Bank of Cyprus: www.bankofcyprus.com
Hellenic Bank: www.hellenicbank.com
Alpha Bank: www.alphabank.com
USB Bank: www.usbbank.com
Societe Generale Bank: www.sgcyprus.com
Eurobank Cyprus: www.eurobank.com
Ancoria Bank: www.ancoriabank.com
Cdb Bank: www.cdb.com
National Bank Of Greece (Cyprus): www.nbg.com
VAT payable on property in Cyprus
Since Cyprus’ accession to the EU in 2004, VAT must be paid when buying a new build property.
VAT is charged on the sales price at a rate of 19%.
No VAT is charged on the purchase of land.
Important Note For The Reduction Of Vat To 5%
A reduced rate of VAT to (5%) has been introduced for properties purchased by Cypriots, EU and non EU citizens who are permanent residents of Cyprus under certain regulations.
Annual Property Taxes and fees in Cyprus
A. Immovable Property Ownership Tax Rates are as follows:
|Value of Property||Rate|
|0 € - 12 500 €||0%|
|12 501 € - 40 000 €||0.6%|
|40 001 € - 120 000 €||0.8%|
|120 001 € - 170.000 €||0.9%|
|170 001 € - 300 000 €||0.11%|
|300 001 € - 500 000 €||0.13%|
|500 001 € - 800 000 €||0.15%|
|800 001 € - 3 000 000 €||0.17%|
|Over 3 000 000 €||0.19%|
B. Municipality TAX
As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1‰ – 2‰. Municipality tax is payable to your local municipal authority.
C. Sewerage TAX
As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3% – 5%. Sewerage taxes are payable annually to your local sewerage board.
Title deeds in Cyprus
Transfer of ownership from Vendor to Purchaser is a simple procedure undertaken through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with a power of attorney.
When the Title Deeds are issued, (a few years after the completion of the project / property) they are always in the name of the Developer and then Developer transfers the Title Deed of each unit in the name of the purchaser. From the minute your Contract of Sale is deposited at the Land Registry Department, you the purchaser can prevent the owner/developer from transferring the property elsewhere or changing it. Furthermore no burdens, charges or encumbrances can affect your right to seek specific performance after the contract has been deposited with the Land Registry, since you are the beneficial owner.
Upon transfer of the property and registration in the purchaser’s name, the District Land Registry Office will charge transfer fees. These are based on the market value of the property at the time of purchase and are calculated as follows:
|Value of Property||Rate|
|Up to €85.430.07||3%|
|€120.001 - €170.860.14||5% For properties owned by a couple or by two individuals, each buyer pays transfer fees on 50% of the property value for each, bringing financial benefit on any property with a value exceeding €85.430,07|
|€170.001 - €170.860.15||8% Transfer fees – payable only once - are payable at the transfer and registration in the purchaser’s name of the title deed of the property (usually 3 – 5 years after final delivery).|
Acquiring Title Deeds
A Title Deed of the property is a document in which specifies the name of the owner. The purchaser can transfer the property to their or a company’s name at any time they wish. Such a transfer can be carried out after receiving the permission from the Council of Ministry. According to Cyprus Law, the contract exists in written form. With the signing of the contract of sale and payment of the deposit, the contract is registered at the Land Registry Office to guarantee the protection of legal rights for the purchaser in the event of non-observance of the contract. This procedure protects the purchaser’s ownership rights until the title deeds are issued as the contract cannot be withdrawn by anyone, therefore the property cannot be leased, sold or mortgaged.
Providing the purchaser has the following documents: certificate of Central Bank, sanction of Ministerial Council, registration at the Land Registry office and fulfillment of all contractual obligation, the property will be transferred to the purchaser. The process of Registration of the appropriate documents takes approximately up to 6 months.
From the moment you purchase your property from “YIATROS GROUP OF COMPANIES” , the company offers a complete list of services, such as assist with the purchase of household engineering and assistance in interior design.