76 UGLOBAL IMMIGRATION MAGAZINE
meters of buildable area , and a total cost of € 475.000 .
As such , properties that cost over € 475.000 and have a total buildable area of over 190 sqm will be subject to the standard VAT rate of 19 % on the entire purchase or construction price . If , on the other hand , the buildable area is less than 190 sqm but over 130 sqm , the reduced VAT rate of 5 % will apply for the first 130 m2 , and the standard VAT rate of 19 % will apply for the rest of the buildable area , provided that the property ’ s cost does not exceed € 475.000 .
The reduced VAT rate is granted provided the applicant will use the residential property as its primary residence for at least ten years . If , for any reason , the applicant ceases to use the property as such within this period , they must notify the Commissioner of Taxation within 30 days and settle the difference between the standard VAT rate and the reduced VAT rate attributable to the remaining period of ten years . properties due to inheritance as well as parental gifts to children ..
In cases where transfer fees apply , the below rates are applicable , with a reduction of 50 %:
When more than one buyer purchases the property , the price is divided by the number of buyers , reducing the total amount of the transfer fees to be paid .
Overall , taxes associated with purchasing immovable properties in Cyprus are straightforward . However , interested buyers should seek specialist advice to confirm compliance with the Cyprus taxation policy and the applicable regulations .
Also , new applications are subject to the criteria introduced by the amending law unless the property has secured a planning permit or an application for a planning permit was submitted before Oct . 31 , 2023 , and further provided that the application is submitted before Jun . 16 , 2026 ( within three years from the enforcement date of the amending law ).
The applicant should be a physical person over 18 years of age ; legal entities and minors are exempt . Also , they must declare they have not secured another residence in Cyprus being used as the primary and permanent living place with the reduced VAT rate .
Market Value
Rate
€ 0 to € 85,000 5 %
€ 85,001 to € 170,000 5 %
Over € 170,001 8 %
Source : Department of Lands and Surveys ( Fees and Charges ) Law ( Cap 219 )
Transfer fees
The Land Registry Office applies these fees upon transferring the property ’ s title deed from the seller to the buyer . Upon settling this amount , the property ’ s new title deed is issued whereby the buyer ' s name is stated as the property ’ s registered owner .
ELENI DRAKOU
Eleni Drakou is an immigration and real estate lawyer and partner of Michael Kyprianou & Co . LLC , a leading law firm in Cyprus . She is a member of the Cyprus Bar Association , the Investment Migration Council ( IMC ), and a member of the board of directors of STEP Cyprus ( TEP ). She regularly represents investors in their business and real estate transactions in Cyprus . She advises clients on tax , corporate and estate planning matters . Drakou often assists and represents clients in their immigration applications . She has been recently ranked by Citywealth in their list of NextGen Top 40 under 40 advisors worldwide .
Properties subject to VAT are exempted from transfer fees . Moreover , exempted from transfer fees is the transfer of