Payments for the purchase of property by non-Cypriots have to be in the local currency (Euros).
You must always keep documentary evidence of all money transfers and payments.
According to Cyprus Law the contract exist in written form and it should be registered at the Regional Land Registry Office within two month from the date of signature to guarantee the protection of the legal rights of the purchaser in the event of non-observance of the contract. Once the contract of sale is signed and registered at the Land Registry the ownership rights of the purchaser are protected until the title deeds are issued and transferred to his name. Once registered at the Land Registry, the contract cannot be withdrawn or cancelled.
According to the law relating to the purchase of property, non-European citizens are entitled to acquire an apartment, house or plot of land for the purpose of building of an area of no more than 4.012 m2, but in certain circumstances, a non-European may be given permission to own property that exceeds these limitations. Non-Europeans require the authorisation of the Council of Ministers for the purchase of property, but this is actually just a formality. The letter of approval may take 6-12 months, but in the meantime there is no restriction in signing a contract and taking possession of the property. But even in the highly unlike situation that the Council of Ministers does not approve the purchaser’s application, the sales contract obliges us to sign a new contract and transfer the Property to any other person or company the purchaser may nominate.
The property cannot be leased, sold, transferred or mortgaged by anyone but the purchaser.
The purchaser has to have the following documents of the property to pass it to his name:
- Certificate of Central Bank (Non-Europeans)
- Sanction of Ministerial Council (Non-Europeans)
- Contract Registration at the Land Registry office
- Fulfilment of all contractual obligation
Usually the process of registration is quite fast, from 1 day to 3 month.
All Taxes calculated are valid for the year 2012.
A stamp duty of 0.15% is levied on purchase contacts with a value of up to € 178.060. For any amounts more than this, the rate is 0.2%. This duty is due within 30 days of signing the contract. The payment is payable by the purchaser when presenting the contract to the authorities for authentication and validation as an official document acknowledge by the government.
Property transfer fees are payable only once by the purchaser and are due when the title deeds are transferred to his name.
IMMOVABLE PROPERTY TAXES
The registered owner is liable for this annual tax, which is based on the value of his property.
The gain arising after the deduction from sale proceeds, the value of the property at 1.1.1980 or the cost of acquisition after 1.1.1980 adjusted to account for inflation is taxed at the rate of 20%.
Lifetime exemptions applicable to individuals for gains from the sale of immovable property are as follows:
Note: Gains accruing from disposal of property held outside Cyprus are exempted from capital gains tax.