Taxes & Fees

Why Cyprus?

  • Strategic location at the crossroads of three continents, providing an ideal base for expansion into new markets.
  • Member of the European Union serving as Europe’s Middle Eastern outpost and a gateway for the movement of goods inside and outside the European continent.
  • Low company taxes including 12,5% corporation tax, and low personal income tax.
  • Liberal Foreign Direct Investment (FDI) policy allowing 100% participation in almost all sectors of the economy.
  • Skilled workforce highly qualified and multilingual with one of the highest percentage of university degree holders in the world.
  • Double tax treaties with over 40 countries.
  • Bilateral investment agreements with 19 countries.
  • Excellent infrastructure providing easy access by air and sea, and serving as an important telecommunications hub in the region.
  • Low setup and operating costs including rental costs, salaries and social insurance contribution.
  • Top class professional services, efficient legal, accounting and banking services.
  • A great place to live and work with pleasant climate, agreeable topography, high standard of living, and one of the lowest crime rates within the European Union.

What are the tax advantages in Cyprus?
  • Corporation tax is only 12,5%
  • Inheritance Tax – there are no succession inheritance taxes in Cyprus.

Capital Gain Taxes in Cyprus
If the purchaser decides to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange, may be transferred abroad at the time of the resale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however, the first €17,086 are tax exempt. Provided two buyers (maximum 2) are on the original Contract of Sale, then the tax allowance can be up to €34,172.

What are the Standard Transfer Fees?
The transfer of title can be done once the Council of Ministers’ permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds. Upon transfer of the property and registration in the purchaser’s name, the District Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of purchase, and are calculated as follows:

Value of Property (€) Transfer Fee
1,71 – 85,000 3%
85,001 – 171,000 5%
171,000 and over 8%

What are Stamp Duty fees in Cyprus?
For the first €5,000 no fees are paid. On the signing of a contract the purchaser is liable to pay stamp duties at the rate of 0.15% up to €170,860 and thereafter at the rate of 0.20% per €1,709. The Purchase Contract must be stamped within 30 days of its dated signature; otherwise a fine will be imposed.

Is Value Added Tax applicable on property in Cyprus?
VAT is applicable in Cyprus at the rate of 19%.

Are there State and Local Authorities taxes applicable in Cyprus?
State immovable property tax, local authorities’ immovable tax, sewerage tax and refuge collection tax are applicable in Cyprus.