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Taxation

INCOME TAX RATES

Tax %     Tax Base (EUR)
0             Up to 19,500
20%        19,501-28,000
25%        28,001-36,300
30%        36,301 and over
 

COMPANY TAX AND CORPORATION TAX

Cyprus in one of the lowest taxed countries in the World and the least taxed amongst the EU members. Due to this, its good infrastructure and favourable double taxation treaties with numerous countries (40), the island has become one of the most reputable offshore centres, with the establishment of over 17,000 foreign companies (named International Business Companies IBC’s).
The recent legislation on tax reform has separated the resident companies (i.e. Companies whose management and control is exercised in Cyprus) and the non-resident companies (i.e. Companies whose management is exercised outside Cyprus).

The Corporation Tax in Cyprus is only 10%

Double Taxation Agreements
 

Cyprus has signed double taxation agreements with 40 other counties in order to avoid paying tax twice.

IMMOVABLE PROPERTY TAX
 

Remember that prior to the conclusion of the transfer, you should pay all outstanding immovable property taxes and produce the receipt to the Land Registry. The annual immovable property tax is calculated on the market value of the property as at 1st January 1980.

CAPITAL GAINS TAX

Capital Gains Tax is levied at the rate of 20% on gains arising from the disposal of immovable property or the disposal of shares of companies, the assets of which consist mainly immovable property.

INHERITANCE TAX
 

Inheritance Tax was abolished as from 1/01/2000.

COUNCIL TAXES
 
Council Taxes are payable to the Council at which your property is listed at the end of each year. The said taxes are due to be paid by you once you get the delivery of the property and not prior to that.
Council Taxes are of the approximate amount of EUROS 400= per year depending always at which Council your property is listed.

OTHER FEES AND EXPENSES
 

STAMP DUTY FEES

The buyer pays all Stamp Duty Fees at the rate of Euros 1.50 per thousand of the value up to Euros 100,000. Over this amount the Fees are Euros 2.00 per thousand. The documents should be stamped within 30 days after their signing in order to avoid the payment of a fine, which could be a substantial amount of money.

TRANSFERING FEES
 

The transfer fees are calculated as follows:

Property value (Euros)  Transfer fees      Accumulated Transfer Fee (Euros)

0-50,000                       3%                 1500
50,000-100,000              5%                 4000
100,000- and over          8%                  ----

UTILITY BILLS

Electricity, water and telephone connections cost approximately EUROS 100= each and the bills are payable monthly or quarterly.
The bills are not high comparing to other countries but they are always depended on the consumption.
For off-plan properties, the bills are payable after completion.

LEGAL FEES

The legal fees are of the approximate percentage of 2% to 2.5% of the purchase price all inclusive.
This includes the legal fees of the approximate percentage of 1.25% plus the VAT 15% plus the real expenses of the amount of 0.75% which includes stamp duty on contracts and power of attorneys, postage and administration and 0.5% for a mortgage arrangement fee.