Yes, always when a property is sold for the first time by a developer / construction company, the purchaser must pay VAT.
19% VAT is applicable when purchasing a property as an investment.
5% VAT is applicable when purchasing a property as a main and permanent residence and provided that the purchaser/s satisfies the personal requirements as set out in applicable laws and regulations.
However, the full 5% VAT benefit, applies on the first 130 square meters of the property (subject to exceptions) AND up to €350.000 of the purchase price.
If the purchase and/or construction of the property surpasses the specified limits of 190 square meters or €475.000, the entire value will be subject to a 19% VAT.
The current projects of AMY Group however, do not fall within the above restrictions.
Yes, you are not permitted to rent / sell your property for a period of 10 years. In the event you proceed with either before the expiration of this period, you will have to pay the remaining VAT on a pro rata basis.
19% VAT is applicable when reselling a property when:
20% tax (Capital Gains Tax) is imposed on the gains arising on the disposal of immovable property. Lifetime exemption amounting to €85.340 is deducted from the taxable capital gain on the disposal of private principal residence. Other deductions pertaining to any renovations or other expenditure related to the property may also be claimed depending on the circumstances of each case.
Yes, he / she can, certain conditions will apply.
It should take about 2 months, all depending how quick you will provide to the bank all the necessary documents.
Each Bank has different requirements, but typically you will be requested to provide the following (but not limited to):
Each Bank has different fees and costs but typically you will have these costs:
Home insurance, allow a budget of about €2.50 / €1,000 of the property value per year, for example, for a property of €200,000 the insurance should cost €80 per year.
Stamp duty fees, based on the following calculation:
I. €0 – €5,000 – 0%
II. €5,001 – €170,000 – 0.15%
III. €170,001 – Over – 0.20%
Based on the above example of a property with a purchase price of €200,000 the stamp duty fee will be €308.
Yes, you will need to pay income tax based on the following tax bracket if you are a tax resident of Cyprus otherwise you must comply with the tax reporting requirements of the jurisdiction in which you are a tax resident: (percentage and tax brackets can change at any time).
Yes, you can, certain conditions apply.
When VAT is charged, there are NO transfer fees. For resales, transfer fees are estimated according to the value of the property, as evaluated by the Land Department at the time of transfer.
Yes.
The regular corporate tax rate in Cyprus is 12.5%, However some exemptions apply.
The executor / heir of the estate of the deceased, does not pay any taxes for the assets inherited in accordance with current legislation.
*All the above information, fees, document requirements and processes are subject to amendments and / or changes by the governing bodies, banks, etc. at any time and without any notice and although regularly checked and updated you should verify any and all information provided.
82 Athinon, Akinita Ieras Mitropoleos,
2nd floor, Office 211,
3040 Limassol, Cyprus
info@amy-realty.com
