Cyprus Property Tax

Cyprus Captial Gains Tax: Capital gain is revenue attained from the sale of an asset that was previously purchased at a lower price. Generally, capital gains are attained from the sale of stocks, bonds, and property. When the sale of one of these assets suffers a loss instead of making revenue, this drop in profit exemplifies capital loss.

Upon the reselling of your property, capital gains tax will be payable at the rate of 20% on the profit revenue, with the first 10.000 CYP being waived for each person. The profits are the variations between the sales proceeds and the original cost of the property. With reference to property purchased before January 1st, 1980, the profits are the difference between the sales income and the market value of the property as of January 1st, 1980. In addition to this payment, the seller is permitted to an additional allowance concerning the transfer fees paid, annual inflation rates and the cost of any renovations made to the property. Profit from the reselling of your property is not liable in total, up to 50.000 CYP if you reside on the property for at least five years prior to reselling it.

Cyprus Stamp Tax: Once you have purchased your property, you are responsible for the payment of stamp tax. Stamp tax stands at the rate of 1.50 CYP per thousand of the property value up to 100.000 CYP. The amount exceeding 100.000 CYP is then charged at the rate of 2.00 CYP per thousand. While non-affixed stamps do not invalidate a contract, the stamp tax plus a fine will be payable when the document is produced to the Court or any other Government departments. Official documents should always be stamped within 30 days of their signing in order to avoid facing any legal repercussions.

For example, if the purchase price is 150.000 CYP:

First 100.000 CYP 1.5% 150 CYP
Next 50.000 2% 100 CYP
Total: 250 CYP

Cyprus Local Tax Rates: Local tax rates range between 50 - 150 CYP annually depending on the amount of your property. These taxes cover waste collection, street lighting, sewerage, etc. Basic utilities, such as electricity, water supply and telephone are to be paid separately in compliance with their utilization and based on meter readings.

Cyprus VAT: As of May 1st, 2004, a statue regarding VAT was introduced at the rate of 15% concerning property purchasing and development. There is a reduced charge of VAT of 5% that applies primarily to food and agricultural products. VAT pertains to assets and services in Cyprus, in addition to imports entering Cypus.

Cyprus Double Taxation Policies: Cyprus has double-taxation agreements with the following countries: Austria, Bulgaria, Canada, the People's Republic of China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia (Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine), Slovakia, South Africa, Sweden, Syria, the United Kingdom, the United States, Yugoslavia (Serbia and Montenegro) and other countries. The prime objective of these agreements are the prevention of double taxation of income grossed in any of the avbove mentioned countries. A credit is typically permissible concerning taxes lived by the country of your residence for taxes collected in the other country.