A Cypriot national and resident holding an E.U. member state passport has the right to buy any immovable property freely. Currently, non-residents of Cyprus require permission from the council of ministers to purchase residential property.
Once permission is obtained you may purchase one apartment, house or villa on a building site that does not exceed 4014 meters square or a piece of land up to a maximum of 4014 meters square for the purpose of building a property within a reasonable time frame.
Property acquisition laws are in the process of being revised since Cyprus joined the European Union at the beginning of May 2004. In accordance with the E.U. directives, all restrictions of real estate purchases will be lifted and E.U. citizens will be able to freely purchase property just as they would in their home country.
CPV can introduce you to affiliate lawyers and assist you through all the legalities involved when deciding to purchase a property in Cyprus. Your solicitor will perform all necessary searches on the property and make sure that the necessary planning and building permissions are in place. Your appointed lawyer will also secure a permit for the council of ministers allowing the registration of the property in your name and also secure the central bank certificate.
Property legal fees are approximately 1-2% of the property purchase price, depending also on the amount of work carried out. Sometimes buying property as a company makes more financial sense and also for legal, tax, and inheritance law reasons.
The majority of properties in Cyprus are freehold, which means that ownership is for perpetuity. The Land Registry office transfers and issues title deeds following completion of the property.
Taxation and Benefits
Cyprus enjoys unique favorable tax laws for foreign investors and also if you are residing permanently.
Income tax rates (for individuals)
Up to €19,500 Nil
€19,501 – €28,000 20%
€28,001 – €36,300 25%
€36,301 and over 30%
Income tax rates (for Corporations)
Capital Gains Tax
Capital gains tax is payable at 20% on the profit of the disposal of your immovable property. The first €17,100 is tax exempt or the first €34,200 if property is jointly owned by a couple. If the owner can prove that he/she has resided in the property for over 5 years then the amount of €42,750 is exempt or €85,500 if the property is jointly owned.
Double Taxation Treaties
Cyprus has signed double taxation treaties with a large number of countries and more are under negotiation. These treaties may affect favourably the ownership of immovable property in Cyprus and also people who decide to relocate to Cyprus such as retired citizens, employees and business investors.
Some of the countries with which Cyprus has entered into double taxation treaties are: U.K., Ireland, Greece, U.S.A., Canada, France, Germany, Italy, Russia, Belarus, Romania, China, Austria, Belgium, South Africa and others.