FINANCIAL INFO

Acquisition of Property

Under the Immovable Property Acquisition (Aliens) Law Cap 109 no non-Cypriotcan acquire immovable property without prior permission of the Council of Ministers. Such permission is required both on purchase of freehold and on leases exceeding 33 years.  Normally permission is granted, after written application, to bona fide alien individuals to acquire a flat or house or a piece of land for the erection of a house not exceeding two donums.  Permission is usually granted for personal use and not for letting or commercial use. Once permission is granted and the property registered in the name of the alien, there is  no restriction on the alien selling the property or disposing of it by Will.  Furthermore, no permission will be required for the legal heir to have the property transferred into his name.

Sale & Lease

Contract of sale should be deposited in the relevant District Lands Office within two months after the signing of the contract so that the purchaser’s right to pursue the remedy of specific performance in the event of breach can be protected. Leases exceeding 15 years can be registered and registration should be effected within 3 months of the signing of the lease.

Transfer of Title Deeds

Transfer can be effected once permission to acquire has been granted and the Central Bank has certified the import of foreign funds. Transfer fees are payable by the purchaser on the sale price of the current market value.

Exchange Control

With regard to the purchase of immovable property in Cyprus, Central Bank approval is required on the transfer of property to aliens.  Such approval is granted if it can be proved by the applicant that funds for the purchase were imported from abroad.  Note that without the approval, on a subsequent sale, permission to remit the proceeds out of Cyprus will not be allowed.  On the sale of property, exportation of the purchase price will be allowed.

Taxes

Gain tax is levied at the rate of 20% on gains in excess of CYP10,000 arising from the disposal of immovable property by individuals.

Property tax of CYP2.00 per thousand of the market value of the property as at 1 January 1980 is payable annually.   The first CYP100,000 is exempt.

Other Expenses

• Water rates and electricity charges are in accordance with the amount consumed.
• Refuse collection chares vary according to the district and property and may be approximately CYP50 to CYP100 p.a.
• Municipality of village rates are minimal and may be approximately CYP50 p.a.
• In the case of a block of apartments or multiple developments, there is a common expenses charge payable by each purchaser relating to the expenses in maintaining the areas commonly used, e.g. lifts, staircases, swimming pool, central heating, lighting.  This charge varies according to the type of property and the amenities provided and the purchaser should ascertain beforehand the approximate amount  of such common charge from the developer before entering into any agreement.  Generally it is not excessive