APPROXIMATE ANNUAL
COSTS OF VILLA OWNERSHIP
COMMUNITY
FEES 800€
Controlled
by the owners association committee. This pays for the maintenance
of the estate including public lighting, common areas, pools etc
LOCAL
AUTHORITY TAX for
refuse collection etc
200€
IMMOVABLE
PROPERTY TAX 100€
An
annual tax based on the value of the property
INSURANCE
cover for house and
contents 400€
ELECTRICITY AND WATER
1,000€
Annual
standing charge plus costs based on consumption
TOTAL 2,500€
VALUE ADDED TAX
Cyprus levies VAT at
15% on new property purchases. At the present time there is no VAT on
resale properties, but this may change in July 2008. What will happen in 2008 is not finalised yet (as at
today Dec 2007). At the moment there is VAT applicable on all new
properties which were granted planning permission after May 2004. All
properties with a permit before that date are not subject to VAT.
One needs to know that subject to conditions, one can obtain up to
10% back from the government in the form of a subsidy. There are
various conditions relating to this; most importantly among other
things must be the buyers' first residence and proof is required.
STAMP DUTY
For a contract to be
legally binding in Cyprus it must be stamped. In the case of a sales
contract the purchaser is liable for the payment at the rate of 1.5%
per thousand of the value up to 170,000€ thereafter the rate
becomes 2% per thousand. The duties are payable after signing the
contract of sale and will be collected by the solicitor.
REAL
ESTATE TRANSFER TAX (RETT)
Real estate Transfer
Tax is due upon transfer of freehold and is payable when the relevant
authority issues the title deed. Real estate transfer is a personal
tax and the amount payable is reduced if two people register as
co-owners - see example of joint ownership below. The purchaser is
responsible for the tax payment, and rates are on a graduated scale.
i.e 3% on the first 85,500€ and 5% of the second. Tax on
properties over 170.000€ is only 8% on the amount over 170.000€.
Transfer of ownership takes place by a simple process of registration
at the Land registry office, followed by the issuing of an individual
title deed 2-5 years after completion and delivery.
REAL
ESTATE TRANSFER TAX (RETT)
PURCHASE PRICE TAX
First
85.500€ 3%
85.500€-170.000€
5%
Over
170.000€ 8%
EXAMPLE REAL ESTATE TRANSFER TAX
(RETT) BASED ON 170,000€
PURCHASE PRICE SINGLE
OWNERSHIP JOINT OWNERSHIP
First
85.500€ 3%=2.500€ 3%=2.500€
Next
85.500€ 5%=4.300€ 3%=2.500€
TOTAL 6.800€
5.000€
