A Reservation Deposit Agreement is not compulsory and it is in the discretion of the Seller and Purchaser to entered into the said Agreement prior to the signing of their Sales / Assignment Agreement.

Yes, provided that the relevant probate order appointing an Administrator of the Deceased estate and the relevant probate tax clearances have been issued.

Yes, the transfer of Property as a gift is usually taking place between persons who have family bonds with each other, e.g., parents to children.

A Third Country National registering a Property in his/her name in Cyprus need a Council of Ministers permit. A National or European Union Citizen do not need Council of Ministers permit.

There are specific conditions for the issue of the Council of Ministers permit, as to the number, the size and the type of a Property or Properties the Third Country National is entitled to acquire in Cyprus.

When such circumstances arise, it is possible for the Seller to grant a power of attorney appointing a third party as their representative for the purposes of their transaction.

Our Law Firm’s members may also undertake to act on the behalf of the Seller through the whole conveyancing procedure as their lawful legal representative, before all the necessary government authorities in Cyprus, provided that a relevant power of attorney is provided.

Please note that as soon as the drafting of the relevant power of attorney is concluded, it will need to be properly signed and duly stamped and certified.

The Sale can take several months, depending on the specific circumstances of each property sale, e.g., whether a sales or an assignment agreement will need to take place.

It’s advisable to work with a Cyprus lawyer to navigate potential delays and ensure all legal requirements are met.

• Capital Gains Tax at 20% tax on the profit from the sale. Exemptions of No CGT might apply.

• Refugees Tax at 0.4%.

-Original Purchase & Selling Price.

– Costs of Acquisition and Costs of Sale:Legal fees, Agent commissions, Advertising costs.

-Improvement and Renovation Costs.

-Acquisition and Sale Date.

-Information as to generating Income from the Property in the form of Rents.

*Documentation as per the above will be required by the Tax Department for the calculation of the CGT.

It is usually applicable when the sale concerns the Primary Residence, which was the Seller’s main residence for at least 5 years. In such a case up to €85,430 of the gain is exempt and this exemption is used once in a lifetime. Relevant documentation will be requested by the Tax Department for the application of the 0% CGT exemption.

Other usual cases are:

– No CGT is applied when property is transferred upon death.

– No CGT is applied when property is transferred as Gift between close Family Members, such as spouses, parents, children and siblings.

*No GPT also applies in some other more rare cases.

Hiring a Cyprus lawyer is highly recommended, since a lawyer will assist with the documentation necessary for the Seller’s transaction, draft and review the Contract of Sale, and guide the Seller through the whole transaction process until completion, securing the Seller’s legal interests in the best way possible.