02 September 2010
Immovable Property Tax
The annual immovable property tax is imposed on the market value of the property as at 1st January 1980 and applies to the immovable property owned by the taxpayer on 1st January each year.
Market value of property (1/1/1980)(CYP)
Annual Property tax (‰)
up to 100,000
100,001 to 250,000
250,001 to 500,000
Capital Gains Tax
On gains from disposal of immovable property situated in Cyprus, capital gains tax will be imposed at the rate of 20% with the first CYP10.000 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the sales proceeds and the market value of the property as of 1/1/1980.
The seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house.
Gains from the disposal of a private residence are exempt up to CYP 50.000 in total if the owner resides in it continuously for at least five years prior to disposal.
Gains from the disposal of a dwelling house are exempt up to CYP 50.000 in total if the owner resides in it continuously for at least five years prior to disposal.
Stamp Duty on Contracts
The purchaser is liable for the payment of stamp duty on the purchase price of the property at the rate of CYL1.50 per thousand up to CYL100.000 and thereafter at the rate of CYL2.00 per thousand.
This should be paid within 30 days from signing of the contract of sale.
For example if the purchase price is CYPL150.000
first CYP 100 000
next CYP 50 000
Estate Duty tax has been abolished as from the first of January 2000
Local Authority Taxes & Rates
A rough guide could be approximately CYP 50 -150 per year depending on the size of your property.
This tax is for refuse collection, street lighting, sewerage, etc.
The basic utilities, electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.