When buying a property in Cyprus, during the transfer of the property from the seller to the buyer, the buyer is obliged to pay transfer fees.   In this post there is some basic information about property transfer fees in Cyprus. Yet, it can cover most of your main questions.

The amount can be calculated as seen below:
  • For properties with market value* up to €85,000 transfer fees are 3%.
  • For properties with market value above €85,000 up to €170,000 transfer fees are 5%.
  • For properties with market value over €170,000 transfer fees are 8%.

 

This means that for example:

  1. For a property with market value €80,000 during transfer in one name there is a 3% charge, meaning €2,400.
  2. For a property with market value €165,000 during transfer in one name there is a 3% charge until €85,000 property value and a 5% from €85,000 to €165,000, meaning €2,400 +€4,000 = €6,400.
  3. For a property with market value €465,000 during transfer in one name there is a 3% charge until €85,000 property value, a 5% from €85,000 to €165,000 and an 8% charge from €170,000 to €465,00, meaning €2,400 + €4,000 + €24,000= €30,400.

 

For properties transferred to a couple or to two individuals, each buyer pays transfer fees on ½  share of the property value. This means, for example, that, if for a property with market value €230,000 during transfer there is a 3% charge until €85,000 property value and a 5% from €85,000 to €165,000 for each share, a couple or to two individuals will pay their half share as that: share A: 3% of €85,000 and 5% of €30,000, while share B:  3% of €85,000 and 5% of €30,000, meaning: €2,400 + €1,500 + €2,400 + €1,500 = €7,800.


For the time being, by decision of the Cyprus Government, the transfer fees have been reduced to 50% for properties without VAT and properties that are subject to VAT will be exempt from the above transfer fees.
  •  Example 1: for a property transfer with purchasing value of €465,000, if the property is subject to VAT, transfer fees amount is €0.
  • Example 2: for a property transfer with purchasing value of €465,000, if the property is not subject to VAT, transfer fees amount is 50% of €30,400, meaning €15,200.
Transfer fees reduction by 50% on all property sales is taking place until 31/12/2016. Such reduction will not be applicable in case of a re-sale of property sold by public auction.
This decision by the Cyprus Government can save a serious amount of cost when buying a property. It is advisable not to miss this opportunity.

*Keep in mind that transfer fees are applicable to the larger amount between buying price and estimated price by the Land and Surveys department.

Contact us  for more details and questions.