Compared to many countries, the logistics of property purchase in Cyprus by foreigners are relatively simple.

Non-Cypriots are permitted to buy, for their personal use, either:

• an apartment or a house or,
• a house on a building site not exceeding 3 donums (4,012.5 sq. metres) or
• a piece of land not exceeding 3 donums for the purpose of erecting a house within a reasonable time.

Permission to buy property must be sought from the Council of Ministers by written application, which must be submitted by the non-Cypriot purchaser after the agreement is signed. However, this permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of the property without restriction.
The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable time after signing the contract of sale.

LEGAL APPLICATION FEES

Usually the vendor, at the purchaser's request, will process the application to the Council of Ministers for the permit to own property in Cyprus, for the nominal fee of (aprox CY Ł150), payable when such permission is granted. However, purchasers are free to appoint a solicitor of their own choice in Cyprus to handle their affairs.

Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointed third party with a Power of Attorney.
In the case of a non-Cypriot, evidence of payment for the property with foreign exchange must be provided as a prerequisite for registration.
The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within sixty days from the contract date. This protects the buyer's rights to the property and provides additional safeguards.

When issued, the title deed will be register in the name of the buyer, and will be recorded in the Government archives. The Government archives are confidential and will not be published or made accessible under any circumstances.
At any time after the purchase, the buyer may sell or dispose of the property at will, provided that he/she has a valid contract.

The transfer of title can be affected once the Council of Ministers' permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds.
Upon transfer of the property and registration in the purchaser's name, the District Land Registry Office will charge Transfer Fees, which are based on the market value of the property at the time of purchase, and are calculated as follows:

Value up to - CYŁ 50.000 3%
 CYŁ50.001 - CYŁ100.000 5%
 CYŁ100.001 - and over 8%

Example:

Purchase price CYP Ł140,000

1st 50,000 @ 3% = CYP Ł1,500
2nd 50,000 @ 5% = CYP Ł2,500
3rd 40,000 @ 8% = CYP Ł3,200

Total CYP Ł7,200

However if the property is purchased jointly by a couple, the property purchase prices is split equally into two parts and then taxed which is beneficial to the purchasers as the following example shows:

Purchase price CYP Ł140,000/2 = CYP Ł70,000

1st 50,000 @ 3% = CYP Ł1,500 x 2 CYP Ł3,000
2nd 20,000 @ 5% = CYP Ł1,000 x 2 CYP Ł2,000

Total CYP Ł5,000

Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of CYŁ1.50 per CYŁ1,000 up to CYŁ100,000 and thereafter at the rate of CYŁ2 per CYŁ1,000,000. The purchase contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.

Example:

Purchase price CYP Ł140,000

1st 100,000 @ 0,15% = CYP Ł150
2nd  40,000 @ 0,20% = CYP Ł80

Total CYP Ł230

The annual immovable property ownership tax imposed by the government is approximately CYŁ60-120 per year, depending on the value of the property. The Municipal authorities also levy an annual property tax at the rate of about CYŁ20-30 per year. Other authorities may also impose a sewage tax of CYŁ20-40, depending on the value of the property.

CAPITAL GAINS TAX

Should the purchaser decide to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the time of the re sale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first CYŁ10,000 are tax-exempt.

Inheritance tax is not imposed.

Contrary to the risks inherent in the purchase of property in some countries, Cyprus has never been involved in the nationalization of any sector of the economy, nor in the expropriation of property owned by foreigners.
Indeed the Republic has often guaranteed foreign investments jointly and severally with local participants, consistent with its efforts to create a favourable climate for such investments.

Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.

These are usually payable monthly or quarterly in advance. They vary from development to development and depend on the area and type of the property. They cover an owner's share of the cost of cleaning and maintaining common areas and gardens, swimming pool expenses, electricity in common areas, management fees, rubbish collection and repairs. The estimated total is in the region of CYŁ150 - CYŁ300 per year.

Charges for utilities are payable to the respective authorities at regular intervals throughout the year. They are based strictly on consumption of each unit. While the cost will vary for every unit, approximately CYŁ180 per unit per year can be considered as a rough guide.
The local municipal or other authorities are responsible for the regular collection of rubbish. Depending on the area of the property the cost is from CYŁ40-50 per year.

Comprehensive insurance against fire and associated hazards is provided by the vendor until the title deeds are transferred to the owners, at a cost of CY Ł25-100 per year, depending on the value of the insured property. Insurance for the contents of the property is the owner's responsibility, and an approximate cost indication would be CYŁ2.00 per CYŁ1,000.00 sum insured per year, with a minimum premium of CYŁ10.00.

FINANCING FACILITIES

Vendor usually offer various long-term payment schemes to assist its purchasers. Though each project differs, a deposit of 30% is required on signing a purchase agreement for a completed building and the balance can be paid in a number of consecutive monthly instalments with interest on the reducing balance.
There are also schemes for purchasing property during the construction period or before. Additional information will be provided on request.
In addition the vendor may assist you to obtain from a Commercial Bank in Cyprus a housing loan at favourable conditions.

Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income.
Additionally, Cyprus has Double Taxation treaties with many European and other countries, safeguarding its residents from paying tax in both countries.