Pursuant to an amendment introduced on the 3rd of November 2011 by the Cyprus Parliament, Cyprus has now abolished the payment of transfer in regard to real property transactions. This measure, aiming to stimulate the Cyprus property market and create incentives for individuals who are considering an immovable property investment in Cyprus, shall apply in full only where the transaction is subject to VAT whereas, if not, the suspension shall take the form of a reduction in transfer fees in the level of 50%.

The major particulars of the new law are as follows:

• Abolition of payment of transfer fees for property transfers, provided that the transfer is subject to VAT.
• Reduction by fifty percent (50%) of transfer fees for property transfers, provided that the transfer is not subject to VAT.
• The above benefits shall only apply for contracts of sale executed from 2 December 2011 onwards and completed within a time period of six months thereafter.

For more information, please contact us at info@kyrlaw.com.cy