Property Taxes, Fees & Rates Cyprus has one of Europe's cheapest rates in property taxes and fees: Property Tax The annual immovable property tax is calculated on the market value of the property as at 1st January 1980. Market value of property (EURO) Annual Property tax (%)

• up to 170,860 exempt
• 170,861 to 427,150 2.5%
• 427,151 to 854,300 3.5%
• over 854,301 4.0%

Stamp Duty
The purchaser is liable for the payment of stamp duty at the rate of 2.56 EU Pounds per thousand up to the value of 171.000 EU Euross and thereafter at the rate of 3.42 EU Euros per thousand. For example if the purchase price is EURO 256.500

First EURO 170 860	0.15% Stamp Duty
next EURO 170 861	0.2% Stamp Duty
Total	-

Capital Gains Tax

On disposal of the property, capital gains tax will be payable at the rate of 20% on the gain with the first EURO17,086 being exempt for each person. This EURO 17,086 can only be utilised once in a persons lifetime and not after consecutive sales.
The gains are the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the sales proceeds and the market value of the property as of 1/1/1980.
On top of this allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house.Gains from the disposal of a dwelling house are exempt up to CYP 50.000 in total if the owner resides in it continuously for at least five years prior to disposal.

Local Authority Rates

A rough guide could be approximately EURO 85 -300 per year depending on the size of your property.This tax is for refuse collection, street lighting, sewerage, etc.The basic utilities, electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.

VAT & Tax Advantages
VAT (Valued Added Tax)

Since 1st May 2004, VAT on properties was introduced. In addition to other amendments, VAT was introduced at rate of 15% on all new properties developed after this date.

Tax Advantages

Cyprus is unique when it comes to the taxation aspects of living on the island, and probably the cheapest in Europe.
The following income tax rates apply to individuals:

Income(EURO) per annum	Tax Rate(%)	Accumulated tax(EURO)
0 - 19.500	EXCEMPT
19.501 - 28.000	20	1.700
28.001 - 36.300	25	3,775
Over 36.301	30

Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an exception for the first EU 3400 is granted.
Additionally, Cyprus has Double Taxation treaties with many European and other countries, safe-guarding its residents from paying tax in both countries. This gives the option to the citizens of those countries to take advantage of the very low rate in Cyprus.

Double Taxation Agreements

Cyprus has double-taxation agreements with Austria, Bulgaria, Canada the People's Republic of China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, (Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine) Slovakia, South Africa, Sweden, Syria, the United Kingdom, the United States, Yugoslavia (Serbia and Montenegro) and other countries.

The main purpose of these treaties is the avoidance of double taxation of income earned in any of the above countries. A credit is usually allowed against the tax levied by the country of the tax payer's residence for taxes levied in the other country.