The sale price gets finally established in the negotiation process between the buyer and the seller.

Once the sale price has been agreed on, the buyer is obliged to make a down-payment of 1% of this price. This amount is held by an appointed solicitor until the contracts are signed. This down-payment represents a guarantee for both the buyer and the seller.

It is the responsibility of the seller to arrange an appointment with the solicitor as soon as the 1% deposit has been made. The appointed solicitor will then draw up the contracts.

Capital Gains Tax

On Disposal of the property a Capital Gains Tax of 20% is paid on the gain with the first CY£10,000 being exempt for each person.

The seller is entitled to a further allowance on:

Transfer fees paid

Inflation rate per year

Cost of any additions and alterations

Marketing fees paid

If the owner resides in the property continuously for at least five years before selling the property and for the five year period more than six months every year then the seller is exempt CYP 50,000 in total for Gains from the disposal of the property.