Even if you are buying from a property developer in Cyprus always purchase your plot of land first from the developer with a seperate contract and save money. Why? What is the benefit? Land transfer fees are paid only when the title deeds are transferred to your name. When the title deeds to the plot are first transferred to your name a transfer tax is imposed. But before a house is built on the plot, as the law stands now, you will NOT be required to pay any transfer tax on the value of the house as you did NOT purchase a plot with a building on it. Also there is no contract filed at the land registry which states that you have bought a plot and house for am X amount. See how much you can save !! TRANSFER FEES The purchaser will be liable to pay the following transfer fees for the property acquired, when this is registered in their name at the District Lands office. The fees are charged on the propertys market value at the date of purchase. Value of Property Cy
Transfer Fee Rate % on property value
Up to 50,000 3.0%
50,001 - 100,000 5.0%
Over 100,000 8.0%
For example:- Transfer fee of a property valued at CY130,000, provided such property is in one name the transfer fee will be:- 3% for the first CY50,000 = CY1,500
5% for CY50,000 to CY100,000 = CY2,500
8% for CY30,000 CY2.400
Total Transfer Fee CY6,400
Should the property be in joint names the transfer fee will be:- 3% for the first CY50,000 X 2 = CY100,000 = CY3,000
5% for CY30,000 = CY1,500
Total Transfer Fee CY4,500
IMMOVABLE PROPERTY TAX |
