The tax year in Cyprus is the calendar year ending on December 31st.
Cyprus’s tax system is similar to that of the UK. Cyprus has a Double-Taxation Treaty with many countries, including the UK. This means that a property investor or homebuyer should not be subjected to duplicate taxes, or paying tax twice. Taxes due in Cyprus are offset against domestic taxes, where such an agreement is in place.
Cyprus property transaction taxes - for the purchase
Stamp duty on Property in Cyprus
Is levied within the range of 1.5%-2% depending on property value.
VAT on property in Cyprus
VAT rate is 19% (2014). A reduced rate of VAT is charged on some products e.g. 5% for a primary home purchase. Property letting services are exempt from VAT.
Cypriot Property Capital Gains tax
Levied at 20% and based on the increase in the price of the property. In addition, the full value of the property may be transferred abroad out of Cyprus at the time of completion, if you are selling.
There is no inheritance tax or Gift Tax in Cyprus. This was abolished in January 2000
Cyprus Holiday Home, Property in Cyprus - Relevant ongoing Property taxes
Cyprus Property - Income tax
Income Tax is charged only on income earned in Cyprus. This includes income from letting property, which is taxed at progressive rates of 20-35%, depending on level of income.
A foreign national staying in Cyprus for more than 180 days during a tax year (1 January to 31 December) is considered a resident. The 180 days need to be consecutive.
Cyprus Property Tax
Rates range from 6-19% and apply per owner not per property
Municipality Tax: there may also be an annual charge levied by the municipal authorities of circa €150, dependent on property size and type
Please note: this page is provided as guidance only to home buyers in layman's terms
To give you more background as to why you might consider investing in Cyprus, go to the Cyprus Property - Why Invest section, or maybe look at the individual towns and cities profiled in Cyprus Towns & Cities section.
To see what property is available in Cyprus, click here on Cyprus Property. If you cannot find what you like, please contact us on +44 (0)1932 849536, as we have lots more properties than are shown on the website.
Property Venture® is an award-winning, UK-based agency for overseas property who helps people buy investment property and holiday homes in Europe, more easily and safely than they can on their own, because we offer grounded common-sense advice.
The focus is mainly greater Europe: Poland property, UK investments, Spain property, Turkey property, Cyprus property
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