Buying Property

Contract of Sale

The contract of sale signed between the Seller (property owner) and Purchaser binds both parties to perform according to their respective obligations. Upon the signing the contract, the purchaser is liable to pay stamp duty, it is advisable for the contract of sale to be registered within 2 months of the contract date at the District Land and Surveys Department in the region where the property is situated. The deposit fees are payable by the Purchaser, the amount is €50.00. The purpose is to provide safeguards for the purchaser and creates the so called “right to specific performance” in favour of the purchasers. By registering the contract of sale with the District Land and Surveys Department, the purchaser is considered as the beneficial owner of the property until the title deed is issued.

Title Deeds

When title deeds are issued, they are registered in the name of purchaser and filed in Registry archives, which are confidential and are not published or made public under any circumstances. The Sale of Land (Specific Performance Law) Law 81(I)/2011 provides safeguards for sellers and buyers of property – the law requires the sale and purchase agreement to be submitted to the Cyprus Land Registry.


Stamp Duty on Contracts

The Purchaser is liable for the payment of Stamp Duty on the purchase price of the property at the following rates:

First €5,000 – 0.00%

€5,001 to €170,000 – 0.15%

over €170,001 – 0.20%

This should be paid within 30 days from the signing of the Contract of Sale.


Local Authority Fees

Depending on the size of your property, local authorities charge between €85 – €500 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local municipal authority.


Property Tax


Immovable Property Tax

Market Value of Property (01.01.1980) (€)

Annual Property Tax (%)

up to 40,000

 0.6

40,001 to 120,000

 0.8

120,001 to 170,000

 0.9

170,001 to 300,000

 1.1

300,001 to 500,000

 1.3

500,001 to 800,000

 1.5

800,001 to 3,000,000

 1.7

Over 3,000,000

 1.9


Capital Gains Tax

On any financial gains from disposal/sale of Immovable Property situated in Cyprus, Capital Gains Tax will be imposed at the rate of 20% with the first €17,086 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1st January 1980, the gains are the difference between the sales proceeds and the market value of the property as of 1st January 1980.

The Seller is entitled to a further allowance regarding the Transfer Fees paid, Inflation Rate per year and the cost of any additions made to the house.

Gains from the disposal/sale of a private residence/dwelling house are exempt up to €85,430 in total if the owner resides in it continuously for at least five years prior to disposal/sale.


Municipal 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.


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% – 7%.

Sewerage taxes are payable annually to your local sewerage board.

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