New taxes on real estate in the Republic of Cyprus — 2018.

  • 12 февраля 2018 в 17:49:48

  1. Tax for the Transfer of Ownership. In the case when the purchase of real estate (residential and non-residential) is settled by VAT, then this tax is not paid. If the property is not subject to VAT, the property transfer tax is reduced by 50%. The base value of the object for calculation of the collection is determined by the Department of Land Resources at its own discretion, on the website of which you can use the online calculator to determine the amount of this tax.
  2. Capital gains tax. In the case of the sale of real estate (residential and non-residential), the seller must pay income tax, which is 20% of the transaction amount. In some cases, an increase in the purchase price may be possible, taking into account credit servicing, expenses for improving the real estate object, etc. Capital gains tax can be avoided (for real estate acquired in 2015, 2016), subject to certain conditions.
  3. VAT (Value Added Tax). If you purchase real estate directly from the developer, VAT will be 19%. The same amount of tax will also be paid for the purchase of undeveloped land for construction, on which construction is planned in the future. The VAT rate on preferential terms (5%) applies to the first two hundred square meters of the object purchased or built with the purpose of further permanent residence of the owner in it for 10 years. The remaining area will be taxed at a rate of 19%.
  4. There was no change in the stamp duty.
  5. Owners of real estate must pay an annual municipal tax (garbage collection, repair and maintenance of streets, etc.). The cost of this tax is calculated individually for each municipality based on the value of the property in the prices of 2013.

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