Property Taxes/Fees
Stamp duties payable on contracts are £0.15 per £100CYP of a purchase price up to £100,000 and £0.20 per £100 above £100,000.

Property Transfer Fees: these are necessary in order to transfer FREEHOLD ownership to your name. This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been settled. The Property Transfer Fees are payable once only to the Land Registry Office according to the following scale:

Local Authority Taxes (Rates)
These are between 30-100 CY£ per annum depending on the size of the property and are for refuge collection, street lighting, etc.

Immovable Property Tax
The registered owner of the property is liable for this annual tax which is based on the value of the property.

Capital Gain Tax
If the property is sold has been the first residence of the person for at least 5 Years, tax releif can be claimed.As an exemption of C£10,000

applies to the gain from the sale of the property owned for a period of less than 5 Years.Capital gains tax is then charged on the balance at the rate of 20%.If an individual is entittled of more than one exemption the total amount is limited to C£50,000.These are exemptions from capital gains tax,at certain circumstances.

Value Added Tax (VAT):

As from 1st of May 2004, VAT is applied on the acquisition of new property (previously zero rated) at 5% if it will be used as first residence or 15%on the acquisition of additional properties. However, exemption is given for licensec houses before 30/04/2004.

Estate Duty/Inheritance Tax
Estate Duty, which is paid on assets based in Cyprus, provides very generous allowances, which on effect, means that in most cases nothing or only a small amount is paid. You may also make out your will as a Cypriot resident, which will exclude you from country of current residence inheritance tax.

Taxation Benefits

Cyprus has tax treaties with 34 countries for the avoidance of double taxation of income earned.This means that those who are residence in Cyprus and not in the country of origin, where tax rates are normally lower.

Pensioners:

That receive pensions in CY are liable to tax only if it exceeds C£2000 a year and the exceeded amount is charged separately from any other income

at the flat rate of 5%.

Residence Individuals:

Are liable to tax on worldwide income (earned within and outside Cyprus) and non-residents individuals are liable to tax only on income earned within Cyprus.From 2005 the income tax rates are:

For up to c£10,000 at 0% rate

£10,000-£15,000  at 20%rate

£15,001-£20,000 at 25% rate

£20,001-and over at 30%rate

Business Investors:

Foreign individuals and companies that acquire property in Cyprus take advantage of the taxation benefits( corporate tax of 10%) and the other

advantages Cyprus offers.

Non- Cypriots residents:

Employed in Cyprus are granted a special exemption of 20% of their emoluments with C£5,000 the highest exemption amount for a period of 3 years commencing form 1st January following the year of commencement of employment.Cyprus residents employed outside Cyprus in a non-Cyprus resident employer or in a foreign permanent establishment of a Cyprus resident employer are exempt from taxation on any incime derived

outside Cyprus, if the period of empoyment exceeds 90 days in a tax year.

Banking and Financing:

The banking system and regulations are of European standards.There are international and local banks operating in the inland with many branches offering wide and high quality services.Non- Cypriot citizens may open accounts in local and foreign currencies and recieve bank facilities like mortgages for buying property inlocal or foreign currency.Major credit cards are wodely used.

Duty free Privileges:

Non- Cypriots who settle permanently in Cyprus without exercising any kind of employment or be engaged in any kind of business or work such as pensioners or persons earning their income from sources outside Cyprus are eligible to import their personal property duty free including a vehicle,

which can even be acquired locally or imported or brought by them.

Vat Subsidy On Property:

An amount of VAT is subsidized to those who are purchasing or constructing their first residence post VAT. Residences entitled to VAT refund are those who have received permit after 1 May 2004 (E.U accession).

All Cypriot citizens are entitled to these refunds as long as the property is a permanent residence and does not exceed 250m2.

Applications can be found at the Ministry of Finance and the following documents should be included in your claim:

1.Copy of Identity Card

2. Marriage certificate (where applicable)

3.Copy or Town Planning permit or Building permit

4.Copy of application for Town Planning permit (where applicable)

5.Proof of purchase such a contract of sale, receipts, bank mortgage etc

6.Any other documents proving that the property is a permanent residence such as electricity bill, water bill, phone bill etc.

7. Confirmation document signed by the Architect stating the exact square metre of the property.

The application from and the document s must be returned to the Ministry of Finance (Grants Department).