Real Estate Tax

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Real Estate Tax

Post  Twosox on Thu Apr 10, 2008 7:23 pm

Annual real estate tax is calculated on the market value of property

Up to CYP100,00 nil
CYP100,001-250,000 2.5%
CYP250,001-500,000 3.5%
Above 500,001 4%

There may be further property taxes between 0.1% and 0.5% per annum levied by local authorities.

Real estate transfer tax will be payable on consideration or on market value, whichever is the higher

up to CYP50,000 3%
Cumulative tax on upper limit CYP1,500

CYP 50,001-100,000 5%
Cumulative tax on upper limit CYP4,000

Above 100,001 8%

There is a transfer tax on gifts of real estate within a family, but the amounts are relatively low.

Estate duty is levied on property of all types. Some deductions are permitted, including debts, taxes and charitable donations up to CYP50,000. For a person not domiciled in Cyprus, there are some exclusions:

Shares in a company owning a Cyprus ship
Shares in an offshore company
Bank deposits in Cyprus, whether on- or offshore.
There are further deductions for surviving family members, and the first CY£150,000 of the value of a residence is free of tax.

The rates of duty on the chargeable estate are as follows:

– up to CYP20,000 nil
– CYP20,001-25,000 20%
– CYP25,001-35,000 25%
– CYP35,001-55,000 30%
– CYP55,001-80,000 35%
– CYP80,001-105,000 40%
– over CYP105,000 45%

Gifts inter vivos within three years of death are taxable; however it is possible to use discretionary trusts to avoid the tax.

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