Financial

As a non-Cypriot you are entitled to a Freehold ownership of a property or a piece of land up to 4,013sq/m (an equivalent of 43,195 square feet). Offshore entities may also acquire property in Cyprus, for their business purposes and/or for their employees' residential needs. Permission to transfer the property bought to the non-Cypriot's name must be sought from the Cyprus Council of Ministers. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable time after signing the contract of sale.

Property Registration/Transfer 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:

 

 

For Example, if the purchase price is EU€ 153,900:

 

 

IF the purchase be made in joint names(i.e. husband and wife, and provided that the total purchase price costs over 85,500 EURO) the calculation for the total transfer fee is as follows:

For Example, if the purchase price is EURO€ 153,900:

 

Stamp Duty 

After signing the contract, stamp duty has to be paid. Stamp duty is imposed at the rate of €2.56 EURO per € 1,710 EURO up to the value of € 171,000 EURO, and above that the rate is €3.42 EURO per €1,710 EURO. It should be paid within 30 days after signing the contract.

For Example, if the value is EURO€ 256,500:

 

 

The annual immovable property ownership tax is based upon the value of the property. Although, there is an exemption.

 

 

IMPORTANT:This tax is based upon the value of the property in 1980 which is much lower than the current market value. So there is no immovable property tax for the majority of properties in Cyprus.

Local Authority Taxes and rates

Depending on the size of your property, you have to pay an amount something between € 85-255 per year. This tax is for garbage collection, street lighting, sewerage, etc... 

 

Transfer of ownership from vendor to purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party (i.e. a Licensed Estate Agent ) with a Power of Attorney. Contracts of sale should be logged at the Land registry office within 60 days of the contract date to ensure the buyers rights to the property. When Title deeds are issued they are registered in the name of the buyer and filed in government archives. These are confidential archives and are not published or made public under any circumstances.

Residential Permit

Residential Permit is easily obtained for persons living in Cyprus, who have purchased property. 

Temporary Permit

 

It requires the existence of a bank account in Cyprus and a sales agreement of the property purchased. Temporary residence status can be from 1 – 4 years. 
Permanent Permit:In addition to the above requirements, the applicant must provide evidence of a secured annual income of not less than € 9.063 for a couple. Temporary residence is easy to obtain once the applicant fulfils certain requirements. To apply for temporary residence a visit to the local immigration office should be arranged and produce the following documents

You can sell the property at any time and with no restrictions. However there are two different cases:
 

a)If the property is sold to a non-Cypriot who is paying from external funds, then the whole amount can be repatriated without any requirements. 

b) If the property is sold to a Cypriot, who is paying in Euro then the seller is entitled to repatriate an amount equal to: a) what he paid to buy the property, b) plus any other (proved) costs involved with additions or extensions of the property, c) plus the transfer fees, d) plus the inflation, e) plus € 85,500 per person per year.

Taxation 

The U.K./Cyprus double taxation treaty, which is unique in this respect enables United Kingdom pensioners to remit both government as well as private sector occupational pensions to Cyprus free of withholding taxes in the United Kingdom. The relief offered to British government pensioners resident in Cyprus is unique, and generally not available elsewhere under the terms of other U.K. double taxation treaties. Similarly foreign retirees living in Cyprus are taxed at only 1/10th of the local rate; foreign retirees pay income tax at the rate of 5% per annum on all imported pensions, with an annual exemption of the first € 3,420.

 

Tax Benefits 

Cyprus levies taxation only on a remittance basis, that is, it taxes only assets that are brought into Cyprus, rather than the more punitive system of taxation on world-arising income that is practiced in may other countries. Residents of Cyprus can thus legally hold assets tax free in banks in tax havens such as the Isle of Man and Jersey, and suffer no taxation on bank interest or dividend income remaining outside Cyprus. No capital gains tax is charged on the remittance of capital assets to Cyprus such as money needed for the purchase of property and other similar capital assets such as motor vehicles.
 

Increasingly, Cyprus is used as a residential base for former residents of the U.K. Who wish to restructure their personal assets in a favorable tax jurisdiction, where U.K. capital gains tax and income tax exposure can be effectively and legally minimized. 

 

Duty Free Privileges 

A duty free car is one example of the privileges available to persons retiring to this lovely Island. A medium size saloon car will cost just over half the U.K. price. Personal effects, household goods and furniture can be imported free of any taxes by immigrant retirees provided they are for personal use and have been used for a while.