Taxes & Protection for Buyers
Taxes
Home property ownership in Cyprus comes with a capital gains tax advantage. Under this advantage, the full purchase price of the home to be transferred to any international financial institution at the point where the owner re-sells said property to a new buyer. The entire purchase price plus any equity earned during ownership is able to be transferred once the sales process is complete. Cyprus property sales are subject to a 20% gain with the first cy £10000 being tax exempt. In the case of a joint couple selling the home, the exemption is increased to the first cy £20000. First time private home owners who maintained possession of the home for at least 5 years are granted a tax exemption of up to cy £50000.
The person assuming ownership of a property will be assessed an immovable property tax. This tax is figured according to the current market value price of the home. This amount will fluctuate between cy £0 - 4 per thousand. Average charges have come in around cy £50 to cy £100 per annum for each unit up for sale.
Next comes the taxes owed to the Municipality where the home is located. This tax greatly depends on the size and current value of the property in the transaction. Fees range from cy £50 to cy £150 per housing unit being purchased. These fees are not paid in vain. The funds generated are used to pay for refuse collection service, sewer usage, street lighting efforts and other community developmental aspects as deemed of importance by the Municipality.
Protection for Buyers
All housing purchases must include a contract of sale, regardless of whether the buyer is a Cyprus resident or an international buyer. This contract must be submitted in writing to the District Land Registry office within 60 days of the initial contract date. By doing so, a buyer ensures that all rights on that end are being protected. Upon receipt of the house title documentation, the initial registration will be held in the name of Cybarco Ltd. This documentation comes within 2 to 5 years following completion of the home sale. After receipt of the documentation, it is transferred into the buyers name and submitted to the appropriate government agencies. These agencies safeguard all documentation and nothing is made available to the public for any reason.
All property transactions conducted within Cyprus receive this treatment. Cyprus has never taken part in a nationalization process for government sectors. By doing so, the island has been able to establish a favourable, level home buying playing field for all buyers both residential and international.