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Accommodation in Cyprus

Sandy Beach Hotel

Legal / Finance

Property Ownership

The legal system makes property purchase and other legal transactions understandable to most expatriates. Cyprus became a full member of the EU on 1 st May 2004 and the process of purchasing property in Cyprus is very simple.

Non EU Nationals are entitled to a freehold ownership of a villa, an apartment or a piece of land not exceeding 3,000 sqm.

EU Nationals are entitled to a freehold ownership of a villa, an apartment or land. Those that are resident in Cyprus are allowed to buy as much property in Cyprus without restriction and do not need to obtain approval from any authority. To prove residency, an EU National must apply to the District Administration.

EU Nationals who are non resident in Cyprus are permitted to buy as much land as they wish but are restricted to purchase one house or one apartment for which approval from the Council of Ministers is required.

A married couple can only buy one house between them, not one each. (Not applicable for EU Nationals who are resident in Cyprus)

CyprusInvestment Policy is liberal and allows 100% foreign participation in all sectors of the economy, not only for EU Nationals but also for investors from third countries, unless otherwise stated in the legislation; e.g. the acquisition and development of land.

Residential Permit

European Union Nationals can easily obtain residency or a work permit in Cyprus. To do so he will need an original copy of the stamped contract for the purchase of his property or a copy of the Rental Agreement, 4 photos, a copy of the bank statement and £25.00. The permit will be granted for 5 years which is renewable.

Mortgage Finance

More or less all commercial banks in Cyprus offer the same product. A mortgage may be obtained to secure payment of an existing, future contingent liability.

The loan could be in any currency.

It is possible to constitute an unlimited number of subsequent mortgages provided that each subsequent mortgage shall include all properties included in the immediately previous mortgage and no other property.

The amount ranges from 60% - 70% of the sale value of the property with a repayment period ranging up to 20 years depending on the policy of the bank and the currency of the loan. The maximum repayment period for mortgages in foreign currencies to non residents is 10 years.

The registration fee for a mortgage is 1% of the amount secured, plus the relevant stamps.

There are also some house loan schemes offered by Cyprus banks.

The Title Deed

The Title Deeds are transferred to the buyer’s name as soon as they are issued by the Land Registry Department. The procedure can be done either by the buyer or by a third party with a Power of Attorney.

Immovable Property Tax

The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1 st January 1980. The tax is imposed on the value of the whole of the immovable property someone owns, so a Purchaser may have to pay immovable property tax prior to the transfer of the property to his name which can be claimed back with the actual transfer of title deed to his name.

Market Value CYP Annual Property Tax per thousand

Up to 100,000 exempt

100,000 – 250,000 Cyp 2.50

250,001 – 500,000 Cyp 3.50

Over 500,000 Cyp 4.00

Transfer fees

The purchaser will be liable to pay the following transfer fees for the property acquired, when this is registered in their name at the District Lands office. The fees are charged on the property’s market value at the date of purchase.

Value of Property Cyp Transfer Fee Rate % on property value

Up to 50,000 3.0%

50,000 – 100,001 5.0%

Over 100,000 8.0%

Should the property be in joint names the transfer fee of 130,00Cyp will be:

3% for the first 50,000 x2=100,000 Cyp 3,000

5% for 30,000= Cyp 1,500

Total Cyp 4,500

Capital Gain Tax

Capital Gains Tax is payable at the rate of 20% on gains arising from disposal of a property, with the first Cyp 10,000 for each person being except. In addition to this allowance the Vendor is entitled to further allowance regarding the transfer fees paid, and any other expenses for any additions to the property. The subsequent increase in the value of the property due to inflation which is calculated in accordance with the Retail Price Index issued every month by the Department of Statistics will also be deducted.

Gains form the disposal of a dwelling house are exempt up to Cyp 50,000 in total if the Vendor resides in such property for at least 5 years continuously prior to the sale of the property.

A person will be allowed to make use of the above exemptions once only in his lifetime and not for every property he sells unless they have not been exhausted by the first sale in which case any balance would be carried forward.
Stamp Duty

The purchaser is liable for the payment of stamp duty at the rate of 0.15 per cent of the value up to Cyp 100,000.Thereafter the rate becomes 0.20 per cent. The documents should be stamped within 30 days of signing the contract.


Vat on properties has been introduced since 1 st May 2004 on the rate of 15% which is included in the selling price.

Tax Advantages

For expatriates retiring in Cyprus, they have the choice as to the method of taxation. Either they are taxed at 5% over and above CY £2,000 per annum, or if they opt to be taxed as Cypriots, the first CY £10,000 is exempt, for CY £10,000 to CY £15,000 it is 20%, from CY £15,000 to CY £20,000 it is 25% and over CY £20,000 it is 30%.

Duty Free Privileges

Europeans who become permanent residents in Cyprus and were using in their country for at least six months, can bring their car to Cyprus and they will not pay import tax.

Furniture can be imported free of any taxes by Europeans or Non-Europeans who become permanent residents provided that they are for personal use and are not brand new.