Mortgage fees in Cyprus, levied by the bank, are usually equal to 1% of the cost of mortgage real estate and are paid immediately upon signing the mortgage agreement with the relevant bank. Other small expenses related to document processing fees are usually between 70 and 100 euros.
A mortgage with payment of only interest is still available in some cases, but only with the purchase of real estate on the primary housing market, and only for the period until the completion of construction and completion of the property. With a mortgage with payment of only interest, they are accrued only on the actually released amounts. For example, if a property is purchased at the stage of construction in progress for 250,000 thousand euros with an approved mortgage of 200,000 euros, and only 50,000 euros are released upon completion of construction, the interest on the mortgage will be calculated only for 50,000 euros, and not the entire approved amount (200,000 euros).
Local banks issue loans in local currency, as well as in foreign currency of your choice (you can alternatively apply for a loan at any private bank abroad). The maximum loan amount issued by the Bank of Cyprus is 80% of the sale price of the property. A citizen can apply for a mortgage with a maturity of up to 40 years, provided that at the end of the 40-year period he / she will be no more than 70 years old.
When signing the contract, the buyer must pay stamp duty at a rate of 0.151% of the value of the property up to 170 860 euros and, accordingly, at a rate of 0.201% on the value of the property exceeds this amount.
This fee covers the actual re-registration of ownership of you, and is payable when the property is registered in your name with the Land Department. This must be done after approval by the Council of Ministers (for non-residents of the EU) and is carried out by accepting all relevant documents in the Land Office- closest to you (an analog of our Reg Chamber).
Fees for re-registration of the right to real estate are paid only once in the Land Department based on the following rates:
Property Value - Real Estate Renewal Fee Rate
The following rates also apply in the event of a free transfer of rights:
IMPORTANT: from December 2, 2011 to December 31, 2016 no fees are paid when transferring rights to real estate from the purchase of which VAT will be paid. If VAT is not payable on the property, fees for renewal of property rights will be reduced by 50%. This is true provided that the purchase agreement has been drawn up and submitted to the Land Department during this period.
Cyprus property for Russians is not taxed, as well as for citizens of any other jurisdiction. But there are other taxes that are paid upon acquisition and upon sale.
The income tax on capital is 20% of the profit arising from the sale / resale of your property. However, there are very large benefits and deductions from income tax on the sale of real estate in Cyprus for Russians, as well as for other foreign citizens who own and sell real estate. Since inflation is also taken into account when calculating profits, the total amount taxed in combination with benefits and deductions is very small.
Inheritance tax was abolished on January 1, 2000.
The transfer / sale of only constructed real estate, for which an application for permission has been submitted to the relevant authorities, is subject to VAT at the standard rate, which is currently 19% (in 2018).
From June 8, 2012, anyone who acquires their first permanent home in Cyprus can apply for a VAT reduction of up to 5%. It is no longer necessary (as before) to first become a permanent resident and then submit an application for a reduction in the VAT rate. The buyer must fill out the VAT form with the tax authorities (as the Cypriots do), declaring his intention and obligation to use the house that he / she buys as a permanent residence for himself and / or his family in Cyprus.
Please note that if the buyer ceases to use his property as a permanent residence in Cyprus, including the resale of the property, within a period of less than 10 months from the date of its ownership, then the Buyer must pay the tax authorities the remaining amount of Cyprus VAT in the amount of 14% (19%, reduced by 5%) of the purchase price.