Frequently Asked Questions
Can I set up a company with Permanent Residence (PR)?
Yes.
Do I need to come to Cyprus at all if I am buying or selling a property?
You do not need to come to Cyprus at all during the conveyancing process. We can deal with almost everything for you.
Do I need to pay all the money for the property under PR in advance?
No, stage payments apply according to construction progress (Note: for the application to start the first €210.000+VAT needs to be paid).
| Tax resident with Cypriot Father (Domiciled) | ||||
| Income tax | SDC* | GHS** | ||
| Dividends(CY&abroad) | n/a | 17% | 2,65% | |
| Interest (CY&abroad) | n/a | 30% | 2,65% | |
| Rental income (CY&abroad) | Taxable normal rates | 3% on 75% of gross income | 2,65% | |
| Salary (CY&abroad) | Taxable normal rates | n/a | 2,65% |
*Special Defence Contribution
** General Health System
| Tax resident with No Cypriot Father(Non‐domiciled) | ||||||||||
| Non‐tax resident | ||||||||||
| Personal Income Tax | ||||||||||
| Income tax | SDC | GHS | ||||||||
| Dividends(CY&abroad) | n/a | n/a | 2,65% | |||||||
| Interest (CY&abroad) | n/a | n/a | 2,65% | |||||||
| Rental income (CY&abroad) | Taxable normal rates | n/a | 2,65% | |||||||
| Salary (CY&abroad) | Taxable normal rates | n/a | 2,65% | |||||||
| Income tax | SDC | GHS | ||||||||
| Dividends | n/a | n/a | n/a | |||||||
| Interest | n/a | n/a | n/a | |||||||
| Rental income (CY only) | Taxable normal rates | n/a | 2,65% | |||||||
| Salary (CY only) | Taxable normal rates | n/a | 2,65% | |||||||
| Corporation Tax ‐ with Tax resident and Non‐tax residentshareholders | |||
| Chargeable income tax year | Tax rate | Accumulated tax | |
| € | % | € | |
| First 19.500 | Nil | Nil | |
| From 19.501 ‐ to 28.000 | 20 | 1.7 | |
| From 28.001 ‐ to 36.300 | 25 | 3.775 | |
| From 36.301 ‐ to 60.000 | 30 | 10.885 | |
| Οver 60.000 | 35 |
| Tax | 12,5% |
Do I need to use my own lawyer in Cyprus?
It’s upon the buyer’s choice to do so. Nevertheless, it provides peace of mind.
How can I buy a house or apartment in Cyprus?
After you find the property you would like to buy, you should appoint a lawyer to do the due diligence and contracts. The lawyer will take care the transaction for you and make sure that you have a smooth process.
How can I find a property for sale in Cyprus?
Typically, through estate agents, developers or your own network.
How do I prove my source of funds in Cyprus banks?
Depending on the specific bank’s requirements there is a list of documents that the buyer should provide in order for the bank to evaluate the buyers source of wealth.
How long does a reservation deposit take the property off the market?
The reservation deposit usually takes the property off the market for a period of around 30 days (or as otherwise agreed) to allow for searches to be carried out and the transfer of further funds for the signing of contracts.
How much time does it take to buy a property in Cyprus?
Typically, most conveyancing transactions in Cyprus take anywhere from 3 to 6 months. Timing depends on the availability of funds, the cooperation of the involved parties (buyer, seller and their lawyers) and the date on which the seller wishes to vacate the property, KYC and AML procedures, loan approval (if proceeding to loan application).
What do I need to pay if I am buying property in Cyprus?
The following is an indicative list of the things you may have to pay when you are buying property in Cyprus in addition to the purchase price:
-The purchase price
-Transfer Fees (unless the property is new which has VAT instead of Transfer Fees)
-Legal Fees, VAT and Disbursements (for example stamp duty)
-Cost of connection of utilities