Property Investment Information and Advises

Investing in the Property Sector in Cyprus requires extensive knowledge of the local market, the factors that affect the market/ rental value of the property and the taxation system.

The Open Market Value of any property in Cyprus depends on its physical and legal characteristics such as Planning Zones, Planning Restrictions, Quality of Construction (for buildings), Location, Services/ Utilities, Supply and Demand, e.t.c.

The Property Taxation System in Cyprus involves the following
Transfer Fees paid by the buyer for the property acquired
Immovable Property Tax paid annually by the registered owner of the property
Fees for the deposit of a sales contract in the Land Registry paid by the buyer (paid only if the buyer wish to deposit the sale contract for security purposes in the Land Registry)
V.A.T paid by the buyer of a building. For those buildings for which an application for a town planning permit was submitted prior to the 1.5.2004, no V.A.T. is charged in the event of a sale. For those after the above date, a V.A.T. of 15% is charged, but there is a refund.
Local Council Tax paid annually by the registered owner of the property
Capital Gains Tax/ Income Tax paid by the seller of the property

For any advice regarding the above matters you should take the opinion of Property Valuers, Accountants, Architects/ Civil Engineers and Solicitors.

Be aware

  • Restrictions and allowances implied to foreign property buyers

  • Double Taxation Agreements

  • Preparation of any sales contract and lease agreement also requires specialized knowledge