How much does it cost to maintain a property in Cyprus? What are the specific categories and fees?

Cyprus property maintenance costs

Although the Cyprus passport project is suspended, some potential property buyers have had to abandon their purchase plans. However, the Cyprus permanent residence project still requires applicants to purchase a certain amount of real estate. It should be noted that Cyprus real estate not only requires certain additional fees when purchasing, but also requires money for daily maintenance after holding it. So, what are the specific maintenance categories and related costs? Maintenance costs in Cyprus are quite low compared to the average costs in Europe. Owners pay approximately 1,300-1,700 euros per year for an apartment and 2,000-3,000 euros for a villa with private swimming pool.

Taxes

Effective January 1, 2017, real estate ownership tax will be cancelled. Starting from 2017, owners in Cyprus will also need to pay municipal tax every year. Municipal tax is calculated based on the market value of the property, and the fee ranges from 0.1%-0.2%. Rental income is subject to 0-35% income tax, and property sales are subject to 20% capital gains tax.

Utilities

In general, the electricity bill in Cyprus is relatively high, because the utilization rate of natural gas on the island is not high, and many heating equipment rely on electricity, so the overall cost is higher a lot of. The cost of water, electricity, heating and other utilities for a one-bedroom apartment is about 150 euros per month. The buyer needs to pay a monthly electricity bill of 80 euros. Commonly used cylinders in Cyprus cost 10-20 euros, with refills costing 10 euros. Monthly water bills range from 22 to 40 euros. Depending on the size of the property, local authorities charge between €85 and €500 per year for regular rubbish collection, street lighting, sewerage and similar community services. Municipal service charges are payable to the municipality where the property is located.

Insurance

As Cyprus is susceptible to earthquakes, winter heavy rains and summer fires, it is recommended to insure Cyprus real estate. Homes can also be insured against theft, vandalism and falling trees. There is an insurance premium of 1.5-2 euros per 1,000 euros of property value. In general, property maintenance costs in Cyprus are relatively low compared to other European countries, and the holding costs are not high, especially in terms of taxes. Not only are there fewer taxes to pay, but the tax rates are also relatively low.