Immovable Property Tax

The registered owner is liable for this annual tax which is based on the value of his/her property as of 1st January, 1980. Property with a value of up to CY£100,000 is exempt from property tax. The rates are:

Taxable Value Annual Tax

Up to CY£100,000 Nil
CY£100,001 - CY£250,000 0.25%
CY£250,001 - CY£500,000 0.35%
Over CY£500,000 0.40%

Local Authority Tax

Property taxes levied by the local authorities are in the range of CY£30.00 - CY£100.00 per annum depending on the size of the property. The tax covers the cost of refuse disposal, street lighting, etc.

Capital Gains Tax

Capital Gains Tax is levied at the rate of 20% on gains arising from the disposal of immovable property.

As a general rule, the gain is the difference between the sales proceeds adjusted by a cessation allowance, less the original cost of the property, capital improvements and transaction costs of the sale. Generous exemptions are also in place, e.g. net capital gains up to CY£10,000 earned from the disposal of your residence. This allowance is per person in contract of sale. On owning a property for 5 years this allowance increases to CY£50,000 per person, however this allowance is given 'once only' and cannot be repeated on the sale of a second property.

Estate Duty / Inheritance Tax

These were abolished as of January 1 st 2000.

Communal Fees

If the property you choose is on a complex, you will pay Communal expenses to cover owner's share towards the cost of cleaning and maintaining a project's communal areas, gardens, swimming pool, management fees and repairs. These are payable at fixed intervals throughout the year and vary from development to development and from property to property. They are estimated to be in the region of CY£200.00 - 400.00 per annum depending on the size of the property and the facilities provided.

Electricity and Water Supply

Utility bills for these services are payable to the appropriate authorities at fixed intervals throughout the year. They comprise a small standing charge (of £1 or £2 per month) per household and a unit charge for metered consumption. A rough guide for average consumption of both might be approximately CY£ 350.00 per annum.