Simila Cyprus

GOOD NEWS FOR PROPERTY BUYERS 

Property Transfer Fees reduction of 50% is now permanent 

29/07/2016

The time to buy your dream home in Cyprus is now. Benefit from the permanent reduction of the transfer fees by 50%.

In an announcement published earlier today the Cyprus Finance Ministry announced that it has lifted the temporary arrangement to reduce Property Transfer Fees by 50 per cent, which was valid until 31st December 2016. The 50 per cent reduction is now PERMANENT; the law implementing the change, ‘Land and Surveys Department (Fees and Rights) (Amendment) (No. 2) Law’, was passed on 14th JULY 2016 at a plenary session of the Cyprus parliament.

In its announcement the Finance Ministry said “The above arrangement aims to boost additional growth in the construction industry and attract new investments from both the domestic, and the foreign markets.”

The following example clearly illustrates this:
For property purchased for €200,000 in one name, the fees payable are €9,200
For property in the name of one person
 

Up to €85,000	@3%	= €2,550
From €85,001 to €170,00	@5%	= €4,250
The remaining €30,000	@8%	= €2,400
Total fees payable		= €9,200
New fees payable	50% Reduction	= €4,600

For property purchased for €200,000 in the names of a couple-husband and wife, the fees payable are €6,600
For property in the names of two persons
 

Up to €85,000	@3%	= €2,550 (Husband’s share)
Second €85,000	@3%	= €2,550 (Wife’s share)
The remainder of €15,000	@5%	= €750 (Husband’s share)
The remainder of second €15,000	@5%	= €750 (Husband’s share)
Total fees payable		= €6,600
New fees payable	50% Reduction	= €3,300