Understanding Property Taxes in Cyprus

Understanding Property Taxes in Cyprus

Introduction

Understanding property taxes is crucial for property owners and investors in Cyprus. This guide provides an overview of the key property taxes, rates, and regulations to help you navigate the tax landscape effectively.

Immovable Property Tax (IPT)

Immovable Property Tax (IPT) was abolished in 2017. Previously, it was levied annually on the market value of the property as of 1 January 1980. Although IPT is no longer applicable, it is essential to stay updated on any potential changes to tax legislation.

Transfer Fees

Transfer fees are payable when a property is transferred to a new owner. The rates are calculated based on the property's market value and range from 3% to 8%. Discounts may apply if VAT was paid on the property purchase.

Capital Gains Tax

Capital Gains Tax (CGT) is imposed on the profit from the sale of property at a rate of 20%. Certain exemptions and deductions may apply, such as the principal residence exemption and allowances for property improvements.

Stamp Duty

Stamp duty is payable on documents relating to property transactions. The rates vary based on the property value, with a maximum rate of 0.20%. Stamp duty must be paid within 30 days of signing the sale agreement.

Inheritance Tax

Cyprus abolished inheritance tax in 2000. As a result, no tax is levied on inherited property, making Cyprus an attractive destination for estate planning and property succession.

Conclusion

Understanding property taxes in Cyprus is essential for property owners and investors. By staying informed about transfer fees, capital gains tax, stamp duty, and other relevant taxes, you can effectively manage your property investments and ensure compliance with tax regulations.

Our Services

At TEFL, we offer a comprehensive range of services to help you understand and manage property taxes in Cyprus. Our professional team provides:

• Tax Consultation: Expert advice on property taxes and tax planning strategies.
• Transaction Support: Assistance with property transfers, including calculating and paying transfer fees.
• Capital Gains Tax Management: Guidance on minimizing CGT liabilities and maximizing exemptions.
• Compliance Services: Support in ensuring compliance with all relevant tax regulations.

Contact us today to take advantage of these services and manage your property taxes effectively!

Learn about property taxes in Cyprus, including transfer fees, capital gains tax, stamp duty, and inheritance tax. Let our expert team help you navigate the tax landscape and optimize your property investments in Cyprus.