Legal & Financial

The Central Bank of Cyprus requires that acquired property must be paid for with external funds. Bank transfers and personal cheques are accepted.
As a company, we are happy to discuss the individual needs for each prospective buyer with regards to methods of payment. Demonstrating maximum flexibility, Chrysostomou & Theocharous Developers can propose a method of payment that matches your circumstances. In-house financing with long-term payment schedules can also be discussed.
Chrysostomou & Theocharous Developers can arrange foreign currency loans for non-Cypriot citizens. Loan Conditions vary slightly from one bank to another, but generally, a loan for 70-80% of the property’s value is granted, with a maximum repayment period of 15 years.

Legal Safeguards
The legal system in Cyprus is largely based on the British equivalent and safeguards the purchaser’s right in many ways. Above all, for the purchaser’s protection, the Land Registry in Cyprus provides a simple and effective legal instrument called the “Specific Performance”. Once the Sales Agreement is signed and a deposit paid, the contract is registered at the land registry office. This procedure protects the purchaser’s ownership rights until the title deeds are issued and transferred to their name. The contract, once held by the Land Registry, cannot be withdrawn by anyone, and therefore the property cannot be leased, sold, transferred or mortgaged. Only the purchaser is able to alter this status.
Transfer Fees

Transfer fees are a one-off payment borne by the purchaser and payable to the land registry in the district of your property’s location. The amount is based on a sliding scale as shown in the table below, and depends on the market value of your property on the date of purchase. The fee is due in cash when the title deeds are transferred into the purchaser’s name.

Property Value in EURO Transfer Fee (% on property value)
Up to 85,430 3
85,431 – 170,860 5
Over 170,861 8


One-off payment payable to the land registry in the district of your property’s location. Your lawyer will ensure this is transferred on your behalf. It is due within 30 days of registering the contract with the land registry.

Stamp Duty Rate in %
<   EURO 170,860
>= EURO 170,860


Tax & Duties
Immovable Property Tax.

The registered owner is liable for this annual tax which is based on the value of his/her property as of 1st January, 1980. Property with a value of up to EURO170,860 is exempt from property tax. For property values exceeding this amount the rates are:

Taxable Value EURO Annual Tax (% on Taxable Value)
Up to 170,860 Nil
170,861 – 427,150 0.25%
427,151 – 854,300 0.35%
Over 854,300 0.40%


Stamp duty
A one-off stamp duty is levied on the purchase of property in Cyprus. The rates are dependent on the contractual purchase amounts and payment is due within 30 days of signing the Sale Agreement. The amount is payable by the purchaser to the tax authorities.

Purchase Price in EURO
Stamp Duty in %
Up to 170,860 0.15
Over 170,860 0.20


Capital Gains Tax
It is levied at the rate of 20% on gains arising from the disposal of immovable property.
As a general rule, the gain is the difference between the sales proceeds adjusted by a cessation allowance, less the original cost of the property, capital improvements and transaction costs of the sale. Generous exemptions also in place, e.g. net capital gains up to EURO 17,086 earned from the disposal of your residence.

Estate Duty / Inheritance Tax
These were abolished as of 1st January, 2000.

The VAT rate is 15% as of January 1st, 2003. 15% VAT is applied on Real Estate as of May 1st, 2004.

Double Taxation Agreements
Cyprus has double-taxation agreements with Austria, Belarus, Belgium, Bulgaria, Canada, China, the Czech Republic, Hungary, India, Ireland, Italy, Kuwait, Kyrgyzstan, Malta, Mauritius, Norway, Poland, Romania, Russia, Singapore, Slovania, South Africa, Sweden, Syria, Tajikistan, United Kingdom, Unided States, Yugoslavia (former). The main purpose of these treaties is the avoidance of double taxation of income earned in any of the above countries. A credit is usually allowed against the tax levied by the country of the tax payer’s residence for taxes levied in the other country. Treaties are under negotiation with another 23 countries.

Duty Free Privileges
EU Nationals who become permanent residens in Cyprus and have owned a motor vehicle in the original of residence for at least six months, can bring their car to Cyprus exempt of any import tax. Furniture can be imported free of any taxes by Europeans or Non-Europeans who become permanet residens provided that they are for personal use and are not brand new.