Transfer Fees and Stamp Duties in Cyprus
Guide to transfer fees and stamp duty in Cyprus. Learn how fees are calculated, exemptions, reductions, and legal obligations for property buyers. When purchasing property in Cyprus, buyers must account for both transfer fees and stamp duties. These costs are essential parts of the transaction and vary based on property value and conditions.
Cyprus Property Transfer Fees
• Payable to the Department of Lands and Surveys upon transfer of ownership.
• Calculated on the property’s market value at the time of transfer.
• Rates: 3% on the first €85,000, 5% on €85,001–€170,000, and 8% above €170,000.
• Exemptions: No transfer fees on properties subject to VAT.
• Discounts: Transfer fees reduced by 50% in most other cases.
Cyprus Stamp Duties
• Payable when signing the contract of sale.
• Calculated on the purchase price:
– 0% on transactions up to €5,000.
– 0.15% on transactions between €5,001 and €170,000.
– 0.20% on amounts above €170,000.
• Maximum stamp duty capped at €20,000 per contract.
• Must be paid within 30 days of signing to avoid penalties.
Cyprus Legal Obligations for Buyers
• Buyers are responsible for paying both transfer fees and stamp duty.
• Payment ensures the contract can be lodged with the Land Registry.
• Non-payment risks legal disputes and inability to secure Title Deeds.
Case Study: Apartment Purchase in Larnaca
In 2020, a buyer purchased a €200,000 apartment in Larnaca. They paid 50% reduced transfer fees (€3,400) and €340 in stamp duty, totalling €3,740 in transaction costs.
Case Study: Villa Purchase in Limassol with VAT
A foreign investor purchased a new-build villa in Limassol for €500,000 (subject to VAT). They were exempt from transfer fees but paid €850 in stamp duty.
Checklist for Buyers Paying Fees and Duties
1. Confirm if VAT applies to your property purchase.
2. Calculate applicable transfer fees using the sliding scale.
3. Pay stamp duty within 30 days of signing.
4. Retain official receipts for tax and legal purposes.
5. Ensure all fees are paid before applying for Title Deeds.
FAQs on Transfer Fees and Stamp Duties
Q: Do I pay both transfer fees and VAT?
A: No, properties subject to VAT are exempt from transfer fees.
Q: Can stamp duty be avoided?
A: No, but it is capped at €20,000 per contract.
Q: Who pays the fees, buyer or seller?
A: The buyer is responsible for both.
Q: What happens if I delay payment?
A: Penalties apply for late stamp duty, and transfer cannot proceed without payment of fees.
Q: Are fees refundable if the sale is cancelled?
A: No, once paid, they are non-refundable.
Final Recommendations
Transfer fees and stamp duties are critical costs in Cyprus property transactions. Buyers should calculate them early in the budgeting process and ensure compliance to avoid delays or penalties.