Taxes and Fees

Applicable Fees When Purchasing A Property Or Signing A Contract Of Sale

1) Stamp Duty Land Tax

Stamp Duty Land Tax, or just simply Stamp Duty, are taxes applied on legal documents used during the record transaction transfer of real estate assets during a single property purchase. Said taxes are placed on purchases of both residential or commercial properties including leasehold homes, but-to-let, second homes, and plots of land. Rates of taxation are based on and increase depending on the value of the property.

The purchaser is liable for said Stamp Duty tax at a rate of 0.15% on any property with a value up to €170,860.14 after the deduction €5,000 allowance. Above this, the rate then becomes 0.20%.

All Stamp Duty taxes must be paid within 30 days of signing a contract of sale.

2) Land Registry Deposit Fee

A €50 deposit fee must be paid by the purchaser of a property upon depositing a signed contract of sale to the Cyprus Land Registry.

3) VAT On Property

A 19% Standard Rate of VAT is applicable to all goods and services in Cyprus.

No VAT is applied to purchases of land.

EXCEPTION – If you are a first time buyer who purchases a property for permanent residence or as a holiday home, you are thereby entitled to a lower rate of VAT at 5%. Said lower rate is at the discretion of the Cyprus VAT office.

Applicable Fees As The Owner Of A Property

1) Local Municipality Fees

Depending on the size of the property, the Larnaca municipality charges between €85 to €256 a year for municipal services such as garbage collection, street lighting, and sewage.

2) Communal Services Fees

If you have purchased a property that has communal facilities such as a swimming pool, jacuzzi, spa, etc.- communal fees may be applied to cover an owner’s share of the cost of said amenities and maintenance. Typically, such charges range between €30 -€50 on a monthly basis.

3) Municipal Tax

As a property owner, you are expected to pay a yearly Municipal Tax based on the property's market value. Prices range from 0.001% to 0.002% and are payable to the Larnaca’ s municipal government.

4) Sewage Tax

Annual Sewerage Tax based on the market value of the property are applicable to all homeowners. Rates range from 0.03% – 0.035% and are payable annually to the Larnaca sewerage board.

5) Utilities

Utility costs include telecommunication, water, and electricity costs and are dependent on consumption. Such charges are usually payable on a monthly or quarterly basis and average rates vary based on development, area, and type of property.

6) Insurance

As Cyprus is located within the European Union, the procedure of filing and claiming insurance is therefore similar to that of other EU countries. Home insurance is on average 1.65% of the property’s value and content insurance is based on 2% of their total value. Exemptions

1) Privileges

Personal items, home goods, and furniture may be imported duty-free by immigrant retirees as long as they are for personal use and have been utilized for at least one year. Additionally, there is no charge on automobiles, and retired couples get a further exemption of two duty-free automobiles.

2) Advantages

Pension-drawing retirees are free from withholding taxes at source and may be taxed at a nominal rate of roughly 4% or less. In addition, Cyprus has Double Taxation Treaties with a number of European and non-European nations, preventing its citizens from being taxed twice.

DISCLAIMER: All information portrayed here should serve solely as a guideline for real estate and property taxes within Larnaca, Cyprus. Differences may occur between the amounts provided herein and those actually charged, depending on the property and individual case. For more information or clarification please email us at: [email protected].