General Legal Information

Specific Performance
According to the Provisions of the “Sale of Land (Specific Performance) Law”, the purchaser of immovable property can secure the transfer of the acquired property in his/her name by depositing a duly signed and stamped copy of the contract of sale in the Land Registry within a period of two (2) months upon signing the Agreement.

By depositing the aforementioned Contract of Sale in the Land Registry, the purchaser prevents the Vendor from transferring the immovable property in the name(s) of a third party. No obligation, responsibility or legal right can influence the right of "Specific Performance" after depositing the Contract of Sale in the Land Registry.

By depositing the Contract of Sale in the Land Registry the purchaser acquires the right to seek "Specific Performance" of the terms and conditions of the Contract of Sale and thus he can impose the transfer of title of the immovable property in the name of the purchaser, even when the Vendor does not wish to be involved in such processes.

Dues, expenses and taxes of immovable property

A. Transfer Fees
When transferring the title of ownership of the immovable property in the name of purchaser, at the Land Registry, the Purchaser is obliged to pay the following transfer fees, calculated according to the purchase value of the immovable property as it appears in the Contract of Sale.

Example 1:
Transfer of the title deed for a real estate that was bought for €187,946, the purchaser will pay €8,201 in transfer fees in the following way:

Example 2:
If the real estate has been bought and transferred in the names of two people (e.g. spouses), then the purchase value of the real estate is divided in two parts and it involves reduced transfer fees.

At the transfer of title deed of a real estate that was bought for €187,946 and will be transferred in the name of two people, the purchasers will pay €5,980 in dues of transfer in the following way:

B. Stamps
The purchaser is obliged to pay the stamp duty of 1½‰on the purchase price.

Example:
The stamp duty of a Contract of Sale for €187,946 will be €280. The contract should be stamped within a period of (30) days from the date of signing. Although the absence of stamps on the Contract does not necessarily render it invalid, the stamp duty should be paid before depositing the Contract of Sale in the Land Registry for the purpose of Specific Performance.

In order to avoid paying penalty the duly stamped Contract of Sale should be stamped deposited in the Land Registry within 30 days from signing.

C. Mortgage Expenses
The expense of mortgage registration is one percent (1%) of the value of the guarantee, which is dictated by the Bank, plus the stamp duty.

D. Capital Gains Tax
The Capital Gains Tax is imposed with a coefficient of 20% on profits that result from disposal of immovable property in Cyprus. The tax is imposed on the profits following subtraction from the sales price of the purchase price, the transfer fees, the Land Registry fees (if any), bank fees and interest expenses, maintenance costs and all other expenses related to the property.

For profits less than €17,860.01, the capital gains tax is 0% for physical persons, for the first time.

E. Communal Expenses
The communal expenses usually are overwhelmed monthly or quarterly, beforehand, and vary between properties depending on the region and the type of real estate. They cover the expenses of the Registered Owner for the cleaning and maintenance of public spaces and gardens, the expenses of communal swimming-pools, the electricity in public spaces, expenses of management and repairs.

F. Conventions Preventing Double Taxation
Cyprus has contracted conventions of prevention of double taxation with a number of countries. Apart from the Conventions that are in force, further agreements are pending with other countries which at the present stage are under the process of negotiation. These conventions will probably influence positively the property arrangement of immovable property in Cyprus as well as different groups of people who may decide to reside in Cyprus, as pensioners and/or investors.

Some of the countries that Cyprus has entered a convention for preventing double taxation with are the United Kingdom, Ireland, Greece, the U.S.A., Canada, France, Italy, Russia, Belarus, Romania, China, Austria, Belgium, the Southerner Africa and Yugoslavia.

More detailed information is available, to those interested, by our Group’s Legal Consultant:
Tel: +357 24812000
Fax: +357 24635964
marketing@patroclos.com.cy