Home | Contact Us 

List your
List your property with us by filling in a simple form. click on the button below.
Cyprus is a popular place for the acquisition by foreigners of holiday houses. The popularity is attributed to many factors, like low cost of living and its high standards, the hospitality of the local population, the attractive climate and the sense of security

Buying property in Cyprus

Foreign nationals are permitted to buy either a house, villa or apartment or a building plot that is no larger than three donums {4,1014m2}. Personnel working in an offshore company may also buy premises for their business as long as it meets certain criteria, or they can buy a place of residence for their foreign - provided that it is registered in the employee's name. Properties in Cyprus are freehold and after completing the purchase agreement the foreign buyer must apply to the Council of Ministers for permission to acquire that property in Cyprus . But there is no cause for concern as this is merely a formality and the procedure can be completed by a lawyer acting for the vendor.


Foreign investments in immovable property

The location of Cyprus in the eastern Mediterranean at the crossroads of Europe, Asia and Africa, the safe and protective legal system, the perfect infrastructure, coupled with regular communication with all parts of the world, the relatively low cost of living, its excellent climate and the friendliness and hospitality of its people, are just some of the reasons that have made Cyprus attractive to foreign investors for over 20 years now.

Foreigners who seek to invest in immovable property in Cyprus may be classified in the following four main categories:

(a) Retired residents

These are people who settle permanently in Cyprus upon retirement. A series of incentives is given by the Cyprus Government to retired people, including duty-free facilities and very low taxation of their income which emanates from abroad. These people may also enjoy, under certain circumstances, the benefits of the Double Taxation Treaty of their country of origin with Cyprus , if there is one. Cyprus has signed 26 such treaties, regulating in effect tax relations with over 40 countries.

(b) Employed residents

This category includes foreigners who live indefinitely or for a fixed period of time in Cyprus as employees, either of their own offshore company or of a local or offshore firm, and who choose to purchase their own property in Cyprus rather than live in rented premises.

In this category are also included offshore companies purchasing houses for their Directors.

(c) Holiday Makers - Speculators

These people purchase properties in Cyprus as holiday homes or for possible permanent places of abode upon retirement, or for the sale thereof with a reasonable profit at a later stage.

Profits realized by foreigners from the sale of immovable property may be expatriated under certain restrictions.

(d) Business investors

These are foreign individuals and companies who acquire property in Cyprus for tourist or industrial purposes, making use of the location and climate of Cyprus , the excellent infrastructure and the various incentives offered for these purposes, especially in the area of taxation. To this end, the Free Trade Zone structure of Cyprus offers great inducements ranging from the provision of all modern facilities to low tax or tax incentive status.

The Stamp Law

The Stamp Law defines the revenue stamps payable on contracts in accordance with the purchase price as follows:

(a) For a purchase price up to CY,100.000, the revenue stamp is CY,1.50 per thousand.

(b) For a purchase price exceeding CY,100.000, the revenue stamp is CY,2.00 on every thousand over CY,100.000.

Thus, the revenue stamp on a contract for CY,150.000 will be CY,250 i.e. CY,150 for the first CY,100.000 (0.15%) and CY,100 for the remaining CY,50.000 (0.20%).

The absence of the revenue stamp does not render a contract null or void but it cannot be used in Court proceedings or for the transfer of ownership of property in the Land Registry. Unstamped contracts may be used as above if properly stamped at the time of such use, in which case a fine is also imposed according to the value and the time of execution of the relevant contract.

Capital Gains Tax

On disposal of the property, there will be capital gains tax at the rate of 20 per cent on the gain.  The first C£10,000 (or C£50,000 in the case of one's private residence) is exempt and there is also an indexation allowance.  However, there is no tax if the property was acquired between 1 August 1980 and 13 July 1990 with foreign exchange imported into the Republic.

Foreigner means any person who is not a citizen of the Republic and includes a foreign controlled company.

Acquisition of real estate property includes:

Transfer by Registration
Long leases of more than 33 years
The acquisition and control of shares in a company, which owns real estate, if such an acquisition results in the company becoming controlled by foreigners.
the establishment of a trust or other set up for the benefit of a foreigner.

Immovable Property Tax

This tax is imposed on the market value of every registered owner whose immovable property exceeds C£100,000 must submit a declaration of immovable property (IR 301 and IR 302) and pay the respective tax every year before 30 September.

•  Fixed percentage per thousand:

[a] Upto £100.000 Nil

[b] £100.001 -£250.000 2.5

[c] £250.001 -£500.000 3.5

[d] £500.001 and over 4.0

EU Residents

From May 1 st 2004 Cyprus is a full member of European Union. This fact is making the procedure for purchasing a property in Cyprus easier.

Legal advice is strongly suggested before entering into a deal concerning immovable property in Cyprus / Please note that neither this information nor any information contained in this web site constitutes legal advice.

See also our FAQ page

Quick Search
Step 1
Step 2
Step 3
Find Me A
Have you found the property you want? let us do the search and we will find it for you!
Property Tools
 Metric Converter     

 Currency Converter

Designed & Developed by :
© 2005 Copyright Sun Villas Property Services. All rights reserved