Taxation and other Payments
Fixed tax (annual property tax).
The property tax is not due to be paid if the property value is less than € 170.860. If the property value is more than € 170.860 the property tax has to be paid as follows:
Property value, CYP Tax per 1000, %
€170.860 - 427.150 0,2
€ 427.150 - 854.300 0,3
More than € 854.300 0,35
In this case the first € 170.860 is paid while providing the basis for calculation of the above tax.
Payment of the property tax is provided annually in September.
Since Cyprus is an attractive place for sale investments and holidays, your property is easy to be resold. In this case, money has to be removed from the country as follows:
- the sum equals the purchase price - immediately, after concluding Sale - Purchase Agreement;
- the balance, which is the part of your profit - by parts, but not exceeding € 85.430 per year, starting from the year following the sale.
It is important to remember that fro safety, the Permit from the Central Bank of Cyprus is required proving the original foreign origin of the currency, which was used for purchasing the property. In case your profit from resale equals more than € 85.430 , you have to pay a Gains Tax in amount of 20% from the sum exceeding € 85.430 .
Currency transfer into Cyprus.
Any money transfers to Cyprus are easy to provide due to the well - developed banking system of the island. The transfers of pensions, salaries and other investments are executed quickly and effectively.
All foreign businessmen are released from investment taxes; profit taxes for offshore companies are reduced to 4,2%; double taxation with Cyprus is excluded.
Duty-free import and purchasing of goods.
A foreign citizen has a right to import his car into Cyprus, as well as his own personal belongings and items duty-free.
This category includes TV and video appliances, refrigerators, washing machines, carpets, curtains, mats, bedroom linen, kitchen utensils, crockery and furniture - almost all the important household items.
To obtain a duty-free permit you have to stay in Cyprus not less than 365 days. You should also provide an application to be resident in the island and all the proofs required. It's sufficed to provide the Contract for purchasing of property and the Employment Contract.
Inheritance Tax was abolished as of 1st January 2000.