WHAT ARE THE INHERITANCE TAX RULES IN CYPRUS?
Cyprus is one of the ‘privileged’ countries where inheritance tax is not applicable to Cypriot domiciles since estate duty was abolished in 2001.
However if the heirs live abroad they may have to pay in their own country inheritance tax for the property they inherited. This is an issue they need to clarify in their home state.
However, most people confuse the Inheritance tax with the transfer tax (fees). Title deed transfer fees in Cyprus are paid by the Buyer at the Department of Lands and Surveys simultaneously with the transfer of the property in the buyers’ name.
Transfer fees are calculated on the property’s market value on the date of purchased, as estimated by the Land Registry department. The buyer is exempted from paying transfer fees if the purchase transaction was subject to VAT.
HOW TRANSFER FEES ARE CALCULATED
| PROPERTY VALUE | TRANSFER FEE RATE |
| Up to €85,000 | 3% |
| €85,001 – €170,000 | 5% |
| Above €170,000 | 8% |
***Transfer Fees are reduced by 50% when the transaction is not subject to VAT
Orountiotis Law Firm has been engaged in Real Estate cases for over three decades. If you have questions, call us! We are more than happy to assist!