Law & Finance

Law & Finance

Rising popularity

Cyprus is becoming increasingly popular as a place to live in retirement, many are also buying a vacation home. The attraction of Cyprus is due to a unique combination of factors such as the relatively low cost of living at its high quality, friendly attitude of the local population, excellent climate and very low crime rate.

Property in Cyprus has been steadily increasing in price, sometimes by leaps and bounds, while the prices of second homes today is 20% lower than in Portugal, 30% lower than in Spain, and about 50% lower than in France or Italy.

 

A. Immovable Property Ownership Tax

Immovable Property Tax has been abolished as of 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 year). Immovable Property Tax was payable to the Inland Revenue Department of the Republic of Cyprus.

Rates are as follows:

Value of Property                    Rate
(as of 1/1/1980)

Up to €40.000                             0,6%

€ 40.001 – €120.000                0,8%
€120.001 – €170.000               0,9%
€170.001 – €300.000               1,1%
€300.001 – €500.000              1,3%
€500.001 – €800.000              1,5%
€800.001 – €3.000.000           1,7%
Over €3.000.000                       1,9%
B. Local Authority Fees
Depending on the size of your property, local authorities charge between €85 – €500 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local municipal authority.
C. Municipality Tax
As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1‰ – 2‰. Municipality tax is payable to your local municipal authority.
D. Sewerage Tax
As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3‰ – 7‰. Sewerage taxes are payable annually to your local sewerage board.