Costs of buying a house in Cyprus

1. If the client decides to purchase the property, the first step is to sign a reservation agreement. A copy of their passport or ID card must be sent to the developer's address. After signing the agreement, a reservation fee (included in the property price) must be paid. The fee is determined by the property price. The fee is specified in the agreement.
2. The client can appoint a lawyer to represent them, review documents, and oversee formalities.
3. After receiving the reservation fee and a copy of the client's ID, the developer prepares the agreement and sends it to the client.
4. After signing the agreement, the client pays the next installment for the property. All installments will be detailed in the agreement.
5. After paying 30% of the property value, the agreement is forwarded to the land registry office.
6. The final installment is due upon completion of construction.

Additional information:
Europeans are entitled to full ownership of a villa or apartment in Cyprus. Europeans with a temporary or permanent residence permit may register more than one property in their name provided they reside in Cyprus for at least five years.

A foreign national applying for a temporary residence permit must open a bank account in Cyprus and provide a copy of the purchase agreement for the property in Cyprus. This will grant them a residence permit. If the client wishes to obtain a permanent residence permit, the above documents must be accompanied by proof of annual income exceeding €9,570 per person and exceeding €4,615 for each person supported by the property owner who will also live in the purchased property.

Fees:

VAT is 19%. The VAT rate can be reduced to 5% if the property is the investor's first property and they plan to live in it. This reduced rate only applies to smaller houses: up to 130 m² and a maximum value of €350,000. The total building area cannot exceed 190 m², and the total transaction cost cannot exceed €475,000. Some properties may be exempt from VAT if the developer received planning permission before Cyprus joined the European Union in 2004.

Stamp Duty

This is levied on properties purchased on both the primary and secondary markets.

The tax rate depends on the property value:

0.15% for properties valued between €5,000 and €171,000;

0.2% for properties valued above €171,000.

This tax must be paid within 30 days of signing the agreement.

Property Deed - Fees for granting a title deed vary depending on the property's value:
For properties up to PLN 85,430.07, 3% of the property value is payable.
For properties valued between PLN 85,430.08 and PLN 170,860.14, 5% of the property value is payable.
For properties valued at PLN 170,860.15 and above, 8% of the property value is payable.

Property tax is no longer payable following its abolition in 2017 by the House of Representatives.