Taxes and duties on Cyprus property
Stamp duty
A taxation which allows your contract to be stamped so that it can be deposited in the Cyprus Land Registration Office (Title Deeds Office). Once this occurs you will either receive a Specific Performance Number (if the property has no Title Deeds yet) or Title Deeds will be issued directly on your name if the property has Title Deeds. The rate is as follows:
2.5 euros for every 1000 euros if the value of the property does not exceed 170 860 euros , and
3.5 euros for every 1000 euros if the value of property is more than 170 860 euros .Transfer Tax
This tax must be paid to transfer ownership of the property from the seller to the buyer. It essentially pays for the Title Deeds and is only payable once Title Deeds are issued. This may take several years after purchase. This tax rate is as follows:
The cost of property (euro) Duty rate (%)
Up to 85 430 3
85 430 - 170 860 5
More than 170 860 8 VAT (Value Added Tax)
Since the entry of Cyprus into the European Union (2004) Value Added Tax (VAT) has been introduced to real estate purchases. This tax is only levied on new projects with plans which were approved by the Planning Office after May 1, 2004.The VAT rate is currently 15 % . Thus, when buying a house the total cost of legal registration would amount to 5-6% of the cost. Annual Property tax Property Tax is payable once a year by the person appearing on the Title deed of the property. The Rates are as follows:
Value of the property, the euro Annual Tax
Up to 170 860 0
170 860 - 427 150 0,25%
427 150 - 854 300 0,35%
More than 854 300 0,4% The tax on capital gains.
When deciding to sell your property in Cyprus Capital Gains Tax is to be paid. This is a tax on the difference between the selling and buying price of the property and is currently 20 %. Every private individual is entitled to a 17 000 euro allowance which is written off the total Capital Gains Tax payable.
Property maintenance costs
Maintenance costs of Cyprus property
1). Utilities:
Water and electricity cost depends on consumption. A guide is 700 euros per year.
2) . Taxes to local authorities.
Approximately 85 - 250 euros per year, depending on the size of your property and the location. Ths includes include a fee for street cleaning, garbage disposal, street lighting, etc. 3). Property Insurance
Approximately 2.55 euros for every 1700 euros of the property value. 4). Inheritance tax
In Cyprus there is currently no Inheritance Tax although it is advisable to create a will for the administration of the estate. | 
