Taxes in Europe Database v2
Law No 78(Ι)/2000 as amended. The tax was abolished for deaths happened after the year 2000.
The Republic of Cyprus.
All natural and legal persons who apply for transactions taking place at the appropriate District Lands Office of the Department of Lands and Surveys.
Fees for immovable property transactions. Immovable property value.
Fees for immovable property transactions.
Immovable property value.
1. No fee is charged in respect of any transaction to which the Government of the Republic of Cyprus is a transferee.
2. No fee is charged in respect of any transaction to which any other government of any foreign state is a transferee in case the Government of the Republic of Cyprus approves the exemption.
3. No fee is charged upon the registration of a title to immovable property :
(a) acquired by inheritance
(b) that was previously compulsorily expropriated and was afterwards returned back to its previous owner by the expropriating authority.
(c) that is acquired by a public benefit institution or organization which does not perform an “economic activity”. For the purposes of the provision of the legislation at hand, “economic activity” means every activity including offer of goods, or services in a given market and which it is probable to be exercised by a private legal person having a profit making feature.
(d) in relation to transfer of immovable property from one company to another due to reorganization, the existence of which ( i.e. of the reorganization) is verified by the Director of the Department of Inland Revenue.
4. No fee is charged for the transferring of a mortgage from one company to another due to reorganization of the two companies, the existence of which is verified by the Director of the Department of Inland Revenue.
5. No fee is charged for the registration of a lease of Government immovable property for the benefit of refugees.
Deductions/ Returns of Fees:
1. When the immovable property is transferred from a partnership to a company, and the only shareholders of the company are the same persons as the partners forming the partnership or in the case that the only shareholders of the company to which property is transferred are the “transferor” and his close relatives and ( in both cases described above) at any time during the 5 years´ period from the date of transfer of the property, sufficient evidence of the facts described above is presented to the Director of the Department of Lands and Surveys, the Director returns the fees paid for the transaction, reduced by an amount of “ 4% X value of the property transferred as evaluated at the date of the declaration of the transfer”.
2. Fees for the registration of immovable property in case of “antiquities” or “listed buildings” are returned if a certificate by the appropriate authority is presented at the Department of Lands and Surveys that the relevant building does not require any preservation or that the maintenance of the building has been completed.
3. In the case of transfer from a family company ( i.e a company in which the shareholders are the spouses and/ or their children) to a spouse or child or relative within the 3rd degree of kindred, the fees paid at the appropriate Lands Office are lower compared to the normal fees paid in other cases of registration of title by transfer( i.e by sale, gift, or exchange of property).
TRANSFERS OF IMMOVABLE PROPERTY:
(a) Upon gift or sale by parents to child, the fees are levied on the assessed value of the property (which is the real value of the property around the year 1920) .......... 4%
(b) Upon gift from spouse to spouse and from relative to relative within the third degree of kindred other than upon gift by parent to child on the assessed value of the property .......... 8%
(c) Upon exchange of property from relative to relative within the third degree of kindred or from spouse or upon exchange of properties of equal value on the assessed value of the property .......... 4%
(d) Upon sale other than by parent to child and upon gift from relative to relative other than within the third degree of kindred on the sale price or on the market value of the property (at the time of the agreement between the parties):
(e) Upon exchange of property other than from relative to relative within the third degree of kindred or other than upon exchange of equal market value
Each transferee shall pay fees on the assessed value of the property with the lowest market value whereas the person acquiring the property with the highest market value shall pay fees on the difference of the market value between the two properties.
1. Registration of Mortgage:
On the amount advanced under the mortgage .......... 1%
(a) Provided that, where an existing mortgage is cancelled and on the same day a new mortgage is declared by the mortgagor in relation to the same property, for the same purpose either with the same or another mortgagee, the fees payable shall be the lower of the following two amounts:
(b) It is provided that when an existing mortgage, is cancelled and on the same day, the mortgagor declares a new on another property that is registered in his/her name, with the same mortgagee, then the fees that are payable are the following:
2.Transfer of Mortgage :
On the amount of the outstanding debt:
I. Upon transfer by parent to the child: either 0.5% on the amount of the mortgage or €500,00 whichever is the lower of the two amounts.
II. In all other cases: .......... 1% on the amount of the mortgage
Registration of Lease or sublease:
I. Upon lease or sublease by parent to child or by child to parent or from spouse to spouse or from relative to relative within the third degree of kindred :0,5% on the market value of the lease ( minimum fee €8.54)
II. In all other cases 5% on the market value of the lease (minimum fee :€17.09)
Date on which the transaction is performed at the appropriate District Lands Office.
Department of Lands and Surveys.
There is no single rate for the fees paid in relation to transactions performed at the Lands and Surveys Department. A summary of the most usual transactions and the corresponding fees levied is described below for reference.