Venus Home Developers

Legal System - Property

The legal system is based upon the same principles as those applicable in the UK, and all the statutes regulating business matters and procedures are based essentially on English Law, which makes property purchase and other legal transactions understandable to all.

Expert advice should be sought before entering into any transaction for acquiring property in Cyprus. Your lawyer must check the following:

1. A search with the Land Registry Office must be made to ensure that the seller has a valid        title to the property, and that there are no mortgages over the property, which would present problems with the transfer of ownership.

2. In the cases of property under construction, it must be check that the planning and building permits can be obtained and separate title deeds issued.

3. It must be ensured that the land is suitable for building purposes ie. Zoning restrictions, building regulations, access to an official road, availability of water, electricity and telephone lines.

1. Real Estate Transfer Tax – Fees

Real Estate Transfer Tax – fees are necessary in order to transfer “Freehold” ownership to the name of the purchaser. This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been completed. The transferee is responsible for the tax payment.

The rates are on a graduated scale as follows:

Value of Property Cyp£                           Transfer Fee Rate (%)

Up to 50,000                                          3%

From 50,001 – 100,000                           5%

Over 100,000                                         8%

For example, if the purchase price is Cyp£90,000

Cyp£50,000                   @         3%       =          Cyp£1,500

Next Cyp£40,000           @         5%       =          Cyp£2,000

                                                                        Cyp£3,500

Should the purchase be made in joint names (provided the price is more than Cyp£50,000), the effective value for calculation is halved.

1^st Buyer on Contract of Sale       Cyp£45,000       @         3%       =          Cyp£1,350

2^nd Buyer on Contract of Sale      Cyp£45,000       @         3%       =          Cyp£1,350

                                                                                                            Cyp£2,700

Transfer of ownership takes place by a simple process of registration at the Land Registry Office, and the issuing of the Title Deed after completion and delivery.

2. Stamp Duty

The purchaser is liable for the payment of Stamp Duty at the rate of Cyp£1.50 (1.5%) per Cyp£1,000 up to the value of Cyp£100,000, thereafter the rate is Cyp£2.00 (2%) per Cyp£1,000. This must be paid by the purchaser within 30days of signing the contract.

For example, if the purchase price is Cyp£140,000

Cyp£100,000                 @         1.5%     =          Cyp£150.00

Cyp£  40,000                 @         2%       =          Cyp£  80.00

                                                                        Cyp£230.00

3. Immovable Property Tax

The annual Immovable Property Tax is based upon the value of the property, with properties valued under Cyp£100,000 exempt. As this tax is still based on the value of property in 1980, which is much lower than current market value, the majority of properties in Cyprus have no immovable property tax.