Buying a property in Cyprus involves several costs beyond the purchase price. Whether you're considering a holiday home, an investment property, or a permanent residence, it's crucial to understand all the expenses involved. In this post, we'll break down the various costs you can expect when purchasing property in Cyprus.

1. Purchase Price

The most obvious cost is the actual purchase price of the property. This is the agreed amount between the buyer and the seller.

2. Transfer Fees

Property transfer fees are one of the most significant additional costs when purchasing property in Cyprus. These fees are paid to the Department of Lands and Surveys to transfer the title deed to the new owner. The fees are calculated based on the property's market value and follow a tiered structure:

  • Up to €85,000: 3%
  • From €85,001 to €170,000: 5%
  • Over €170,000: 8%

For example, if you're purchasing a property valued at €200,000, the transfer fee calculation would be:

Fee=(85,000×0.03)+(85,000×0.05)+(30,000×0.08)=€2,550+€4,250+€2,400=€9,200

For more details on how transfer fees are calculated, check our post on property transfer fees.

3. Stamp Duty

Stamp duty is payable on the purchase contract and is calculated as follows:

  • 0.15% on the first €170,000 of the purchase price.
  • 0.20% on the amount above €170,000.

For a property costing €200,000, the stamp duty would be:

Duty=(170,000×0.0015)+(30,000×0.002)=€255+€60=€315

Learn more about stamp duty in our comprehensive guide on stamp duty fees.

4. VAT

If you are buying a new property from a developer, you may be liable to pay Value Added Tax (VAT). The standard VAT rate in Cyprus is 19%, but for a primary residence, a reduced rate of 5% applies for the first 200 square meters of the property. For properties above this size, the remaining area is taxed at 19%.

For more information on VAT, refer to our detailed post on VAT for property purchases.

It's highly recommended to engage a lawyer when purchasing property in Cyprus. Legal fees typically range from 1% to 2% of the purchase price, plus VAT. This fee covers services such as due diligence, contract preparation, and representation.

6. Surveyor's Fees

Hiring a surveyor to inspect the property before purchase is a wise decision. The cost of a surveyor varies but usually falls between €500 and €1,000.

7. Mortgage Costs

If you are financing your purchase with a mortgage, you'll need to consider additional costs such as:

  • Mortgage arrangement fees: Typically 1% of the loan amount.
  • Valuation fees: Around €200 to €300.
  • Life and property insurance: Required by lenders to cover the loan amount and property value. Typically 1% of the loan amount.

Purchase Costs Calculator

For a convenient way to calculate the costs associated with your property purchase, check out our calculator. It can help you to estimate transfer fees, stamp duty, and other expenses to better plan your investment.

Purchase Costs Calculator
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Conclusion

Purchasing property in Cyprus involves a range of costs beyond the purchase price. By understanding and planning for these expenses, you can ensure a smoother transaction and avoid unexpected financial surprises. Always consult with professionals, including a lawyer and financial advisor, to help navigate the process and make informed decisions.