Cyprus Property Services

It is widely accepted that buying immovable property is the best investment can anyone make. Cyprus attracts both investors and those looking for a stunning and sunny place to live, work or retire.  The right of ownership of immovable property in Cyprus is very well protected by the Cyprus Constitution and is among others one of the fundamental human rights. Make Valsen Fiduciaries your preffered property services partner today!

The Law

1. Acquisition of property by EU nationals – No restrictions apply for nationals of an EU Member State that reside permanently in Cyprus. Property in Cyprus can be purchased by signing the contract of sale between the vendor and the EU national – purchaser as all restrictions for EU nationals (whether or not resident) have all been lifted by 2009.
2. Acquisition of property by non-EU nationals – Third country nationals (non- EU) or companies or Cyprus companies owned or controlled by non EU nationals are allowed to purchase one of the following for personal use:

• One apartment
• One house
• Building plot or land up to 4012 square meters

3. A permission of the Council of Ministers must be obtain by non- EU nationals to acquire a property in Cyprus and transfer the title deed of that property on their names. This permission is granted more or less as a matter of course to all bona fide purchasers.

Requirements/Conditions/Restrictions:

1. No criminal record of the applicants in their country or in Cyprus
2. Their financial standing is satisfactory (an income of €.25.000.- per annum between the couple is usually acceptable)
3. Transfer of title deed must be completed within a year from the issuing of the permit or within three years in case of constructions of a building on the property.
4. All taxes must be paid in full.
5. For specific property and use only the permit is issued.

The law governing the acquisition of immovable property in Cyprus by foreigners is the Cypriot Acquisition of Immovable Property (Foreigners) Law, Cap. 109 of the Laws of Cyprus (hereinafter referred to as “the Law”), as amended from time to time. The Acquisition of Immovable Property (Aliens) Law 54(I)/2003 came into force on 1/5/2004, the date of Cyprus’ accession to the EU, and brought about some changes to the old policy relating to the acquisition of immovable property.

Application to the District Office

An Application for permission is made to the District Office of the district where the property is situated in accordance to the Acquisition of Immovable Property (Aliens) Law Cap. 109. The following details need to be provided:

• Form Comm 145 duly completed and signed
• The contract of sale
• Curriculum Vitae of applicant (CV)
• Financial Standing of the Applicant (i.e. bank statement)
• Details of the property
• Particulars of the current owner
• The terms of payment
• The way of acquisition (i.e. Freehold, Leasehold, shares in property company etc)
• Copy of the applicant’s passport and of their spouses)
• Marriage certificate in cases where the spouse does not have the same surname as the Applicant.
• Copies of the governmental survey plans

There is no restriction in taking possession of the property in the meantime even though it takes about 2-8 months for the application to be issued.

Application to the Land Registry Office

Application to the Land Registry Office is made to acquire the title deed of the property. The following documents are needed to be submitted with the application:

1. The registration deed of the property.
2. Copy of the District’s Office approval.
3. Evidence of payment of all the property taxes to date.

Applicant must be present at the Land Registry Office otherwise may give Power of Attorney to his lawyer to appear on his behalf.

When application is issued, the title deed will be registered at the name of the buyer. A title deed is therefore the proof of the registration of ownership held in the records of the Land Registry Office.

TITLE DEEDS: includes the name and address of the owner, the location of the property, the city, the share of the owner, the registration number of the property, the plot number, Sheet/Plan, the type of the property (field, house, apartment etc) and the dimensions of the property in square meters.

Transfer fees

The transfer fees payable to the Land Registry depend on the value of the immovable property, not always on the exact amount paid by the purchaser but on the Land Registry’s opinion of fair value for sale and purchase. 
The rates are as follows:

Stamp Duty

A purchase contract must be fully stamped by the Tax Office and then may be lodged in the Land Registry Office for specific performance purposes fully stamped by the Tax Office. The contract should be stamped within 30 days of its signing. The rates are as follows:

1. 1. Contracts: For contracts up to €5,000 there is no stamp duty available.

1. 2. Other taxes
2. Inheritance Tax: There is no inheritance tax in Cyprus
3. Capital Gains Tax: Capital Gains Tax is the tax imposed on gains from disposal of immovable property situated in Cyprus including gains from the sale of shares of companies which own immovable property situated in Cyprus. The capital gains tax is calculated on the balance at the rate of 20%. The first €17.086 (or €85.430 in the case of private residence for at least five years prior to disposal) is exempt. The capital gain is calculated after deducting from the sales proceeds the original cost and any additional expenditure, adjusted for inflation, and any allowable expenses directly related to the disposal of the building such as interest on loan and advertising.
4. VAT (Value Added Tax): The rate of VAT is 19% : Nevertheless, 5 % VAT applies to both EU and non-EU Nationals who purchase property for use as their primary and permanent place of residence.
5. Immovable Property Tax: Tax is imposed on the owner of immovable property in Cyprus as at 1st January every year. It is calculated on the market value of the immovable property on the 1st of January 1980 and is payable by the September in the year