Responsibilities of Property Ownership in Cyprus.
(The Immovable Property (Transfer and Mortgage) Law 9/65)
- Local Taxes
- Capital Gains Tax on Property on sale of property or if you are a Buyer you are responsible to pay the Property Transfer Fees and The stamp Duty
The final step in the sale of property is the actual transfer of the Title Deeds from the seller to the buyer. Transfer of immovable property means the passing of the title of immovable property from one person (the transferor) to another (the transferee) by the voluntary act of such persons.
This tax, payable by the purchaser, is 0.15% up to Euros171,000 of value and then plus 0.2% for values in excess of this amount.
Additional costs: Transter of Utilities to new owner: Water, Electricity, Sewerage, Municipality and Communal Fees
The Buyer Responsibility : Property Transfer Fees:
The Title Transfer Fee is payable by the purchaser on a graduated scale as follows :
|Value of property in Euros||Transfer Tax rate|
|Up to Euros 85,430||3%|
|From Euros 85,431 → 171,000||5%|
- Completion of Declaration of Transfer of Immovable Property (Form N.270)
- The Title Deeds of the property under transfer must be attached
- Completion of Form N.313 which states all items for which the seller has to obtain clearing certificates/ or the receipts of payment
- Immovable Property Tax
- Capital gains tax
Receipts of payment for all the above taxes and duties may be obtained from the Internal Revenue Department
- Sewerage Board Tax – receipt obtained from the Sewerage Board
- Town rate – receipt obtained from municipality in whose boundaries the property is situated
- Communal rate – receipt obtained from the Community Council in whose boundaries the property is situated
Power of Attorney
Whilst the procedure of Transfer and Registration is relatively simple most sellers and buyers appoint their legal representatives and give them Power of Attorney to secure all the relevant certificates and complete the transfer process on their behalf. Any person competent to contract may appoint an agent in his/her dealings with third persons or to perform acts on his/her behalf.
For lawful acts relating to immovable property, it is necessary to present an express and written
instrument conferring such authority (power of attorney). Such instrument must be duly stamped.
The Power of Attorney can be General or Specific –
Normally there are two types of fees that apply:: Legal Fees and Disbursement Fees.
Disbursements do not form part of your lawyer’s own costs or charges. Disbursement are fees that your lawyer has paid to other individuals/organisations to secure all required documentation mentioned above but also include registration and stamps/certification and lodgment of Power of Attorney.
All documents mentioned above must be completed and signed by the interested persons and deposited with the Lands Office accepting the transfer