The amount of the fee is roughly:
If the appraised value of the property is up to 85,000 euros – the rate is 3%
From 85 000 euro to 170 000 euro – rate 5%
Above 170 000 euros – the rate is 8%.
This is collected by the Land Registry from the purchaser on the transfer of title of the property.
*If the property is subject to VAT, the Buyer is exempt from the above fees.
*If the property is not subject to VAT, the Buyer is entitled to a 50% exemption from the aforementioned tax on the transfer of ownership.
20% of the profit tax paid by the seller on the sale of the property,the difference between the purchase price and the sale price.
It is also possible to reduce the amount of tax – if the Seller incurred expenses during the ownership of the property, such as bank loan , repair work and other.
VAT is paid at a rate of 19% when purchasing property in the primary market from the Developer. The same rate applies to the purchase of land for development.
In transactions involving the purchase of primary properties, buyers have the option to apply for a reduced VAT rate of 5%, instead of 19%. The reduced VAT rate applies to the first 200 sq. m. of the property, while the remaining area is subject to VAT at the rate of 19%. The property must be used as a permanent residence in Cyprus .
The approximate amount of tax is:
If the assessed value of the property up to 5 000 euros – the rate of 0%
From 5 001 euro to 170 000 euro – the rate of 0.15%
More than 170 000 euros – the rate of 0.2%
*Also, once a year, property owners must pay a so-called municipal fee (for garbage collection, street repairs and maintenance, etc.)
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