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Real Estate

The 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
  • Conveyancing
  • 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: Indianos, Kyriacou & Associates : Tel. : +357 22 878387, fax +357 22 878408, email : ikaestates@cytanet.com.cy

  • 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.

  • 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

      

€1-

€40.000

0.6%

€240*

€240

€40.001-

€120.000

0.8%

€640

€880

€120.001-

€170.000

0.9%

€450

€1.330

€170.001-

€300.000

1.1%

€1.430

€2.760

€300.001-

€500.000

1.3%

€2.600

€5.360

500.001-

€800.000

1.5%

€4.500

€9.860

€800.001-

€3.000.000

1.7%

€37.400

€47.260

€3.000.001-

 

1.9%

 

 


 











*There is a minimum IPT charge of €75.

 

Example

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 Cyprus which 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.

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