1. SOLICITORS
It is advisable to consult a solicitor before proceeding to purchase your preferred property. If you do not have one, we would be happy to recommend a reputable independant legal advisor. His duty would be to oversee the details and handle the various documentation and procedures until the property is officially transferred to you name.
2. PROPERTY PURCHASE & OWNERSHIP COSTS
2.1. PURCHASING COSTS
| Solicitor’s Fees |
|
Between €1,400 – €2,500 |
| Search Fees |
|
Included in the above |
| Property Transfer Fees |
|
See Below |
| Stamp Duty Fees |
|
See Below |
2.2. PROPERTY TRANSFER FEES
This covers the actual transfer of FREEHOLD ownership to your name and is due when the property is registered in your name at the Land Registry Office. This process is done following the Council of Minister’ approval.
The Property Transfer Fees are a once only payable expense to the Land Registry Office based on the following scale (excluding VAT):
| Value of Property in € |
|
Transfer fee Rate (%) |
| |
|
|
| Up to 85.430 |
|
3 |
| From 85.431 to 170.860 |
|
5 |
| From 170.861 and over |
|
8 |
2.3. IMMOVABLE PROPERTY TAXES
The registered owner of the property is liable for this annual tax which is based on the total value of the said property.
| Value in € |
|
Annual Tax Per Thousand in € |
| |
|
|
| Up to 170,000 |
|
Exempt |
| 170.001,- to 427.000 |
|
0,25 |
| 427.001,- to 854.000 |
|
0,35 |
| 854.000,- and over |
|
0,4 |
2.4. CAPITAL GAINS TAX
Capital Gains Tax is levied at 20% on gains arising from the disposal of the property. However, for foreign owned property that is sold, generous allowances and exemptions from Capital Gains Tax exist. As the gain also takes into account inflation, the actual appreciation coupled with the allowances and exemptions results in a minimal taxable amount.
2.5. SELLING YOUR PROPERTY
When you sell, you can repatriate all of the funds immediately used to the value of the purchase, including any amounts spent on improvements and/or additions to the property and paid for in properly imported foreign currency.
2.6. STAMP DUTY
The purchaser is liable for the payment of Stamp Duty at the rate of €2.56 per thousand up to the value of 170.860,- and, thereafter, at the rate of € 3.41 per thousand. This duty should be paid within 15 days of the signing of the contract.
2.7. MORTGAGE FEES
There is a registration fee of 1% of the amount secured, plus any relevant stamps. Local banks grant loans in the local currency as well as the foreign currency of your choice. Alternatively you can apply for a loan from your own private bank abroad.
3. ON - GOING COSTS
3.1. PROPERTY OWNER COSTS (Approx. Average)
a) Electricity, depending on consumption: € 140.00,- 220,- every 2 months.
b) Water, depending on consumption: € 25,- 50,- every 4 months.
c) Sewerage, depending upon household: 95,- per annum.
d) Common expenses for apartments: Euros 170,- to 850,- per annum.
(Prices vary depending on location and complex or building.)
3.2. TAXATION
In the past, double taxation treaties existed with various European countries, which regulated taxation matters regarding residents on the Island. Today, most of these treaties have fallen away. Unless you are retired and have an income solely from external funds, it is up to you to register with the Inland Revenue stating your income and its origin and they will advise you of any applicable restrictions and regulations.
3.3. ESTATE DUTY
Estate Duty was abolished as from 1st January 2000.
3.4. VAT
As from May 2004, VAT of 15% is applied to all purchases of all new build properties. | 
