Your local authority will make an annual charge to cover such services as street lighting and refuse collection. The amount depends upon the area and the size of the property but generally ranges between €85 and €308 per annum at present. Expatriate retirees are taxed at a flat five per cent per annum on pension and investment income brought into Cyprus, with exemptions totalling around €6,800 per person. Immovable Property Tax is imposed on the market value of the property and applies to the immovable property owned by the taxpayer on 1st January each year. Property valued below €170,860 is except. From €170,860 to €427,150 it is 2 per cent, from €427,150 to €854,300 it is 3 per cent and over €854,300 it is 3.5 per cent.
Capital Gains Tax (CGT)
When you come to sell, unlike in the UK, Capital Gains Tax (CGT) is payable on your own, main home when you sell it in Cyprus. On gains from disposal of immovable property situated in Cyprus, the first €17,086 is exempt for each person. After that, capital gains tax is 20 per cent. The gain is the difference between the sales proceeds and the original cost of the property. The seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Gains from the disposal of a private residence are exempt up to €85,430 in total if the owner resides in it continuously for at least five years prior to disposal. There is no inheritance tax in Cyprus.