Transfer Tax

Transfer Tax is paid on all properties to receive your Title Deed

Real Estate Transfer Tax is calculated according to the following rates:

Property Value Tax Rate
Up to €85,430 @ 3%
From €85,431 to €170,860 @ 5%
€170,861 and over @ 8%

In Cyprus, transfer tax is levied upon the transfer and registration of the property into the name of the purchaser. The transfer tax is based on the market value of the property at the time of purchase, which is determined by the Cypriot Land Registry Office.

Property transfer fees halved

 

Following a unanimous vote by MPs at the House plenary earlier today, Property Transfer Fees are to be cut by 50 per cent on all property sales that take place before 31 December 2017.

 

Filed Under Property transfer fees halved CYPRIOT MPs voted unanimously to cut Property Transfer Fees by 50 percent as part of a wider tax reform package designed to modernise the island’s property tax system and encourage economic activity in the real estate sector.

 

The reduced transfer fees will apply to all property sales and registrations of leases or subleases that take place until 31 December 2017.

 

We give you an example in order to understand how the transfer tax system works:

Let's assume a house is purchased by you for €300,000, and this amount is accepted by the Land Registry Office as the market value as well.

The calculation of transfer taxes is as follows:

           85,430 @ 3% =      €2,562.90
           85,430 @ 5% =      €4,271.50
          129,140@ 8% =     €10,331.60
     ---------------------------------------
     Total Transfer Tax payable €17,165.80
     =========================

There is a 50% discount on the about figure up to 31st December 2017

If there is NO VAT payable then transfer fees, currently has a  50% discount.

If the property is liable for VAT and is under 250m2 in size then there is no Transfer Fees

The same computation also applies if the purchaser is a limited liability company.

The transfer fees can be reduced if you purchase the house jointly with your wife or husband.

 Note:  A discount of 50% on transfer fees on Property bought after 1/12/2011

THE INFORMATION ABOVE IS SUBJECT TO CHANGE AT ANY GIVEN TIME AND IS NOT LEGAL BINDING. ALWAYS CHECK WITH THE RELEVANT GOVERMENT DEPARTMENT

 

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