Taxation on Real Estate in Cyprus: What Expats and Property Owners Need to Know
H1: Real Estate Taxation in Cyprus – What Every Expat Owner Should Know
H2: Do You Pay Taxes on Property in Cyprus?
Yes. While Cyprus does not impose inheritance or annual property tax anymore, there are several taxes and fees related to buying, selling, owning, or transferring real estate. These vary depending on the nature of the transaction and whether you are a resident or foreign owner.
H2: Main Types of Real Estate Taxes in Cyprus
H3: 1.
Capital Gains Tax (CGT)
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Applies when selling a property.
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Charged at 20% on the profit (sale price minus purchase price and eligible deductions).
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Deductions include inflation adjustment, renovation costs, and legal fees.
H3: 2.
Transfer Fees
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Paid by the buyer when transferring the title deed.
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Rates:
• 3% on the first €85,000
• 5% from €85,001 to €170,000
• 8% above €170,000
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No transfer fees if VAT is paid on the purchase.
H3: 3.
Stamp Duty
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Payable on property sale agreements.
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Up to €5,000: 0.15%
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From €5,001 to €170,000: 0.2%
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Maximum payable stamp duty: €20,000 per agreement.
H3: 4.
Municipal and Local Taxes
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Paid yearly to the local municipality.
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Cover services such as garbage collection, street lighting, sewerage.
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Usually range from €85 to €300 per year depending on property size and location.
H2: Tax Responsibilities for Foreign and Expat Owners
If you reside outside Cyprus but own property there, you must:
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File tax returns for any rental income or sale profits
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Pay Capital Gains Tax (if applicable)
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Keep records of expenses and receipts for deductions
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Appoint a representative in Cyprus if necessary
We offer tax compliance support and represent clients before the Tax Department.
H2: How to Reduce Your Tax Liability Legally
Some legal methods to reduce your taxes include:
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Applying deductions for improvements and repairs
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Declaring gifts or low-value family transfers
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Avoiding double taxation (with U.S.–Cyprus treaty)
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Transferring ownership via inheritance or gift (exempt from CGT under conditions)
Our legal team can assess your situation and help you optimize your tax burden legally.
H2: Legal Representation for Expats and Non-Residents
E. CHATZIDIMITRIOU LLC provides legal services tailored to non-resident property owners, including:
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Capital Gains Tax calculations
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Title transfer and fee management
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Rental income declarations
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Remote legal representation
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Coordination with accountants and tax authorities
H2: Need Help With Property Taxes in Cyprus?
Whether you’re selling, inheriting, or simply owning property in Cyprus, let us manage your tax obligations legally and efficiently.
Website: www.hatzidimitriouvirtuallaw.com
Email: info@hatzidimitriouvirtuallaw.com
U.S. Contact: +13474034789
Stay compliant – even from abroad.