What tax will have to be paid when buying property on the secondary market in Cyprus, and how to correctly calculate this fee – let’s consider in the article.
There is a fundamental difference in tax charges between buying new property in Cyprus and acquiring secondary housing.
When purchasing property that has not yet been registered, VAT will be included in the price of the property.
VAT is not charged on subsequent property resale. Instead, the buyer will have to pay a title fee (Property Transfer Fee) at the time of property ownership transfer in the Department of Land Registry.
If the purchase of property is not subject to VAT, a 50% discount is applied when calculating the title fee.
It is worth noting that it will only be possible to calculate the exact amount of the title fee approximately, and the market value of the property may differ significantly from the price agreed upon by the seller and the buyer. The exact market value of the property will be provided by the Land Registry, where statistics on real estate transactions in each city and district of Cyprus are kept.
If property ownership is transferred to another person without any financial obligations between the parties, the title fee is calculated as follows:
- From parents to children – 0% of the market value of the property
- Between spouses – 0.01%
- Between third-degree relatives – 0.01%
- From a ward to a guardian – 50 euros
