Immovable property tax
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as on 1st January 1980.
Value of property in € Annual Tax
854,301- over 0.40%
Municipal Services: The municipal or village authorities also levy an annual property tax which is calculated according to the area and the size of the property and covers sewerage, street lights, refuse collection. The charges range in total from approximately €85,00 to €171,00 per annum.
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 sale. The equivalent of the full purchase price and any increase in the 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 €17,086 are tax exempt for every individual. If a purchase is done through a Cyprus registered company, capital gains are reduced significantly under certain conditions.
Inheritance Tax: Inheritance tax has been abolished in Cyprus, however, it is advisable to make a will in Cyprus to deal with your assets which super cede the instructions expressed for your assets in your home based will.
Tax privileges: 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 car and retired couples enjoy the additional concession of two duty-free cars.
Using a foreign exchange specialist could save you thousands of pounds on your currency transfers: Buying a property abroad is often the realization of a personal dream and probably represents one of the greatest expenses of your life. As a part of the process of buying a property abroad, you will inevitably need to transfer a sum of money into another currency in order to pay for your property. Managing your currency risk can save you thousands on your currency transfers which you could use to pay other purchase costs, such as lawyers fees or to furnish your new property. With this mind, a foreign exchange specialist can help save you money on your international transfers.
Exchange rates constantly and fluctuations of as much as 10% in a short space of time are not uncommon. Using a currency specialist to help guide you through the fluctuations can make a huge difference to the exchange rate that you receive.
Currency specialists will normally offer you a better rate of exchange than your bank and provide a more personalized service. Law transfer fees, extended opening hours and faster transfer times than the bank ensures your money will arrive when and where you need it to. You will also get access to a personal dealer who can offer guidance on market movements, allowing you to decide on the best time to exchange your money.