Stamp Duty and Transfer Fees in Cyprus
Complete guide to stamp duty and transfer fees in Cyprus. Learn rates, exemptions, case studies, and practical tips for buyers and investors. Stamp duty and transfer fees are two critical costs buyers must understand when acquiring property in Cyprus. They apply at different stages of the property transaction process and depend on the property’s value and nature.
Cyprus Stamp Duty Explained
• Applied when signing the sale contract.
• Ensures contract registration at the Land Registry.
• Calculated on the purchase price or market value (whichever is higher).
Cyprus Stamp Duty Rates
• 0% on transactions up to €5,000.
• 0.15% on amounts between €5,001 and €170,000.
• 0.20% on amounts above €170,000.
• Maximum cap of €20,000 per transaction.
Cyprus Transfer Fees Explained
• Payable to the Department of Land and Surveys when title deeds are transferred.
• Calculated on the market value of the property on the date of transfer.
• Exempt if VAT was paid on the property purchase.
Cyprus Transfer Fee Rates
• 3% on the first €85,000 of property value.
• 5% on €85,001–€170,000.
• 8% on amounts above €170,000.
• Reduced by 50% if no VAT is applied on the purchase.
Exemptions and Reductions
• No transfer fees on properties where VAT has already been paid.
• Reduced transfer fees during government incentive periods.
• Exemptions for donations, inheritances, and reorganisations.
Case Study: New Property Purchase
A foreign buyer purchases a new villa in Paphos for €300,000:
• VAT: 5% reduced rate (€15,000).
• Stamp Duty: €510.
• Transfer Fees: Exempt (VAT applied).
Case Study: Resale Property Purchase
A Cypriot buyer acquires a resale apartment in Limassol for €200,000:
• Stamp Duty: €325.
• Transfer Fees: €3,300 (calculated with a reduced 50% rate).
Checklist for Cyprus Property Buyers
1. Budget for both stamp duty and transfer fees.
2. Verify if VAT applies to reduce or exempt transfer fees.
3. Ensure the contract is stamped within 30 days to avoid penalties.
4. Obtain receipts for tax compliance.
5. Check for government incentives on fee reductions.
FAQs on Cyprus Stamp Duty and Transfer Fees
Q: Are stamp duty and transfer fees the same?
A: No, stamp duty applies at contract signing, while transfer fees apply at deed transfer.
Q: Can foreigners avoid transfer fees?
A: Only if VAT was paid on the property.
Q: What happens if I don’t pay stamp duty on time?
A: Penalties and interest are charged.
Q: Do transfer fees depend on property type?
A: No, they depend on value, not type.
Q: Are there seasonal exemptions?
A: Sometimes, temporary government incentives apply.
Final Recommendations
Buyers in Cyprus should plan for stamp duty and transfer fees as part of their total property cost. Understanding exemptions and reductions can save significant amounts and prevent delays in deed transfer.