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.
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.
| €2,000 (Non-refundable) |
| 30% of purchase price |
| Balance of purchase price outstanding 70% (including taxes) |
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.
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.
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.
The freehold owner is liable for an annual tax based on the value of the property.
Dependant on size of property, and covers refuse collection, street lighting etc.
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).
There is no inheritance tax payable in Cyprus.
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