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Property ownership

Ease of ownership

Since 2004, there have been no restrictions on residents of EU countries buying property in the Republic of Cyprus. Issues regarding land rights in the north of Cyprus, on the other hand, have deterred overseas buyers who fear a situation where land is purchased and is afterwards found to have Greek Cypriot title deeds. However, 2006 saw a significant ruling in favour of the new British owner of land that had been Greek Cypriot owned. Also, a ruling made by the Northern Cyprus Property Commission stated that Turkey should pay former Greek Cypriot owners of real estate in the north for loss of access, and the European Court of Human Rights upheld this ruling. This news should allay the fears of buyers considering this area of the island.

Republic of Cyprus

The costs of owning a property in Cyprus differ depending on the type and size of the property, its location, and other individual circumstances. The following is a general guide to the costs in the Republic of Cyprus:

• Income tax – rental income is taxed at progressive rates ranging from 20 – 30%. Income below CY£10,000 is exempt.
• Immovable property tax – this marginal tax must be paid every year according to progressive rates, between 0 – 4%.
• Local authority tax – rate depends on the size of the property but will be between CY£50 – 150.
• Capital gains tax - charged at 20% of the chargeable gain. The first CY£10,000 is exempt. This exemption limit goes up to CY£50,000 if the vendor has lived in the property continuously for the previous five years. There are further allowances in relation to transfer fees, inflation and improvements made to the property, but the total exemption cannot exceed CY£50,000.

North Cyprus

The following is a guide to the costs of owning a property in the north of Cyprus:

• Income tax – chargeable at a rate of 15%.
• Local authority tax – rate depends on the size of the property but will be between 1 – 3%.
• Capital gains tax – if it is the first time the seller has sold a property then they are exempt. If it is not the first time, either in this country or abroad, then a rate of 3.5% applies for the first three sales during a year. Thereafter a rate of 6.35% applies.

The south of Cyprus has a double taxation treaty with 26 countries. However, the north of Cyprus does not have a double taxation treaty with Great Britain or Ireland, so if the owner is from either country, they would have to pay income tax in their own country as well as in Cyprus.

Related items

Documents and Reports

	Cyprus property investment report (373Kb)
	Cyprus country guide (766Kb)
	Cyprus property buying guide (979Kb)
Documents and Reports

Other related pages

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