What are property transfer fees?
In Cyprus, property transfer fees are paid when the title deed is officially transferred to the buyer's name. These fees are calculated based on the purchase price or the market value of the property, whichever is higher.
How are transfer fees calculated?
The rates are tiered: 3% for the first €85,000, 5% for the next €170,000, and 8% for any amount above €255,000. This means buyers pay more as the property value increases.
Exemptions for first-time buyers
First-time buyers can benefit from exemptions or reduced transfer fees for properties up to a certain value, often tied to the VAT status of the property. For example, new properties subject to VAT might have different rules compared to resale homes.
Tips to reduce transfer costs
Buyers should ensure correct property valuation to avoid overpaying fees. Consulting with a lawyer early can help identify available exemptions and ensure all paperwork is handled correctly.
Final thoughts
Understanding transfer fees and exemptions can save thousands of euros and make the home-buying process smoother. Always factor these fees into your budget when planning your purchase.