Learn about Transfer Fees, Stamp Duty, and VAT when buying a property in Cyprus

Cyprus is an island with a lot to offer. It is one of the most attractive islands in the Mediterranean Sea for its sandy beaches, sea views and natural beauty. In addition, in recent years, it has become one of the places par excellence when it comes to investing in the purchase of a luxury villa, apartments, studios and much more. Buying property in Cyprus is a transaction that goes far beyond simply choosing properties for sale.

Prices in Cyprus are super affordable and have a number of tax benefits that attract many investors. To give us an idea, living is almost 20% cheaper than in other European countries. This has led to a significant number of individuals deciding to make financial investments on this island in recent years. Understanding the cost of buying a home is important.

The real estate market has undergone a notable change due to recent economic changes in Cyprus. Demand from local and foreign buyers was the main reason for the upward trend in house prices. The country's central policy of attracting foreign direct investment continues to support this surge in demand, despite soaring mortgage rates and a slowdown in lending. Moreover, the cost of building materials remains high, influenced by geopolitical factors, and the number of new residential buildings approved for construction has decreased.

Consequently, in view of this significant demand and the lack of available housing stock, the existing Cypriot property market is characterised by increased prices. It is important for investors to be aware that living and investment costs in Cyprus may no longer be as affordable as in previous years, and these factors may be as affordable as in previous years. Consider hiring a lawyer in addition to the services of an agent when purchasing property. For your transaction to be safe and secure, you need legal advice.

The legal costs associated with the purchase of property in Cyprus.

This is the best way to protect your assets. For now, know that the island's legal fees are charged as a percentage of the property's purchase price, which ranges from 1% to 2%, in addition to VAT. This service includes permit research, contract verification, seals and registrations to be carried out at government offices. In addition, keep in mind that the lawyer can draw up powers of attorney.

Stamp duty in Cyprus

Taxes You should know that in Cyprus, the buyer is the one who pays the stamp duty 30 days after the signing of the contract. This tax rate is 0.15% of the purchase price of the property, in properties that do not exceed 170,000 euros. This percentage rises to 0.2% for those properties above the mentioned amount.

VAT to pay when buying a property in Cyprus

VAT on property In Cyprus, properties must pay value added tax. There is a fundamental fact: those who buy a property for the first time pay 5%. In addition, if it is a used property, there is no need to pay VAT.

Transfer Fees in Cyprus

Transfer Fees If a property is purchased/sold, a transfer fee must be paid. The management is carried out by your lawyer, who transfers and registers the property in your name at the Cyprus Land Office. To calculate the rate, a sliding scale is used that ranges from 3% to 8%, always depending on the value of the property. In addition, the cost of transfer fees may change depending on the type of purchase, whether made by a single person or by several people.

Please note that transfer fees are based on the value of the property, as stipulated by the land registry on the day of the transaction. It's good to know that value-added tax properties are exempt from the transfer fees mentioned above. There are other lower costs when carrying out a real estate transaction.

Conclusion

What we can say is that these are the most important. In other articles, we will mention the expenses incurred when hiring a real estate agent. Now, know that on viotopo.com, you will find an excellent opportunity to sell your property or to get the vacation villa of your dreams. The good thing is to know that Cyprus is an island full of opportunities for those who want to live in the best place in the Mediterranean Sea.

Cities such as Paphos, Limassol, Nicosia and Larnaca, among others, offer the best that can be found in a place where the sun does not stop shining for more than 300 days a year. For centuries, the same sun has illuminated the history and culture of one of the most fantastic islands in the world.

For more information, see the official website of the Department of Lands and Surveys:

• https://www.gov.cy/en/digital-services/land-and-housing/buy-sell-transfer-property/ypologismos-telwn-metabibasis