ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN CYPRUS]

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The holders of the permanent residence permit are entitled to apply for a Schengen Visa through any Schengen European Embassy. D. TAX The main types of tax that may be relevant to a real estate sale and purchase transaction (beside stamp duty and transfer fees which were described in section B above), are VAT and Capital Gains Tax. VAT may apply at the existing rate of 5%, 19% or it may not apply at all (depending on the type of the property purchased, the intended use by the purchaser and the condition (new or used) of the property. Capital Gains Tax is imposed on the seller and is calculated where there is a “gain” from the sale (e.g., where the seller has purchased the property at a lower price and sells it at a higher). Generally, Capital Gains Tax is imposed at the rate of 20% subject to exemptions which may apply to reduce or exclude it. Property Taxes are subject to various types arising from the ownership of the property. 1. Local Authority Fees are calculating on the size of the property by approximately €85 to €256 per year. 2. Municipality Taxes are applied by each local municipality to the owners of the immovable property. The municipality tax is calculated on the value of the property, and it rates from 0.1 % to 0.2%. 3. Sewerage Taxes are applied by each local Sewerage board to the owners of the immovable property and the rates vary from 0.3% to 0.35%. Inheritance Tax is abolished in Cyprus since 1/1/2000. It is advisable to consult with a tax expert before concluding a real estate transaction.

Disclaimer. This note is for general guidance only. Specific legal advice should be obtained in all cases. LLPO Law Firm accept no liability for anything contained in this brochure or for any reader who relies on its content. Before any action or decision are taken by you or your business, you should seek specific legal advice.

ILN Real Estate Group – Buying and Selling Real Estate Series

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