Land and Property Purchase Deeds
Guıde to Taxes for Property Transactıons

                                                                               Buyer's Guide
  With regard to the purchase of land or buildings, there are the different types of property, and the title deeds.Here is a brief information that shows how the buying process works.

   There are currently four different types of Titles:

i. TRNC Title (Land issued to Turkish Cypriots by the TRNC government in exchange for their land left behind in the south, that was previously Greek owned prior to 1974).
ii. Turkish Title (Turkish owned prior to 1974)
iii. Foreign Title (Owned by foreigner i.e. British, German, American etc.}
iv. Leasehold (property is owned by the Ministry of Tourism, who could grant long-term leases of up to 49 years)
 

   Land in Cyprus is measured in donums
1 donum = 1338 m2 or 14400 square ft
1 donum consists of 4 evleks
1 evlek = 3600 ft
1 acre = 3 donums
 

Outside the Municipal boundaries, there are restrictions on the area that one can build on (20% of the land area), and a height restriction of two storey.

Foreigners are limited to one donum per person (husband and wife count as one person unless they have different surnames).

   Additional Costs
a) 5% VAT
b) 3% (Purchase Tax) Payable on transfer of Title. The Purchase Tax is based on the Land Registry Valuation of the  property. (stamp duty)
c) % 1 of the 3% Local Council Fees.
d) Solicitor fee is around GBP-1000.
e) The purchase permit application costs between 750 and 1500GBP.
f) Utility connection charges (Water, Electricity and telephone) are approximately between 200-300 GBP

   The process for buying any freehold property is as follows:
i. Decide the best property for you and agree on the price.
ii. A contract will be drawn up by a solicitor. That will include terms of sale, timescale & conditions
iii. Buyer and Seller sign the contract.
iv. The Buyer provides 30% of the purchase price as deposit.
v. The purchase of freehold title property, will require a number of checks to be carried out by the Ministry of Interior, so  your solicitor will apply to take purchase permision for you, this may take between eight to twelve months to be clarified.
     As soon as the purchasing permit is received, the remaining balance is due form the buyer.
vi. The Buyer pays the balance and the Seller signs the title deeds into the name of the buyer.
vii. The Sale will be completed.

   The process for buying property from a foreigner (British, German, American etc.) is as follows:
i. Decide the best property for you and agree on the price.
ii. A contract will be drawn up by a solicitor. That will include terms of sale, timescale & conditions
iii. Buyer and Seller sign the contract.
iv. The Buyer provides 30% of the purchase price as deposit.
v. as the checks have already been carried out by the Ministry of Interior no more permision is needed. So, the Buyer pays the remaining balance and the Seller signs the title deeds into the name of the buyer.
vi. The Sale will be completed.

   The process for buying a leasehold property is as follows:
i. Decide the best property for you and agree on the price.
ii. A contract will be drawn up by a solicitor. That will include terms of sale, timescale & conditions
iii. Buyer and Seller sign the contract.
iv. Seller applies to Tourism Office to transfer lease.The Buyer also applies to take over the lease and 10% deposit must be paid.
v. When the application is accepted the remaining amount will be paid to the seller and lease transferred.
vi. The Sale will be completed.