Help & Guides

Find answers to common questions about buying, selling, investing and owning a property in Cyprus. Browse our comprehensive how-to and local guides.

Guides

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26 August 2022
Can foreigners buy property in Cyprus?
22 August 2022
Slow Track Cyprus Permanent Residency
27 June 2022
Taxes when buying a property in Cyprus

Frequently Asked Questions

What is a bank-owned property?

Bank-owned property is any property that is under foreclosure or being sold by the lender. Normally, a distressed property is a result of a homeowner who was unable to keep up with the mortgage payments and/or tax bill on the property. It is common for a distressed property to be sold below market value.

Will I have to pay VAT if I buy resale properties?

No. There is no vat on used/old properties. If a property is currently rented or people lived in it in the past, it is considered used and there is no vat payable.

How much is the vat on newly built properties?

The standard VAT rate of 19% is required to be paid when you buying a new property. But according to the law, the buyer has an opportunity to save, and pay only 5% VAT on the first new housing.

Is there vat on plots/land in Cyprus?

Since January 2018, a VAT tax is imposed on the transactions of undeveloped building plots and land which are carried out for business or economic purposes and activities at the rate of 19%.

In cases where the sale is an occasional transaction, the land is not subject to VAT.

What are the main benefits of a tax resident in Cyprus?

The tax regime in Cyprus is one of the best and lowest in the European Union, which amongst other has no inheritance and wealth tax, double tax treaties with over 60 countries and only 12.5% corporate tax.

How to become a Cyprus tax resident?

Cyprus tax residency for individuals is solely determined by the number of days each person spends in Cyprus. Any person who is in Cyprus for 183 days or more in a calendar year is considered to be a Cyprus tax resident.

Who is a considered Tax resident of Cyprus (company)?

A company; the legal entity whose management and control is exercised in Cyprus.

Who is considered a Non-Domicile Cyprus Tax Resident and what are his benefits?

According to the amended relevant Cyprus Law, on July 2015 was introduced the concept of the ‘Non-domiciled’ tax residents and all benefits that comes with it. A non-domiciled Cyprus tax resident is considered the person who has a domicile origin other than Cyprus and has not been a Cyprus tax resident for at least 17 out of 20 consecutive years. According to the latest amendment; a non-domicile Cyprus tax resident will not be subject to taxes on dividends (currently on 17%), to rental income tax (currently 3%) but the biggest advantage will be subject to zero tax on bank deposit interest (30%) generated by all his worldwide deposits including Cyprus.

What is the Cyprus Permanent Residency by Investment?

Cyprus Permanent Residency is an investment program in Cyprus real estate industry that is giving to applicants and their families a fast-track guarantee approval of permanent residency status within 2 months, after a minimum property investment of €300,000.

Can EU citizens buy immovable property in Cyprus without restrictions?

Yes. EU citizens can buy property in Cyprus without any restrictions.

Can non-EU citizens buy immovable property in Cyprus?

Yes. However, they must first obtain the permission of the Council of Ministers. The process is simple, and the government encourages non-EU citizens to buy property in Cyprus through the Immigration programs of citizenship by investment and permanent residence by investment.

Who pays the commission on sales or rentals?

In Cyprus, by law, the real estate agent commission is paid by the owner-seller.

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