DOING BUSINESS IN CYPRUS
What you need to know when buying property in Cyprus
Buying property in Cyprus is a relatively straightforward process with fees being among the lowest in Western Europe. Fees and taxes are detailed below.
- Sewage and Drainage Fees:
Annual Sewerage and Drainage fees are imposed on all registered immovable properties calculated on the estimated value of each property as per the Department of Land and Surveys valuation as at 01/01/2013 at the rate of 0.072%.
- Municipality Immovable Property Tax
An annual municipality tax is imposed on all registered immovable properties calculated on the estimated value of each property as per the Department of Land and Surveys valuation as at 01/01/2013 at the rate of 0.02335%.
- Other Municipality Taxes
Refuse collection fees are charged annually by the Municipality Authority on all registered immovable properties. The amount charged by Larnaca Municipality is a standard fee of €170.
- Immovable Property Tax
This tax has been abolished since 01/01/2017.
- Electricity Authority and Water Board
The connection to the Water Supply System requires a deposit of €50 refundable on transfer of the property to another person.
The connection to the Electricity Network requires a deposit of €75 refundable on transfer of the property to another person.
The transfer of immovable property from one owner to another is subject to a transfer fee calculated on the market value of the property as estimated by the Department of Land and Surveys. The fee is paid by the acquirer to the Department of Land and Surveys.
If the transfer relates to a transaction subjected to VAT then exemption from transfer fees applies.
If the transfer relates to a transaction not subjected to VAT then the acquirer will be burdened with 50% of the standard rates below.
