CYPRUS - A GUIDE TO THE EXPENSES INVOLVED
Annual immovable property ownership tax is imposed by the government at the rate of £0.80 per £1,000 depending on the value of the purchased property.
Stamp Duty is levied at the rate of £1.50 per £1000 spent up to £100,000 and £2 per £1000 thereafter. There is also an indexation (inflation) allowance. In addition to this, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Gains from the disposal of a dwelling house are exempt up to CYP£50000 in total if the owner resides in it continuously for at least five years prior to disposal.
As from 1 August 1980 capital gains tax is levied at the rate of 20% on gains in excess of CYP10,000 arising from the disposal of immovable property by individuals.
The municipal authorities levy an annual property tax at the rate of £20 - £30 per annum.
The sewage board of each district impose a sewage tax of £20 - £40 per annum.
Local authorities charge £30 - £100 for the regular collection of rubbish, street lighting etc. (cost depends on the area of the purchased property).
If the property purchased is within a project/complex/development with common areas, a general agreement is signed on possession of the property and a community fee is levied to cover the property owners share of the cost of cleaning, repairing and maintaining the common areas i.e. electricity for outside lighting, landscaping, gardening, swimming pool maintenance and management fees. These are calculated per square metre for each property, payable annually in a lump sum at the beginning of each year. This price may escalate per annum, in accordance with the law of the Republic of Cyprus Retail Price Index, which is in accordance with inflation and the cost of living.
Charges for utilities are payable to the respective authorities at intervals, and can be paid by direct debit on connection. Water is supplied at £45 deposit plus quarterly charge of approximately £6 plus actual consumption, electricity is supplied at £10 deposit plus consumption every 2 months, and telephone is £23 deposit for a mobile line, £30 deposit for an analogue line and £40 deposit for an I.S.D.N. line, plus the line rental and consumption every month.
With Cyprus joining the EU, currency exchange control restrictions have been abolished both in respect of purchasing and selling immovable property. | 
