Cyprus Property Forum for Buyers, Sellers & Investors

Nigel,

I am writing further to doing some research about Real Estate in Cyprus and came across your website, which I found to be very useful. Two things; What about any Capital Gains or Inheritance Tax that may be payable on property in Cyprus by me and my brother who are the beneficiaries of the estate? My father lived and was domiciled there since 2007, though recently passed away. He owned a 4 bedroom detached villa in the Kolossi area of Limassol. The title deeds were on his name. Secondly , what is the market like currently with demand from buyers ? My father paid 325,000 back in 2010 and it was a new build.

Yours,

Chris Christodoulou

Hi Chris

I'm sorry to hear that you father passed away recently.

Regarding your questions on taxation:

There is no Inheritance Tax or Estate Duty in Cyprus. As for Capital Gains Tax, you will be liable for this when you sell the property. I believe (but you'll need to check with a lawyer) that the capital gain is assessed using the formula sale price achieved - the property's 1980 value as shown on its Title Deed. The tax on the capital gain is 20%, but you and your brother will each have a personal allowance of €17,086.

You cannot sell the property until your late father's will has gone through probate (in Cyprus this can take a year). Until probate has been granted your late father's assets are frozen.

I've done a quick search on the Internet and found 3 four bedroom properties for sale in Kolossi. They range in price between €285,000 and €412,000.

The property market is slowly improving - sales are rising, but prices are in the region of 12%-15% lower that when your father bought in 2010 (based on the house price index produced by the Cyprus Statistical Service).

Regards,