Okay, to clear things up a bit:
There is NO INHERITANCE TAX IN CYPRUS, it was abolished in 2004. The last time I checked there was a double tax treaty between Cyprus and the UK- meaning you choose where to be taxed. You will not pay inheritance tax on a property in Cyprus.
Tax Not Applicable
Capital Gains tax- 20% leveied on the profit- not strictly true.
Every name on the contract of sale (you can include everyone in your family if you wish) has a £10,000CYP untaxable profit. If you are a Cypriot resident of 5 years or more, that moves to £50,000 each. So if I invest with my wife, and I add our two kids, and my sister and her husband to the contract I can make £60,000CYP untaxed profit.
Tax Avoided
Immovable property tax- You will have to own a palace to be liable for this. Immovable property tax is an annual tax levied on property worth over £100,000CYP in 1981. The equates to £Millions in todays market; so chances are you won't pay a penny.
Tax Not Applicable
Stamp duty- you won't notice it, the solicitors fee will be more! Stamp duty is 0.15% up to £100,000 value, 0.25 on anything over. £100,000 CYP property will costs you £150CYP in stamp fees. Not much really is it?
Tax negliable
Property transfer Tax- Again, avoidable. You will be given the choice to pay this tax once your title deeds are ready from the land registry- which will be 3-5 years. You can seel before this time and incurr no fee. If you choose not to buy the title deeds you can add the price of purchasing them to the sale price of your property. On average it will be around £3000CYP, quite hefty but you will never pay it.
Tax avoided.
IF you want to know more, email me on:
s.cozzolino @pafilia.c om (Yes I do work for a developer, yes I do own property in Cyprus)
|