Royal Bay Oroklini - Luxury Cyprus Villas
Home > Purchasing Procedure
Purchasing Procedure

Legal Safeguards

The Cyprus legal system is similar to the UK’s. There is also an instrument within the land law, ‘Specific Performance’, which recognises a purchaser who has lodged their purchase agreement with the Land Registry within 60 days of signing the Agreement. As the legal purchaser one is entitled to register the property in their name once the Permission To Purchase (PTP) is secured, and payment of the purchase price is completed.

Signing Contracts

One enters into a legally binding agreement with the vendor, developer or builder, once you have chosen the type of property. Title Deeds are transferred as soon as they are issued by the Land Registry, and following the payment of the purchase price.

Payment for Royal Bay Oroklini Villas

Payment Stage Amount (€)
Deposit to secure plot €2,000 (Non-refundable)
Payment on Exchange 30% of purchase price
Upon legal completion Balance of purchase price outstanding 70% (including taxes)

Permission To Purchase (PTP)

After signing contracts, non-Cypriots must apply to the Council of Ministers for permission to acquire the property. This formality can be undertaken by a lawyer.

Taxes Relating to Property

Real Estate Transfer Tax (RETT), RETT fees are paid to the Land Registry, and are necessary in order to transfer the freehold to new ownership.

Property Value in CY£ Fee Percentage
The first 50,000 3
Then 50,001 – 100,000 5
100,001+ 8

Stamp Duty

Stamp duty is determined by the value of the property, and is paid to the tax authorities within 30 days of signing the sale agreement.

Property Value in CY£ Duty Payable
Up to 100,000 0.15%
100,000 + 0.20%

Immovable Property Tax

The freehold owner is liable for an annual tax based on the value of the property.

Market Value as at 01/01/80
CY£ per 1000
Up to 100,000 Zero
100,001– 250,000 2.0
250,001 – 500,000 3.0
Over 500,000 3.5

Local Authority Taxes (Rates)

Dependant on size of property, and covers refuse collection, street lighting etc.

Capitals Gains Tax

This is 20% on gains arising from the sale of the property. The gain is the difference between the sale price, adjusted by an indexation allowance, less its original cost. The cost of any improvements and sales costs can be offset against the tax, and one can also take advantage of substantial exemption allowances (CY£50,000 at September 2003).

Inheritance Tax

There is no inheritance tax payable in Cyprus.

Winner of the Bentley International Property Award 2005