CYPRUS

1. We recommend the purchase of property only be in the Greek occupied area of the island. The North part of the island which is occupied by the Turkish community, laws on property ownerships is still not clear.
2. Any citizen of the European Union can buy property in Cyprus without any problem.
3. Upon purchasing property, the new owner receives a residence permit.
4. The distribution of properties is registered in the land registry.
5. Land transfer tax depends of the property value. Up to the amount of CYP 50.000 the percentage is 3%, if the value is higher than CYP 100.000 the percentage is then 6%. A reduction of 50% of the tax payment is given if the contract is signed in both names for a married couple.
6. There is also a Legal Stamp fee which is calculated according to the value of the property. This fee is something between 0,15% - 0,2%.
7. As of 2004 a new owner must pay a value added tax of 15% in cases of the purchase of a new building. As of 2007 this tax must also be paid for land property. There is no tax payment when re-selling properties.
8. The local property tax depends on the property value. For a property value of up to CYP 100.000 the tax percentage is 0%. If the property value is higher than CYP 500.000 tax is 4%.
9. There is no estate duty.
10. Capital gains tax is 20% of the resell profit.