Cyprus Property Transfer Fees and Stamp Duty in Cyprus

Learn about Cyprus property transfer fees and stamp duty. Includes rates, exemptions, worked examples, and buyer protections. When purchasing property in Cyprus, buyers must account for two significant transaction costs: property transfer fees and stamp duty. These fees are mandatory under Cypriot law and must be settled before title deeds are transferred.

Cyprus Property Transfer Fees Explained

• Payable to the Department of Land and Surveys at the time of deed transfer.
• Rates are progressive:
– 3% on the first €85,000 of property value.
– 5% on €85,001–€170,000.
– 8% on amounts above €170,000.
• Reduced by 50% when VAT has not been paid on the property.
• Completely exempt if VAT was paid on the purchase.

Cyprus Stamp Duty Explained

• Payable on the Contract of Sale when signed.
• Calculated based on purchase price:
– 0% on amounts under €5,000.
– 0.15% on amounts €5,001–€170,000.
– 0.20% on amounts over €170,000.
• Maximum stamp duty capped at €20,000.

Exemptions and Reductions

• Transfer fee exemptions: If VAT was paid, no transfer fees are due.
• Reduced transfer fees: 50% reduction for properties without VAT.
• Stamp duty: Fixed rates apply without exemptions, except where the price is below €5,000.

Worked Example: Apartment Purchase in Cyprus

A buyer purchases an apartment for €150,000 without VAT:
• Transfer Fees = (3% on €85,000 = €2,550) + (5% on €65,000 = €3,250) = €5,800.
• With 50% reduction, total due = €2,900.
• Stamp Duty = (0.15% on €150,000) = €225.

Worked Example: Villa Purchase with VAT in Cyprus

A buyer purchases a €400,000 new villa with VAT:
• Transfer Fees = Exempt, as VAT is paid.
• Stamp Duty = (0.15% on €170,000 = €255) + (0.20% on €230,000 = €460) = €715.

Case Study: Resident Buyer in Cyprus

A Cypriot teacher bought a resale house in Larnaca for €120,000. Transfer fees (after 50% reduction) totaled €1,800. Stamp duty was €180. The buyer planned successfully by budgeting fees in advance.

Case Study: Non-Resident Investor in Cyprus

A UK investor purchased a €500,000 Limassol apartment with VAT. Transfer fees were exempt, but stamp duty reached €1,000. The investor avoided extra costs by understanding exemptions.

Checklist for Cyprus Property Buyers

1. Confirm if VAT applies; if yes, transfer fees are exempt.
2. Budget for transfer fees if VAT is not applied.
3. Calculate stamp duty before contract signing.
4. Pay stamp duty promptly to avoid penalties.
5. Ensure the lawyer registers the contract with the Land Registry.

FAQs on Cyprus Transfer Fees and Stamp Duty

Q: Are transfer fees negotiable?
A: No, they are statutory charges.

Q: Can transfer fees be avoided?
A: Only if VAT is paid on the property.

Q: Who pays stamp duty?
A: The buyer is responsible.

Q: When must stamp duty be paid?
A: Within 30 days of signing the Contract of Sale.

Q: Are fees the same for residents and foreigners?
A: Yes, charges are identical.

Final Recommendations

Property buyers in Cyprus should calculate transfer fees and stamp duty early in the purchase process. Understanding exemptions and reductions ensures accurate budgeting and prevents surprises during deed transfer.