Cyprus Property Forum for Buyers, Sellers & Investors

Hi,
I am glad to be in this forum for the first time.

I am Canadian, planning to buy an apartment in Cyprus, probably Larnaca and rent it out.

Is there going to be any income tax?

What is the average expected annual property tax for an apartment?
If I want a decent property management office to take care of the apartment (maintenance, follow up payments, ...) do you recommend anyone or more than one? how much money the property management can cost me?

Best Regards,

Hussam

Hi Hussam and welcome to the forum.

I hope you're looking to rent the apartment long term rather than relying on the vagaries of the tourist market. Although the weekly rent you achieve will be lower, you will be unaffected by the vagaries of the tourist market when many holiday homes are empty and you will avoid having to get someone prepare the place for new holidaymakers between rentals.

In either case you will have to pay tax on any income you receive from letting. The tax liabilities are described in Tax treatment of Rental Income.

Some local authorities also tax landlords on the rental income they receive. Currently there are few that do this and I don't have any information.

You will also be liable to pay a local property tax, sewerage charges and refuse collection and lighting. I expect these will be no more than €250/annum.

As for property management. If the apartment complex has shared facilities such as a swimming pool, entrance hall, stairwell, etc. then you will need to contribute to the costs of insurance, maintenance and repair of the shared facilities. The charges will vary depending on what common facilities are provided and you'll need to speak with the Management Committee to see what the charges may be.

I can't help you with rental agents, but if you ask on the Eastern Forum, someone with local knowledge should be able to help.

Regards