Housing Finance Policy

    Text bolded/green below shows notes and variable definitions when you roll over. If you cannot see the notes, please download an Excel version from the Research Center, which includes notes. Also, a PDF featuring variable definitions is available in the document list under "Definition of Hofinet Variables".

     

    A. Legal and Regulatory Framework

    A.1 Legal and Regulatory Framework
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Basis of the legal system: Civil, Common, Islamic, Other? (Describe)Mixed system of English common law and civil law with European law supremacyMixed system of English common law and civil law with European law supremacyMixed system of English common law and civil law with European law supremacyA.1.1
    Are there specific laws that deal with mortgages? YesYesYes
    Research
    		A.1.2
    Registration/Transfer of titles:A.1.3
    Does the law clearly define different types of property rights?YesYesYes
    Cyprus Law Digest, -cyprus-land-registry, -private-ownership, -restrictions, -acquisitive-prescription, -trusts-registration, -etc
    		A.1.3.1
     Are property rights easily transferable?YesYesYes
    Cyprus Law Digest, -cyprus-land-registry, -private-ownership, -restrictions, -acquisitive-prescription, -trusts-registration, -etc
    		A.1.3.2
    Typical number of days needed for the transfer of title9921
    WDI
    		A.1.3.4
    Are there legal constraints on mortgage features?YesYesYesA.1.6
    Loan-to-Value capYesYesYesA.1.6.2
    Are there consumer rights for mortgage lending? YesYesYesA.1.7
    Is there specialized legislation covering:A.1.9
    B. Housing Finance Subsidies
    B.1 Subsidies to Housing Finance Institutions
    B.2 Subsidies to Households
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    Are there subsidies to households on housing finance?Yes  
    Research
    		B.2.1
    Interest rate subsidies by special government fundsYes  B.2.1.1
    Subsidies to savings for mortgage loansYes  B.2.1.4
    Reach of subsidies in 2.1.1 to 2.1.4 ?B.2.2
    C. Taxation
    VariableEnd of 2015End of 2014End of 2013SourcesVar ID
    What taxes apply to Residential Real Estate?C.1
    Tax on property (home-owners) Yes  C.1.1
    Property transaction taxes (purchase/selling)Yes  C.1.2
    Tax on capital gains on property Yes  C.1.5
    OtherYes  C.1.6
    Are there tax benefits on rental properties?Yes  C.2
    back to top | Country Data:
    Notes:
    Notes:
    Notes: 2010 = 100
    Notes: 2010 = 100
    Notes: A 20% deduction of gross rental income is allowed
    Notes: A mortgage subsidy scheme was approved in June 2015. This program subsidizes the interest of mortgage loans for primary residences. The program is funded by the Land Development Corporation
    Notes: Capital gains are levied at a rate of 20%. Capital gains is defined as gross selling price minus acquisition costs and improvement costs. All taxpayers qualify for a one-time exemption from capital gains. For a home that the owner occupied for at least five years, this exemption amount is 85,430 Euros.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Converted to USD using IMF end-of-year exchange rate.
    Notes: Figure is for national percentage.
    Notes: Figure is the national percentage. Data drawn from "Distribution of population by tenure status, type of household and income group Table (source: SILC) [ilc_lvho02]"
    Notes: Figure is the national percentage. Data drawn from "Distribution of population by tenure status, type of household and income group Table (source: SILC) [ilc_lvho02]"
    Notes: Figure is the national percentage. Data drawn from "Distribution of population by tenure status, type of household and income group Table (source: SILC) [ilc_lvho02]"
    Notes: Figure is the national percentage. Data drawn from "Distribution of population by tenure status, type of household and income group Table (source: SILC) [ilc_lvho02]"
    Notes: Figure is the national percentage. Data drawn from "Distribution of population by tenure status, type of household and income group Table (source: SILC) [ilc_lvho02]"
    Notes: LTV ratio not to exceed 80%
    Notes: LTV ratio not to exceed 80%
    Notes: LTV ratio not to exceed 80%
    Notes: LTV ratio not to exceed 80%
    Notes: Mean annual average % change in nominal house prices
    Notes: Mean annual average % change in nominal house prices
    Notes: Mean annual average % change in nominal house prices
    Notes: Mean annual average % change in nominal house prices
    Notes: Mean annual average % change in nominal house prices
    Notes: Mean annual average % change in nominal house prices
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Owner occupied units as a whole
    Notes: Real estate tax is levied at a progressive rate depending on the value of the home. The rate ranges from 0.6-1.9%
    Notes: Rental income tax is levied at a progressive rate that ranges from 0-35%. The amount subject to taxation is 80% of the rental income
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The Cyprus Consumers Organization was established in 1973
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The First Cyprus Credit Bureau registered in 2008 and was the first credit reference agency in Cyprus
    Notes: The Hellenic Bank is the second largest bank in the Cyprus
    Notes: The Housing Finance Corporation provides savings accounts for low income families in which 40% of deposits are tax deductible, as well as any interest earned.
    Notes: The Housing Finance Corporation provides savings accounts for low income families in which 40% of deposits are tax deductible, as well as any interest earned.
    Notes: Transfer fees are paid by the acquirer. The rate ranges from 3-8% and depends on the value of the home