Buying a Permanent Home in Cyprus for Relocation & Living
Who can buy property in Cyprus?
If you are planning to permanently relocate, or use your Cyprus property to live permanently, there are many tax advantages to owning only one property and making yourself a permanent tax resident. EU citizens have the right to live and work anywhere within Europe without restrictions as long as they have a valid passport in their possession. This freedom extends to investments, including home ownership, but what about non-EU citizens?
Non-EU Citizens can:
- Purchase one plot of land, house or apartment.
- Not buy land that exceeds 4014 square meters.
- Have no conflict of interest by owning any shares in any company dealing with property.
- As long as they have a clean criminal record.
What are the fees involved with buying property in Cyprus?
The fees involved are a minimal stamp duty fee, the amount of which is calculated based on the property value or purchase price.
If the land or property has title deeds, then you have to pay the transfer fees in order to have them transferred into your name. The owed charges are calculated based on the purchase price, and the number of owners the property will be registered in. You should also allow for the Agent or Service Provider fees, which are usually comprised of about 1% of the total purchase price.
How are property transfer fees calculated?
The purchase price is usually the market value and the fees are based on the market value of the property. The first 85,430 Euro is charged at 3% if the property is in one name. If the property is in two names then each person gets this allowance, so for two people its 3% up to 170,000 euros. The next 85,430 is charged at 5% and any amount over 170,860 Euros will be charged at 8%.
What are the tax advantages to living permanently in Cyprus?
You have to be residing in Cyprus for at least 183 days per calendar year in order to pay Cyprus Income Tax on any income, even from other countries. Cyprus has Double Taxation Treaties in place with 43 countries. To avoid being liable to pay additional tax from your country of origin, you should fill out a DT -Individual Form if you are moving from the UK for instance, which can be downloaded here.
After completing the form you will need a Revenue Stamp from the main Post Office in Cyprus then, take the form to the Cyprus Inland Revenue Office to be stamped also. That way you can take advantage of your new country of residences’ favourable tax laws!
For assistance with any relocation matters, we can help you. Click here to read more about relocating to Cyprus.