Stamp duty and Transfer fees

Stamp Duty

Stamp Duty Law Amendment

New rates have been announced for stamp duty when buying a property in Cyprus, taking effect from 1st March 2013. This is not to be confused with title Deeds/Transfer Tax, this is a different levy.

The change is the introduction of a first tier of €5,000 which is tax free. This is one of the few examples of taxes going down instead of up in the past few years.

The new rates for all contracts to be stamped are as follows:

1 - 5,000 Zero duty

5,001 - 170,000 €1.5 per €1,000 value (i.e. €1.5 per thousand)

170,001 - And above €2.0 per €1,000 value (i.e. €2.0 per thousand)

The maximum charge is € 20.000.

For example a property sold for €250,000 will carry stamp duty as follows:

The first €5,000 Carry a Zero rate 0

Next €165,000 Carry €1.5 per thousand €247.50

The rest €80,000 Carry €2.0 per thousand €160.00

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€250,000 Total Stamp Duty €407.50

 

Transfer Fees
On transfer of the title deed into the name of the Purchaser, the Purchaser must pay transfer fees to the Land Registry Office.

Transfer fee rates are as follows:

Value of property (Euro)

Transfer fees
up to 85,430.07                                 3%
between 85,430.08 - 170,860.14         5%
over 170,860.15                                8%

However, if the purchase is made in joint names the value is based on each party purchasing a property of half the value and the totals then added to get the final amount.

 Please Note

The above information has been compiled as a general set of guidelines only and for most of the procedures mentioned it would be advisable to seek legal advice.

 

Source  http://www.kalogiroulaw.com/

 

 

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