Costas Indianos & Co law firm provides assistance and legal advice to clients for the following:
- Agreement for Sale & Purchase of Immovable Property
- Resale of Immovable Property
- Lease Agreements
- Tax advice of real estate
- Tax-Planning by disposing shares of a Cyprus Company owing Immovable Property
The firm also provides legal advice and services to resident, non-resident, individual or corporate clients who are seeking for advice or wishing to purchase immovable property in Cyprus. Real Estate has seen a value appreciation of 20% to 30% in the last 5 years
- Immovable property may be acquired by foreign individuals or companies in Cyprus for residential or business purposes. Estate Agent: Mrs Helene Indianos email email@example.com
- Alien acquisition of immovable property requires the approval of the District Officer which is usually given within 2 months. Such permission may cover the acquisition of freeholds, leaseholds, acquisition of property through a trust or a combination of any of the above.
- Under legal terms, an alien is a non-Cyprus citizen whether resident or not, a company with half or more alien directors, a company incorporated abroad whether management and control is in Cyprus or not, or a trust in which an alien has an interest. Furthermore, an acquisition refers to an outright purchase of property, a lease of immovable property extending for a thirty year and more term, an acquisition of shares in a Cyprus company owning immovable property in Cyprus, or the creation of a trust for an alien which relates to immovable property.
- Applications for a permit to acquire immovable property are submitted by local lawyers who will draft the relevant contracts of sale / purchase. Our Law Firm will assist the client for the draft of the immovable property sales contract as well as for the legal procedure which must be undertaken with the Cyprus Land Registry for the acquisition of the immovable property.
- Foreigners can acquire the following: an apartment, a house, a building plot of land up to approximately three donums (2675 square metres), an office space, a commercial space.
- The profit from the sale of immovable property in Cyprus is taxed 20% with a tax exemption on the first € 17.100 out of the profit made.
- Transfer fees are paid by the acquirer to the Department of Land and Surveys on transfers of immovable property and registration of any lease/sublease. The transfer fees are calculated on the market value of the property or lease/sublease as estimated by the Department of Land and Surveys at the following rates:
Market Value Rate Fees Fees
€ % € €
0 – 85.000 3 2.550 2.550
85.000 – 170.000 5 4.250 6.800
170.000 and over 8
The above rates are reduced by 50% except in the case of transfers under Part VI and Part VIA of the Transfers and Mortgages of Immovable Property Law.
In the case of free transfers of property between the following parties, the transfer fees are calculated on the value of the property as at 1 January 2013 at the following rates:
- from parents to children 0%
- between spouses 0,1%
- between third degree relatives 0,1%
Exemptions from transfer fees:
The following transfers are exempt from transfer fees:
- under a qualifying reorganization
- under a qualifying loan restructuring
- in the context of bankruptcy, liquidation, disposal of mortgaged immovable property by the lender
The annual immovable property tax on the market value of the property in Cyprus is as follows:
Immovable Property value based
on 1.1.1980 prices Tax Rate Tax Cum. Tax
*There is a minimum IPT charge of €75.
A person who owns immovable property worth €170.000 (based on the 1 January 1980 prices) as at 1 January 2013 will have to pay a total IPT of €1.330 for 2013.
- Transfer fees for the immovable property:
Up to € 85.430,07 – 3% = € 2.562,90
From € 85.430,07 to €170.860, 14 – 5% = € 6.834,40
From €170.860, 14 – 8%, etc.
(Exceptions = family issues)
- Payment for such property must be made by foreign funds imported into Cypruswhich can be repatriated at the rate of € 17.100 per annum, excepting, of course, the original purchase price which can be repatriated immediately.
Non-residents selling to non-residents on the strength of a contract concluded abroad may have the entire proceeds paid to them abroad.