Additional costs one needs to be aware of upon purchasing a Property in Cyprus are:

Stamp Duty and Legal Fees

The Stamp Duty is required to be paid within 30 days of signing the Purchase Contract, it is levied at the rate of 0.15% up to the value of EUR170,860.14 and thereafter at the rate of 0.2%.

It is ALWAYS adviseable to appoint an independent Solicitor in Cyprus. The fees depend on the property price and the Solicitor but the charges are within the Cyprus Bar Association guidelines and are generally reasonable.

Title Deeds

The Transfer Fee is the most serious expense over and above the sale price that the Purchaser bears and is calculated as follows based on the evaluation of the property (normally it is based on the purchase price, unless the District Land Officer evaluates the property at at higher value):

3% on the first EUR 85,430.07 of the value of the property
5% on the second EUR 85,430.07
8% on any amount above 170,860.14

If there are two purchasers on the contract of sale then the price is divided by two and therefore they pay less Transfer Fees, as the first EUR85,430.07 (e.g. EUR 170,860.14 together) is 3% and the second EUR85,430.07 per person is 5% etc.

This matter is something that everyone needs to understand clearly. If the property has been completed for some time and the separate Title Deed is available the purchaser can acquire it immediately as soon as he/she obtains the Council of Ministers Permit, the entire case can then be completed without delay.

In cases where the purchaser buys a property, which is not yet built or recently completed he/she cannot have the Title Deed on his/her name since the separate Title Deeds are not yet available. In this case the Vendor has a Title Deed of the land on whichever project is under construction and the property will be secured in the Purchasers name by way of a Specific Performance.

The issurance of the separate Titles Deeds is a long procedure which the Developer takes through the various appropriate authorities before they are issued; the Vendor first applies and obtains the Town Planning Permit and then the Building permit. After the completion of the property the Vendor applies for the Certificate of Approval and Divisional License etc. The last two Certificates/Licenses can only be issued after the completion of the project and this can take some time for the Government departments to inspect the project and issue them.

In cases where the Purchaser buys a property that's part of a project under construction, he/she must expect his/her separate Title Deed to be ready in approximately 4 to 6 years from delivery of the property. When Purchasers acquire their Title Deed, it is then time for them to pay their Transfer Fees to the Government.

If at anytime after the signing of the Agreement the Purchaser has a desire to sell their property before receiving their individual Title Deed he/she has every right in doing so as they are deemed to be the beneficial owners of the Property providing that the Purchaser has fulfilled all their obligations to the Vendor.

Property sales in Cyprus are subject to Capital Gains Tax at a rate of 20%; however, the first EUR17,086 of profit is exempt.

Immovable Property Tax (IPT)

This is a Government imposed Tax which is levied on the value of the property. Until the separate Title Deeds for each property are issued by the District Land Office the Developer as the registered owner pays the relevant taxes once a year for all properties based on the estimated 1980 value of the properties as a whole in accordance with the instructions given by the Tax Office. the Developer then uses the same percent estimation on the contract value to allocate the taxes to each individual owner of each property.

Property Value                                            Rate (%)
Up to EUR170,860                                       Exempt
                                                                (when separate title deeds are issued)
EUR170,860 to EUR427,150                          0.25
EUR 427,151 to EUR854,301                         0.35
EUR854,302 and above                                0.4

Sewerage Board of Paphos (SBP) This is a tax collected by the Munipality of Pafos in order to put the whole area onto the mains sewerage line, it will be payable upon receipt of your individual Title Deed.

Municipality/Council tax is paid directly by the individual owners to Municipality or Town Council and it is billed by the Water Board once a year. This is for street cleaning, street lighting, refuse collection etc.

Upon purchasing a property on a complex you will be required to pay Common Expenses, this is a fee for the maintenance of the communal areas on your project as per contract of Sale and/or Management Agreement. This charge covers the following:

Landscape and Garden Maintenance
Pool and other common facilities maintenance
Pool Chemicals
Water Supply for common areas
Electricity supply for common areas
Insurance cover for common areas
Property management services of the whole project, not individual property management
Any gardening/cleaning equipment needed to perform the above tasks

Common expenses are not applicable for the properties which don't have commonly owned facilities (eg: private Villas with individual pools).

In addition to the above expenses you will have to pay the electricity and water consumption for which there are separate meters for each property.