Property Sales Process | Selling Costs
Overview:
Selling costs vary when selling property in
Transfer taxes
Transfers of real estate are subject to transfer fees calculated on the market value of the real estate as estimated by the Land Registry department. Transfer tax on the value of Cypriot real estate up to CYP 100,000 is calculated as follows:
Market Value (Euro)
€1 - €50,000
Rate = 3%
€50,001 - €100,000
Rate = 5%
Transfer tax on the value of Cypriot real estate in excess of CYP 100,000 (€170,000) is charged at 8%.
Should the property be bought by a couple, the rate is split in two, i.e. on CYP 200,000 (€340,000) the first 100,000 pounds the wife will have to pay tax at 3% on CYP 50,000 (€85,000) as will the husband. On the second CYP 100,000 the wife & husband will pay 5% on each CYP 50,000. The registered owner of the property is liable for this annual tax & it is based upon the value of his property.
Capital Gains Tax
Capital gains tax is payable by both residents and non-residents at a rate of 20 per cent on gains from the disposal of immovable property in Cyprus.
If the property is a principal residence, there’s a lifetime (i.e. once only) exemption of CY£50,000 (€85,764). For any other kind of property (e.g. a holiday home), only CY£10,000 (€17,000) is exempt, and this exemption is per registered owner, not per property. (You cannot claim both of these exemptions!)
Other exemptions from capital gains tax include the following:
- Transfers due to death;
- Gifts to close relatives such as spouses or children;
- Gift to the government or a charity;
- Exchanges or sale in accordance with Agricultural Land Laws;
- Exchanges of properties where the value is equal.
If improvements or additions are made to the property, this will be deducted from the assumed profit, thereby reducing liability.
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