No hidden costs, no surprises – just a smooth, safe and rapid journey to the home of your dreams.
The process of leasing property at Limassol Marina is very simple. Our experienced and knowledgeable team at Limassol Marina is there to guide you through every step of the process.
• Legal safeguards for lessees
• Financing the lease of your property
• Legal costs
• Property duties & other costs
• VAT payable
• Annual property fees & taxes
• Subleasing your property before your title deed is issued
• Permanent Residence Permit in Cyprus
Legal safeguards for lessees
Your contract must be in writing and deposited at the District Land Registry Office within 60 days of signing. This protects your rights to the property and provides additional safeguards.
When the title deed is issued, a certificate of lease will be registered in your name and recorded in the government archives.
As the owner of a certificate of lease from the Land Registry Office you are protected by any adverse possession right. You create a charge over the land as soon as you submit your contract to the Land Registry Office.
Only leases with a duration of 15 years or more can be registered in accordance to the provisions of the relevant legislation. (new paragraph) For a lease to be registered, you must comply with the following conditions:
(a) The duration of the lease, with any prolongation or renewal periods taken into account, must not be less than 15 years.
(b) The lease agreement must be in writing, signed by the lessor and the lessee in the presence of two witnesses.
(c) The lease agreement must contain an express provision allowing its registration.
(d) The property under lease must be free from any encumbrance. If it is charged by an encumbrance, the consent of the person in whose favour the encumbrance exists must be sought.
(e) You must submit your application in the prescribed form together with the lease agreement duly stamped, a certificate of registration of the property, a copy of the cadastral survey plan of the property and any other documents that may be requested by the Director of Lands and Surveys.
Permission to lease property
If you are an EU citizen with permanent residency in Cyprus, you do not require permission to lease property.
If you are a non-EU citizen or an EU citizen who is not resident in Cyprus, you must submit a written application for permission to the Cyprus Government’s Council of Ministers within 90 days of signing your contract. However, permission is generally granted as a matter of routine to all bona fide lessees. You can take possession of your property without restrictions before permission is granted, but unless you receive the necessary permission from the Council of Ministers, you will not enjoy the protection given to a lessee who has registered a certificate of
lease in his name.
You should deposit the lease contract to the land registry irrespective of whether you have permission or not, so as to at least protect your contract rights on the land.
Financing the lease of your property
You can secure attractive terms for financing the lease of your property through a number of schemes negotiated by Limassol Marina Ltd with Cypriot banks. Alternatively, you can arrange financing with any other banking institution in Cyprus or abroad.
The legal fees for a local lawyer with experience in immovable property law are calculated as a % on the value of the contract with a minimum fee of €1500. Legal fees are payable on signing your contract. If you do not have a lawyer, we can refer you to a number of independent professionals with expert knowledge of the Cypriot property market.
Property duties & other costs
On signing your contract or within a month of its signature, stamp duty is payable at the rate of:
The first €5,000 0
€5,001 - €170,000 0,15%
More than €170,000 0,2%
Transfer fees are payable when the title deeds are issued and the certificate of lease is registered in your name. For the registration to proceed, you must have obtained permission to lease your property from the Council of Ministers.
There is no VAT payable on lease agreements under current legislation.
Capital Gains Tax
Properties in Cyprus are subject to capital gains tax at the rate of 20% on the gain from sale. However, the first €17,086.01 of gain are tax-exempt for individual owners, while couples who own a property jointly are exempt from paying tax on the first €34,172.03.
If you wish to sub-lease your property, and have used the property as your residence for at least 5 years prior to the sub-lease, then you are exempt from paying tax on the first €85,430.07 of the gain from the sub-lease.
All exemptions are granted only once in the lifetime of each individual. Should you decide to sub-lease your property to a third party, Cyprus law allows you to transfer the full amount of any payment made in foreign exchange to overseas destinations at the time of sub-lease, subject to the payment of capital gains tax. The equivalent of the full lease price paid by the lessee and any increase in the value of the property may be transferred immediately.
Annual property fees & taxes
Immovable Property Ownership Tax
As from the delivery date the lessee of a property, is required to pay an annual Immovable Property Ownership Tax (IPOT) to the Inland Revenue Department. This is calculated on a percentage scale according to the estimated market value of the property as of 1st of January 1980, and is payable by the 30th of September of each year.
The rates used for calculating IPOT are as follows: