Transfer fees are levied by the Department of Land and Surveys for transfers of immovable property situated in Cyprus.
The following rates apply:
| PROPERTY VALUE € |
RATE % |
ACCUMULATED FEE € |
| Up to 85.000 | 3 | 2.550 |
| 85.001 – 170.000 | 5 | 6.800 |
| Over 170.000 | 8 | - |
The land transfer fees are payable by the purchaser of the property.
No transfer fees are payable if VAT is applicable upon purchasing the immovable property.
The above transfer fees are reduced by 50% in case the purchase of the property is not subject to VAT.
In the case of property transferred to a family company, transfer fees are refundable after five years if the property remains with the company and the shareholders remain the same.
In the case of company reorganisations, transfers of immovable property are not subject to transfer fees or mortgage registration fees.
In addition, there are no transfer fees payable under a qualifying Loan Restructuring process or in the context of bankruptcy, liquidation, disposal of mortgaged immovable property by the lender, where the sales proceeds do not exceed the amount of euro 350.000 per owner.
In case of property transferred from a family company to one of the two spouses or their children or to a relative up to third degree, the transfer fees are calculated on the value of the property on the title deed, as follows:
| % | |
| transfer to a spouse | 8 |
| transfer to a child | 4 |
| transfer to a relative up to third degree | 8 |
The following rates are applicable in the case of free transfers:
| % | |
| parents to children | NIL |
| between spouses | 0.1% |
| between relatives up to third degree | 0.1% |
| to trustees | €50 |
The value in the above case of free transfers is the value as at 1/1/2013.
Mortgage registration fees are 1 % of the current market value.
Originally published 03 February 2021
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.