If a person wants to purchase a property in Cyprus, there are taxes involved. The following taxes are required.
Duty Stamp – 0.5%
Owners must pay a 0.5% of the price of the contract or property bought. This must be paid at the Official Tax office within twenty one (21) days from the actual contract signing. There is a 1.5 percent increase if paid after the deadline.
VAT (KDV) – 5%
Properties bought from a Construction Supply or other selling companies have 5% VAT. It must be paid at the Cyprus Tax Office at the actual date of the transfer of the Title of Dees. In the case of reselling properties, there is no need to pay VAT.
Transfer Fee of the Title – 3 to 6%
Title Transfer has a fee involved too. From three (3) to six (6) percent, buyers must pay it at the District Land Register Office in North Cyprus. Additionally, the prevailing transfer fee rate is six 6% from the price of the contract. Every owner has the choice to buy a property once at 3% and not the 6%.
Capital Gains Tax – 3.25% or 6.25%
This tax is accounted for the seller, and is a requirement once property is purchased. The current amount is normally 6.25%. In case the seller is a private individual owner, the Capital Gains Tax is less, which is 3.25%.
Every person has only one-time option to sell a residential property and a plot up to 1 donum without tax payment. So if the buyer is planning to sell another property and the first one had taxes, he or she is not required to pay taxes anymore, except the Documentary Stamp tax that must be paid within 21 days after the contract signing. Other taxes must be paid at the Title Deed transfer within 2 years.