Legal Safeguards

With Cyprus now a member of the EU, EU citizens are entitled to own one property or a piece of land up to 4,000 square metres.

The legal system in Cyprus is largely based on the British equivalent and safeguards the purchaser's rights.

Once the sales agreement has been signed and a deposit paid, the Land Registry in Cyprus provides a simple and effective legal instruction. This protects the purchaser's ownership until the title deeds are issued and transferred to their name. Your Cyprus property is now prevented from being leased, sold, transferred or mortgaged. Only you can alter this status.

Stamp Duty

A one off stamp duty is levied on the purchase of your Cyprus property.. The rates are dependent on the contractual purchase and payment is due within 30 days of signing the sale agreement.

Transfer Fees

The following fees will be payable when your Cyprus property is registered at the Land Registry office.

If a Cyprus property is bought in joint names, the calculation for transfer fee is halved.

Worked Example 1

Transfer fees on property bought for £60,000 is calculated as follows:

3% is charged on the first £50,000 i.e. £1,500
5% is charged on the next £50,000 i.e. 5% is charged on the remainder which is £10,000 = £500

Therefore for property bought for £60,000, the transfer fees, should the property be on one name only, will be £2,000.

Worked Example 2

If property purchased is £120,000 transfer fees will be calculated as follows:

3% on the first 50,000 = £1,500 (3%)
5% on the next £50,000 = £2,500 (5%)
8% on the remainder = £1,600 (8% of the remaining £20,000)

Total transfer fees on £120,000 are = £5,600

VAT

Since 01/05/04 a statute in respect of VAT on properties was introduced. In addition to other amendments, this statute introduced VAT on the rate of 15%.