Compared to many countries Cyprus has flexible property buying procedures. People of Cypriot origin and EU citizens are allowed to purchase however much property they choose. A non-EU citizen is entitled to FREEHOLD ownership of a villa, apartment, or a piece of land of up to 4,014 m2.

International business units may also acquire premises for their activities or for residence of their foreign employees.

Completion of Form N.270 (Declaration of Transfer of Immovable Property). The certificate of registration (title) of the immovable property, which is to be transferred, must be attached thereto. Where the transfer of the property takes place at a Lands Office other than the Lands Office of the District where the property is situated Form N.270 must be completed in duplicate.

Production of the receipts of payment of all fees, charges and taxes payable for the property under transfer. Such fees, charges and taxes may be one or more than the following:

All documents mentioned above must be completed and signed by the interested persons and deposited with the Lands Office accepting the transfer.

The acceptance of the transfer is effected by order of priority. Both parties must appear either in person or by agent and produce their identity card or other documents proving the same before the Lands Officer accepting the transfer.

The procedure for acceptance is completed upon the calculation and the payment of the fees by the transferor to the Lands and Surveys Department.

The fees payable vary depending on the kind of transfer and are determined based on the assessed value, or on the market value of the property under transfer.

Assessed value means the value of the property recorded in the Land Register.

Transfers without particular problems may be completed within one hour. In this case, the registration of the immovable property and the delivery of the titles to the parties may be made on the same day, provided all interested parties appear at the Office on time. If not, the title is issued on the next following days depending on the accumulated work volume and the available personnel.

For complex cases the public is advised to apply to the Competent Land Officer in charge of the Declarations Branch of the appropriate District Lands Office.

GOOD NEWS FOR PROPERTY BUYERS Property Transfer Fees reduction of 50% is now permanent.

The Cyprus Finance Ministry announced that the temporary arrangement to reduce Property Transfer Fees by 50 per cent, is now PERMANENT; the law implementing the change, ‘Land and Surveys Department (Fees and Rights) (Amendment) (No. 2) Law’, was passed on 14th JULY 2016 at a plenary session of the Cyprus parliament.

In its announcement the Finance Ministry stated “The above arrangement aims to boost additional growth in the construction industry and attract new investments from both the domestic, and the foreign markets.”

Capital Gains Tax is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property situated in Cyprus including gains from the disposal of shares in companies which own such immovable property, excluding shares listed on any recognized stock exchange.

The following disposals of immovable property are not subject to Capital Gains Tax:

– Transfers arising on death

– Gifts made from parent to child or between husband and wife or between up to third degree relatives

– Gifts to a company where the company’s shareholders are members of the donor’s family

– Gifts by a family company to its shareholders

– Gifts to charities and the Government

– Exchange of properties

Liability is confined to gains accruing since 1 January 1980. The costs that are deducted from gross proceeds on the disposal of immovable property are its market value at 1 January 1980, or the costs of acquisition and improvements of the property, if made after 1 January 1980, as adjusted for inflation up to the date of disposal on the basis of the consumer price index in Cyprus. Expenses that are related to the acquisition and disposal of immovable property are also deducted, subject to certain conditions e.g. transfer fees, legal expenses etc.

Individuals can deduct from the capital gain the following:

– Disposal of private residence (subject to certain conditions) 85.430

– Disposal of agricultural land by a farmer 25.629

– Any other disposal 17.086

The above exemptions are lifetime exemptions subject to an overall lifetime maximum of €85.430

Based on the new modified law for stamp duties 173 (1) 2013 which is in force as from 1st March 2013, stamp duty payable on the Contracts of Sale will be as follows:

The first 5,000 NIL

5,001-170,000 1,50 ‰ on the value or part thereof

Over 170,001 2,00 ‰ on the value or part thereof with a MAXIMUM LIMIT of €20,000

First €5.000 - NIL

For next €165.000 will be paid €1.50 % i.e - €247,50

For remaining €80.000 will be paid €2.00 % i.e - €407,50

Estate Duty has been abolished since 1 January 2000. The executor/ administrator of the estate of the deceased, is required by the Deceased Persons Estate Law, to submit to the tax authorities a statement of assets and liabilities of the deceased within six months from the date of death.