Frequently Asked Questions about buying or selling a property in Larnaca, Cyprus
Are there any legal safeguards for foreign buyers?
The legal safeguards both for foreign and local buyers are identical; it is highly recommended that the sales contract is deposited at the Larnaca Land Registry within 60 days from the sales contract signing date. This will protect the buyer’s right to the property.
How can I obtain a Cyprus Resident permit?
In order to obtain a TEMPORARY RESIDENCE PERMIT, the candidate must have a bank account in Cyprus, showing foreign income which must be sufficient to sustain the candidate an his/her family. Furthermore, the candidate must have a legitimate sales contract for the property purchased (stamped by the Tax Office) and submitted with the application. Temporary residency status may be issued for a period of one to four years.
In order to obtain a CYPRUS PERMANENT RESIDENCE PERMIT, the candidate must provide proof that he and his/her family are self supported and have been residing in Cyprus for more than five years continuously. Further information and documentation will be requested at the time of the application.
Candidates that purchase a property of €300,000 + vat or more are given the opportunity to apply for a fast track permanent residence permit. For further information about this new regulation please read our article - Cyprus permanent residence permit (PR) without the right to work.
How much Capital Gains Tax will I have to pay if I sell my property in Cyprus?
Capital gains tax in Cyprus is set at a rate of 20% on the gain. The first €17.086 of the gain is tax-exempt per person. For example, if two people jointly own a property then they will be jointly exempt of €34.172 of capital gains tax.
Furthermore, if you are selling your main private residence (for the first time)of which you have owned for a period of at least five years or more, then you will be entitled to a tax exemption of €85.430.
It is highly recommended that you pre-plan and account for the capital gains tax before you market your property for sale to avoid any issues at the point of sale. You will not be able to proceed with the sale of your property if the Capital gains tax is not paid prior to completion of the sale.
Do I have to pay Inheritance Tax in Cyprus?
Currently, there is no inheritance tax to pay in Cyprus. Please note, when you sell the inherited property, you will be liable to pay capital gains tax on the gain made.