Transfer Fees in Cyprus
Transfer Fees in Cyprus are charges levied by the Land Registry for legally transferring property ownership from the seller to the buyer. These fees are typically calculated as a percentage of the property's market value. The fees vary depending on property value and whether the buyer has purchased property in Cyprus before.
The relevant law in Cyprus is the Department of Lands and Surveys (Fees and Charges), chapter 219 of the laws.
The rates are as follows
Transfer Fees for individual purchases: When purchasing an item, the total cost is divided into parts, and a percentage is calculated for each part according to the following table:
- Up to 85,000: 1.5%
- From 85,001 to 170,000: 2.5%
- Above 170,001: 4%
The percentages are then added up to determine the total transfer fees.
Transfer Fees for joint purchases: Similar to individual purchases, the cost of the item is divided into parts. The percentage for each component is calculated according to the following table:
- Up to 170,000: 1.5%
- From 170,001 to 340,000: 2.5%
- Above 340,001: 4%
The total transfer fees are calculated by adding up the resulting percentages.
Exemptions and allowances
It is possible to reduce transfer fees by taking advantage of certain exemptions and allowances.
50% exemption
There is an exemption of 50% to the amount of the transfer fees provided for by legislation. The DLS calculator does not take the exemption into account.
VAT transfer fee exemption
There is no transfer fee if the buyer has paid VAT.
Allowances
- There are no transfer fees when the transfer is from parents to children.
- Between spouses, the fee is 0,01%.
- Between relatives of up to the third degree, it is 0.01%.
Importance
Transfer fees are paid to transfer and record property ownership. When acquiring Cyprus property, a buyer should calculate the transfer fees in the overall cost. First-time buyers are given some financial relief because of the reduced transfer fees. Also, the legislation makes a 50% exception in all cases.
