Property tax in Cyprus is based on the value of the property and is typically paid annually. The tax rate ranges from 0.1% to 0.5% depending on the location and type of property.
Capital Gains Tax (CGT)
- When selling a property in Cyprus, the seller is subject to CGT. The tax rate is 20% on the difference between the sale price and the original purchase price.
- Inheritance tax in Cyprus is imposed on the transfer of property from the deceased to the heir(s). The tax rate ranges from 20% to 40% depending on the relationship between the deceased and the heir(s) and the value of the property.
- Gift tax in Cyprus is imposed on the transfer of property as a gift. The tax rate ranges from 20% to 40%, and is based on the value of the property and the relationship of the giver and receiver.
Tax on Property Income
- Income from renting out a property in Cyprus is subject to income tax. The tax rate ranges from 15% to 30%.
- There are certain tax advantages in buying a house in Cyprus. For example, the government provides a number of incentives for those who are interested in investing in real estate, such as reduced CGT rates for properties that are held for a certain period of time, and reduced property tax rates for properties that are used as a primary residence. Additionally, non-Cypriot residents may be eligible for a reduced VAT rate when purchasing a property.