Immovable Property Tax has been abolished from the 1st of January 2017.
Until the end of 2016, the registered owner of the property, was liable to an annual Immovable Property Ownership tax calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the relevant year). Immovable Property Tax was payable to the Inland Revenue Department of the Republic of Cyprus.
Immovable Property Tax rates
Transfer Fees for Immovable Property
On a transfer of immovable property transfer fees are paid by the acquirer to the Department of Land and Surveys. The transfer fees are calculated based on the market value of the property as it is estimated by the Department of Land and Surveys.
Transfer Fees rates
The above rates are reduced by 50% except in the case of transfers under Part VI and Part VIA of the Transfers and Mortgages of Immovable Property Law.
In the case of free transfers of property between the following parties, the transfer fees are calculated on the value of the property as at 1 January 2013 at the following rates:
i. from parents to children - 0%
ii. between spouses – 0,1%
iii. between third degree relatives – 0,1%
Exemption from transfer fees
The following transfers are exempt from transfer fees:
i. in the context of bankruptcy, liquidation, disposal of mortgaged immovable property by the lender
ii. under a qualifying reorganisation
iii. transfers that are subject to VAT
The above should be used only as a source of general information and it is not intended to provide, and should not be relied on for tax, legal or accounting advice. It is also subject to Disclaimer. Before engaging in any transaction you should seek for professional advice.
For further details on these issues, please do not hesitate to contact us.