Table of Contents
Personal or Through the Company?
One of the most common CMC questions. Both have clear pros and cons. Right choice depends on use (own use vs rental vs investment), total assets and long-term strategy.
Personal Purchase – Pros
5% VAT rule: first primary residence (saves ~€42,000 on €300,000). CGT exemption: €85,430 for self-occupied. Simplicity: no audit, no Ltd admin costs. Easier bank financing.
This was exactly our experience: Personal Purchase – Pros 5% VAT rule: first primary residence (saves ~€42,000 on €300,000). CGT exemption: €85,430 for self-occupied.
– Entrepreneur from Freiburg, in Nicosia since 2022
Ltd Purchase – Pros
15% CIT on rental income (vs up to 35% income tax). 3%/year depreciation. All costs deductible. Share transfer instead of property (saves Transfer Fees). Limited liability.
CMC Recommendation
Primary residence: personal (5% VAT + CGT exemption). Investment property: Ltd (15% CIT + depreciation). From ~€300,000 and €15,000+ rental income: Ltd usually better. Always calculate with CMC BEFORE buying.
Buying Property Through a Limited Company
Topics: Personal or Through the Company?, Personal Purchase – Pros, Ltd Purchase – Pros
CMC Practical Tip
Personal Purchase – Pros 5% VAT rule: first primary residence (saves ~€42,000 on €300,000).
Frequently Asked Questions
Primary residence: personal. Investment: Ltd. CMC calculates individually.
First primary residence, new build, up to €350,000: 5% instead of 19%. Saves ~€42,000. Personal only, not Ltd.
Yes but expensive (Transfer Fees, CGT). Better: plan ahead.
Bookkeeping, audit, annual return: ~€1,500-2,500/year. Offset by tax savings from €15,000+ rental income.
How CMC Supports You
At CMC Certus Management Consultants, we are here for you – not only for tax and legal questions, but also for all practical topics of everyday life in Cyprus. Our team in Larnaca and Pafos knows the local conditions first-hand.
As your local contact, we handle: company formation and management, tax advisory and Non-Dom applications, ongoing bookkeeping and tax returns, support with authorities, and referrals to estate agents, lawyers, doctors and tradespeople.