The annual immovable property ownership tax is based upon the value of the property. Certain immovable types of property are exempt.
IMPORTANT: Immovable property tax is based upon the value of the property in 1980, which is much lower than the current market value. So there is no immovable property tax for the majority of properties in Cyprus.
Acquiring the Title Deed
Transfer of ownership from vendor to purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party (i.e. a Licensed Estate Agent) with a Power of Attorney.
In the case of the non-Cypriot, a prerequisite of registration is evidence that the property has been paid for with foreign exchange.
When one buys a piece of land or a house, the seller as a rule must have a title deed in his own name, which can be transferred to the purchaser. However, if one buys a flat, especially one still under construction, there is no title-deed in existence for the flat and sometimes the seller does not have a title-deed even for the land on which the building is being built because it may still be in the name of the original owner from whom the developer has purchased the property and to whom he stills owes money. These are matters which the purchaser's lawyer must consider and embody in the contract, as well as take such other steps as may be necessary so as to safeguard the interests of the purchaser.
On signing of the contract and until the title deeds are issued, most reputable developers are happy to provide a Bank Guarantee as security towards the purchase, the cost of which will be payable by the buyer. The title deeds are transferred to the buyer's name following the settlement of the agreed selling price as soon as they are issued by the Land Registry Department.