:: Associated Costs ::
Tax & Duties
Immovable Property Tax
The registered owner is liable for this annual tax which is based on the value of his/her property as of 1st January, 1980. Property with a value of up to CY£100,000 is exempt from property tax. For property values exceeding this amount the rates are:
| Taxable Value CY£ | Annual Tax (% on Taxable Value) |
| Up to 100,000 | Nil |
| 100,001 - 250,000 | 0.25% |
| 250,001 - 500,000 | 0.35% |
| Over 500,000 | 0.40% |
Stamp duty
A one-off stamp duty is levied on the purchase of property in Cyprus. The rates are dependent on the contractual purchase amounts and payment is due within 30 days of signing the Sale Agreement. The amount is payable by the purchaser to the tax authorities.
| Purchase Price in CY£ | Stamp Duty in % |
| Up to 100,000 | 0.15 |
| Over 100,000 | 0.20 |
Capital Gains Tax
It is levied at the rate of 20% on gains arising from the disposal of immovable property.
As a general rule, the gain is the difference between the sales proceeds adjusted by a cessation allowance, less the original cost of the property, capital improvements and transaction costs of the sale. Generous exemptions also in place, e.g. net capital gains up to CY£ 10,000 earned from the disposal of your residence.
Estate Duty / Inheritance Tax
These were abolished as of 1st January, 2000.
VAT
The VAT rate is 15% as of January 1st, 2003. 15% VAT is applied on Real Estate as of May 1st, 2004.
Local Authority Tax
Property taxes levied by the local authorities are in the range of CY£ 30.00 - CY£ 100.00 p.a., depending on the size of the property. The tax covers the cost of refuse disposal, street lighting, etc.
Communal Expenses
Communal expenses cover an owner's share towards the cost of cleaning and maintaining a project's communal areas, gardens, swimming pool, management fees and repairs. These are payable at fixed intervals throughout the year and vary from development to development and from property to property. They are estimated to be in the region of CY£ 400.00 p.a.
Electricity & Water Supply
Utility bills for these services are payable to the appropriate authorities at fixed intervals throughout the year. They comprise a small standing charge and the individual consumption per household. For electricity this is CY£ 1.65 every 2 months plus 5.5 cents per kW/hr. Whilst the cost per property will vary, a rough guide for both might be approximately CY£ 300.00 p.a.
