Transfer fees tax for title deeds on buying property in Cyprus

All properties attract a transfer fees tax for the title deeds which is payable to the Government via the Land Registry.
The actual payment is affected by the price of the property and the number of purchasers. The most expensive way to purchase is in a sole name, so you may wish to consider adding family names to the title deed.

On buying any immovable property in Cyprus every such transaction attracts two major taxes to be paid – a)Stamp Duty and b)Transfer Fee tax for the title deeds.

a) STAMP DUTY:

For Agreements with a value up to €170,000 the Stamp Duty payable is calculated as 0.15%

For Agreements with a value exceeding €170,000 it’s 0.20%

Thus, a property costing €250,000 the Stamp Duty will be €415

€170,000 at 0.15% – €255
€80,000 at 0.20% – €160
Total: €415

b) TRANSFER FEES FOR TITLE DEEDS:

The maximum number of purchasers to be named on the title deed is four. Please also remember that naming a minor as an owner on the property may have a detrimental effect as you have to have a Court Order to sell it before they reach the age of majority (18 years).

Each person to be named on the title deed has an initial allowance of 85,430 Euros, whereby the tax rate is 3%. The next band after the allowance is used up is at 5% and thereafter 8%.

For example:

A villa costing 250,000 Euros being purchased by one person:

85,430 Euros @ 3% – 2,562.90 Euros

85,430 Euros @ 5% – 4,271.50 Euros

79,140 Euros @ 8% – 6,331.20 Euros

Total Transfer Tax = 13,165.60 Euros*

LESS 50% DISCOUNT*

A villa costing 250,000 Euros being purchased by two persons:

85,430 Euros @ 3% x 2 persons = 170,860 @ 3% = 5,125.80 Euros

The remainder of the 250,000 Euros purchase price = 79,140 Euros @ 5% = 3,957 Euros

Total Transfer Tax = 9,082.80 Euros*

LESS 50% DISCOUNT*

A villa costing 250,000 Euros being purchased by three persons:

85,430 Euros @ 3% x 3 persons = 256,290 therefore the whole of the purchase price is exceeded, so the calculation is 250,000 Euros @ 3% = 7,500 Euros

Total Transfer Tax = 7,500.00 Euros*

LESS 50% DISCOUNT*

**In addition to the transfer fees there is a small sum to cover maps and title deeds

Please also remember that the property may not be valued on transfer day at the original purchase price.

If we take the example of a property costing 400,000 Euros

If purchased by one person:

85,430 Euros @ 3% – 2,562.90 Euros

85,430 Euros @ 5% – 4,271.50 Euros

229,140 Euros @ 8% – 18,331.20 Euros

Total Transfer Tax = 25,165.60 Euros*

LESS 50% DISCOUNT*

If purchased by two persons: