taxes) must be submitted within 6 months from the date on which the eligible person acquires possession of the residence.

A person who ceases to use the residence as his primary and permanent place of residence before the lapse of the 10 year period must notify the Tax Commissioner within thirty days of ceasing to use the residence and pay the difference resulting from the application of the reduced and the standard rate of VAT attributable to the remaining period of 10 years for which the property will not be used as the main and primary place of residence.

The private residences must be used as the main and permanent place of residence for a period of 10 years. In addition, persons who have already acquired a residence on which the reduced VAT rate was imposed, can re-apply and acquire a new residence on which the reduced VAT rate will be imposed, irrespective of whether the 10 year prohibition period for using the residence provided or in the legislation has lapsed or not.  

A condition for this to apply is that in case the 10 year period of using the residence as the main and permanent place of residence has not lapsed, the persons must pay back to the Tax Department the difference in the VAT between the standard and reduced VAT rates applicable at the time of the acquisition or construction of the residence.

1. VAT 

Yet, there is no VAT if you are buying resale property (meaning, purchased from a private individual). 

On the other hand, for a new property, a standard VAT rate (19%) applies. Although, a reduced VAT rate ( 5%) is applicable when buying a new residential property.

Reduced VAT (5%)

Applies if:  

• First, the property is used as the primary and permanent residence (for the next 10 years). Important to note, it is NOT allowed to rent/ lease the property for 10 years.
• Second, the applicant has not bought any other residence with a reduced VAT rate (in Cyprus). 
• Third, the buyer must be over 18 years old (therefore, legal entities are excluded).

Equally important, the reduced VAT (5%) is applied to the first 200 square meters of the property. And on the remaining square meters, the standard rate (19%) is imposed.

But if the full 19% VAT has been paid, the purchaser is allowed to rent/ lease the property. 

2. Transfer Fees  

Click this link to the official Transfer Fees Calculator by the Cyprus Department of Lands and Surveys to calculate the exact transfer fees amount.

The amount is based on the market value of the property, moreover:

• If VAT is applicable then NO transfer fees are payable.  
• If a property is NOT subject to VAT the transfer fees are reduced by 50%
• If the property is purchased by 2 (or more) people, this tax drops considerably.  

Registration Process

The transfer of ownership is an easy registration process. The prescribed application form N270 should be completed and submitted in person together with: 

• Title Deeds (registration certificate) of the property. 
• Copy of permission to buy particular property from the Council of Ministers. 
• Written confirmation from the Central Bank of Cyprus that purchase is done by foreign funds. 
• Evidence of payment of all property taxes (sundry municipal/ local authorities taxes and sewerage tax). 
• The contract of sale is duly stamped. 

3. Stamp Duty

After the contract of sale is signed, the purchaser will need to pay stamp duty within 30 days of signing the contract of sale. 

Specifically, depending on the purchase price the following rates apply:

For example: 

If an individual or a couple buys in their joint names a house for €700,000, the taxes will be as follows: 

Individual: 

• Transfer taxes will be:  €24,600 
• Stamp Duty: €1,308 
• Total : €25,908 

Couple (buying on joint names):

• Transfer taxes will be : €21,200 
• Stamp Duty: €1,308 
• Total: €22,508

Yes, you can. Locals and foreigners can buy property in Cyprus. Moreover, it is an easy and simple procedure compared with other EU countries. Cyprus welcomes foreign nationals. 

1. EU citizens have no restrictions. EU citizens can register an unlimited amount of properties.
2. Non-EU citizens can buy an apartment or a house, or a plot of land (not exceeding 4.014 sq.m). Also, if it is a plot of land, a residence must be built for purpose of owner-occupation. 

• In addition, Non-EU citizens may also be able to buy a second home depending on the type and use of it.

Equally important, usually, non-EU citizens receive permission to buy the property of their choice. This procedure is merely a formality. 

Title deeds

In Cyprus, all properties acquire title deeds a few years after completion (issued by the Cyprus Land Registry Department). 

Therefore, under-construction properties have no title deeds. The buyer will file the contract of sale to the Land Registry. This way the ownership will be safeguarded until a title deed for the individual apartment or house will be issued.

Real estate transfer fees will need to be paid to transfer freehold ownership to the purchaser.

The Immovable Property Acquisition (Aliens) Law and the Directives of the Central Bank of Cyprus regulate the acquisition of property in Cyprus.

To buy a property in Cyprus is a simple and straightforward procedure (less than 1-3 months).

Main steps of buying a property in Cyprus:

1. First, choose your new home from our diverse property collection.
2. Second, we recommend using a lawyer to assist with due diligence and contracts. As agents, we also provide sales agreements and assistance, however, lawyers have special access to property information (to ensure your property is free of mortgages etc.)
3. Third, reserve your chosen property by signing an agreement and paying a deposit. Depending on the type and status of the property the reservation deposit is 5-10%. It is a part of the first payment and deducted from the contract price.
4. When your lawyer is ready with all documents, a property sales contract is signed. Correspondingly it will state the agreed timings and payment procedure.

After the sales contract is signed

5. Usually 1-4 weeks (after the sales contract is signed), a buyer will need to pay a 30% down payment of the value of the property (using your own funds). The balance will be either from individual funds or a bank loan.

6. For loan applications the buyer will need to bring recent bank statements, income statements and other documents.

Generally, (depending on the buyer’s individual circumstances) the bank approves a 20% deposit. (Interest-only loans are also available but local banks are very selective. Depending on the buyer’s age the length of the loan may be up to 40 years).

7. Furthermore, the lawyer will arrange payment of the stamp duty fees and will submit the sale agreement to the Land Registry to safeguard your rights as owner. (if applicable: lawyer submits reduced VAT rate application to the Authorities).

Of course, if the selected property is at its early stages of development or off-plan you will have the option to select the finishing materials and fittings.

8. A payment schedule is completed if a ready property was chosen (or agreed upon based on construction progress).

9. Electricity and water connection (if a property is completed).

10. Title deeds transferred/issued (on completion of the project)

As agents, we introduce all parties and assist throughout the transaction process. Usually, lawyers in Cyprus charge 1% of the selling price or between €1,000 – 2,000 (depending on the value of the property).

For most people, the property is the biggest purchase in their lifetime therefore you should ensure that your interests are safeguarded.