Quick response to — how much is property tax in Cyprus?

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Property tax in Cyprus is based on the market value of the property and ranges from 0.6% to 1.9%.

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Property tax in Cyprus is a significant financial obligation for property owners as it is calculated based on the market value of the property. The rate ranges from 0.6% to 1.9% and is paid to the local municipality or the Department of Lands and Surveys.

According to a report by PwC Cyprus, “the calculation of immovable property tax is based on the value of the property as at 1 January 1980 and varies depending on whether the property is owner-occupied or not, as well as its size and location.”

It is important to note that property owners in Cyprus may also need to pay an annual municipal tax which varies depending on the municipality. This tax is based on the property’s estimated rental value.

Here is a table illustrating the property tax rates in Cyprus:

Category	Tax Rate
Owner-occupied property	0.6%
Property rented for 1-10 months	3.4%
Property rented for more than 10 months	6.8%
Property owned by a company	0.1%-0.6%

In the words of famous American investor and businessman Warren Buffett, “Property tax is a different kind of tax. It’s a wealth tax, not an income tax. Income taxes you pay regardless of your wealth.” This statement highlights the importance of considering property tax when making financial decisions related to real estate.

Interesting facts about property tax in Cyprus include the fact that there are no gift or inheritance taxes in the country, which can make passing on property to heirs more financially beneficial. Additionally, Cyprus has been ranked as the 5th most attractive European country for real estate investment by PwC in 2021, highlighting the potential for investment opportunities in the country.

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As of 1 January 2017 there is no immovable property tax in Cyprus. Depending on the size of your property, local authorities charge between €85 – €256 per annum for regular refuse collection, street lighting, sewerage, and similar community services.

It ranges from 0.6% to 1.9% depending on the property’s value and is payable before 30 September each year. Public buildings and agricultural land in use are exempt from real estate tax.

The acquisition of any building or residential property in Cyprus is subject to a standard VAT rate of 19%. However, a reduced rate of 5% was introduced to beneficiaries who meet the following conditions: Use (or intend to use) the residential property as his/her main and permanent place of residence.

Since Cyprus’ EU accession in 2004, a standard VAT rate of 19% is required to be paid when buying a new property. However, following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.

Associated video

Jenna Turgut, owner of Property Talks North Cyprus, and Harriet discuss the recent changes in property tax regulations in North Cyprus, which still offer affordable prices compared to other European destinations. They warn investors about inexperienced marketing ventures and shady commissions by real estate agents, but stress the importance of selecting properties with the right location and price to maximize returns on long-term living and rental management. The hosts assure viewers that North Cyprus’s low crime rate and beautiful weather make it an excellent destination for overseas buyers, especially for investors seeking to benefit from the increasing number of people moving there, while taking advantage of Turkey’s status as a foreign investor. The hosts also encourage their audience to leave their questions and requests for future episodes in the comments section.

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What is the property tax rate in Cyprus?

Answer: 0.1% to 0.2%
Local municipalities apply tax to the immovable property based on the market value of the property and rates range from 0.1% to 0.2%. These are paid to the local municipality where the property is located and are payable to the direct authorities annually from the October to December tax period.

How much is immovable property tax in Cyprus?

The response is: Cyprus: Cyprus Tax Facts 2021 – Immovable Property Tax

VALUE OF PROPERTY €	RATE 0	ACCUMULATED TAX €
300.001 – 500.000	13	5.360
500.001 – 800.000	15	9.860
800.000 – 3.000.000	17	47.260
Over 3.000.000	19

How much tax do foreigners pay in Cyprus?

Cyprus Tax for Non-Residents & Tax Exemptions

Taxable Income Band (EUR)	National Income Tax Rates
0 to 19,500	0%
19,501 to 28,000	20%
28,001 to 36,300	25%
36,301 to 60,000	30%

Is it worth buying property in Cyprus?

Response: If you purchase a Cypriot property, you’ll be able to enjoy reduced income tax rates, as well as exemptions on capital gains and inheritance taxes. These benefits make Cyprus an appealing destination for investment opportunities through a property purchases.

What taxes are levied for buying immovable property in Cyprus?

The taxes levied for purchasing immovable proprety in Cyprus are very low compared to other comparable jurisdictions and are as follows: Stamp Duty. The Purchaser is liable for the payment of Stamp Duty on the purchase price of the property at the following rates: VAT Payable on Property.

What is capital gains tax in Cyprus?

Capital Gains Tax. On any financial gains from disposal/sale of Immovable Property situated in Cyprus, Capital Gains Tax will be imposed at the rate of 20% with the first €17,086 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property.

How do I pay for my property in Cyprus?

There are essentially two ways for you to pay for your property in Cyprus. Firstly, you can use your own money. This could be a salary, savings or even selling off unused heirlooms. Equally, you might get rental income from an existing property, or be able to fund through the sale of one. Secondly, your options for borrowing money are quite varied.

Do non-residents pay income tax in Cyprus?

As an answer to this: Non-residents pay income tax on certain types of income received in Cyprus. Income tax ranges from 0% to 35% and also applies to property rental income. A tax resident is any individual spending more than 183 days per year in the country (from 1 st January 2018 the “183 day rule” will be replaced by the “60 day rule”).

How is property tax calculated in Cyprus?

Answer: Cyprus property tax is calculated on the market value of the property as at 1st January 1980 and must be paid annually to the Inland Revenue Department. Individual owners are exempt from this tax if the 1980 value of their property is less than €12,500.

Are intellectual property rights taxable in Cyprus?

There is a 2.5% tax on royalties received in connection with intellectual property rights held in Cyprus. Personal income in Cyprus is taxed on a tiered basis, with quite a substantial tax-free allowance of €19,500. The maximum income tax rate on personal income in Cyprus is presently set at 35% for income in excess of €60,000.

Do I have to pay tax in North Cyprus?

Response will be: As a tax resident of North Cyprus, you must pay income tax on all the income that derives from your North Cyprus activities and on all the money you bring into North Cyprus from abroad. Any earnings made in the TRNC, such as income from property letting or bank interest, are taxable.

What is the VAT rate in Cyprus?

There is a beneficial rate of 5% VAT for buyers who do not own any property in Cyprus and are purchasing their primary residence (not exceeding 200 sq m). Real estate tax is calculated on the estimated value as of 1 January 1980. It ranges from 0.6% to 1.9% depending on the property’s value and is payable before 30 September each year.