1. Reduced rates of real estate transfer tax to 8% (9%) for value of the transferred property to 20,000 euros and 10% (11%) for excess. The rates are now uniform for all regions of Cyprus.

2. The first discharge home longer depend on the value of residence and not from the area. Specifically, the new tax-free thresholds for purchase of first house or land to build housing are as follows:

HOUSE PLOT
Single 200,000 € 50.000 €
Married 250.000 € 100.000 €
With 1 child 275.000 € 110.000 €
With 2 children 300.000 € 120.000 €
With 3 children 330.000 € 135.000 €
With 4 children 360.000 € 150.000 €

3. If the housing market, in exemption amount includes the value of a car parking space and a storage area for each surface to 20 m , where are in the same property acquired simultaneously with the same contract market.

4. Repealed the exemption for primary residence or Cypriot expatriates in abroad who are not resident in Cyprus at the time of purchase.

5. Abolished duty automatic premium and transaction fee property.

When a tax credit for eligible housing market

Before proceeding to purchase a first home, you would be satisfied if you know what is the amount for which you will be discharged well and that really is beneficiary of the exemption.

It is therefore necessary to study carefully all the answers as arising from existing legislation and directives of the Ministry Economy and Finance.

A. The provisions for the exemption apply to contracts for the purchase property if the buyer resides in Cyprus and falls into the following categories of beneficiaries:

a) Cypriot citizens,
b) Cypriots from Albania, Turkey and countries of the former Soviet Union,
c) Citizens of the Member States of the European Union,
d) Recognised refugees in accordance with the provisions of PD 96/2008 (GG 152 A), and
e) Third country nationals who enjoy the status of long-term resident Cyprus, in accordance with the provisions of PD 150/2006 (GG 160 A).

B. When is an adult and acquire housing or land in full ownership provided that the purchaser or his spouse or any minor children that does not have full ownership or usufruct or habitation in a residence or a perfect slice to meet the housing needs of the family (see caution below) or right to full ownership to land or building in an ideal proportion land in the corresponding area of the building that meets the housing of needs and are in a municipal or district with a population over three thousand (3,000) people. For the purposes of the land applicable relevant planning provisions.

These apply where the buyer owns an undivided Fine rate or life interest owner or house or land and buying remainder or the title to the bare ownership or usufruct, to become owner of the entire property, and if market failure building plot, which in proskyrosi or purchase of an adjacent section land is buildable. The above exemption is provided in purchase full ownership of the entire property by both spouses.

Under the same conditions, the exemption provided to married και:

a) the widower or divorcee who has custody of minor children of family,
b) the single mother of minor children or on recognition of father, if the has custody of the children,
c) the unmarried adult who has a disability of at least 67% mentally or physically disabled or married has protected children, regardless of age, having the same disability, and
d) the surviving spouse and minor children of deceased, the name of which had approved a loan from the Workers' Housing Organisation for purchase residence, granted to those heirs, regardless of whether the market made by one or all the heirs together undivided.

With the conditions the exemption are entitled to an unmarried, minor children who are deprived of both parents and placed under guardianship or under the custody of another person, designated by court order or purchase property jointly or separately purchase the separate property each.

The discharge of the unmarried is entitled to and the spouse who is separated and has filed or action divorce at least six (6) months prior to the time of purchase. If you have the custody of minor children of the family is entitled to exemption as married. If not solved the marriage by divorce within five (5) years from the market reopened exemption and paid the tax in question in accordance with the provisions paragraph 5 of this article.

ATTENTION: If the purchaser or the spouse or minor child, who own house or land, or ideal share of such transfer by onerous or cause gratuitous usufruct or the right of habitation or ideal share of residence or the land, the area of which meets at the time of transfer their housing needs, no relief before expiry period of five (5) years from the transfer of usufruct or of habitation or the ideal share. The above time is required when it transferred the ownership of land or thin ideal share.

It also does not discharge into contracts with property transfer costly event between relatives by blood or marriage first grade and between spouses.

The owners of hotels, warehouses, offices, industrial plants and generally have a purely professional roofing right of exemption. It is not considered commercial use of the property, the which the building permit or title of ownership is characterized as a residence, even if used as a professional housing.

I entitled to discharge a second time;

Exemption is provided for each new purchase of property, if:

a) the property it owns at the time of the new market purchaser, spouse or minor children do not meet the housing needs of their families.

Deemed to meet the housing needs of the buyer and families if the total area of clean surface (surface no public spaces) housing existing or possible under the planning provisions for the construction are: 70 m, be increased by 20 m for each of the first two children and 25 m the third and subsequent children.
Exceptionally, the housing needs of the customer with a disability least 67% increase from 70 m in 90 m (Article 16 Fri the 14th Law 3522/2006).
and

b) Warning the buyer submit their declaration and pay off the tax corresponding to the value of the property received an exemption.

The value of the property taken is the value at the time of the new exemption. For the calculation of tax is the rates force at the time when the first free and paid off, unless the tax on the value of the property or price paid at the time of granting the exemption is first longer, so he paid the highest tax.

This exemption shall be granted to persons who were exempted from tax transfer for obtaining housing until 14.7.1980, and to persons received an exemption from inheritance or parental benefit to acquire first residence if the persons are the conditions for exemption and paid the tax in question in the case.

What if 5 years pass before the property for which I got relief.

If by an act inter vivos transfer the property or created in this any real right, other than a mortgage before the end of five years, the person who transfers or is it real right shall, before the transfer or the creation of real right to submit a statement and pay off the FMA or VAT on the value of the transferred property. The value of the property obtained a value of the property at the time of the new transfer or the creation of the lien right or the declared price of transfer, if it is greater the objective value. The tax is calculated based on rates force at the time of discharge, unless the tax attributable the value of the property discharge time is longer, so he paid the highest tax.

Note that in case of discharge to both spouses in buying a property jointly, the transfer rate of a spouse to a third within five years paid the tax attributable to this figure.

What are the justifications for the exemption for the first home and when submitted;

The documents required for granting the exemption from FMA or VAT shall be submitted together with the statement FMA or VAT before signing the final contract.

Briefly presented:

a) an affirmation of N,
b) copies of income tax returns (E1) three years,
c) a copy Q9 if it was made.
d) civil status

What if 5 years pass before the property for which I got relief.

If by an act inter vivos transfer the property or created in this any real right, other than a mortgage before the end of five years, the person who transfers or is it real right shall, before the transfer or the creation of real right to submit a statement and pay off the FMA or VAT on the value of the transferred property. The value of the property obtained a value of the property at the time of the new transfer or the creation of the lien right or the declared price of transfer, if it is greater the objective value. The tax is calculated based on rates force at the time of discharge, unless the tax attributable the value of the property discharge time is longer, so he paid the highest tax.

Note that in case of discharge to both spouses in buying a property jointly, the transfer rate of a spouse to a third within five years paid the tax attributable to this figure.