Property Maintenance Costs in Cyprus

Cyprus attracts many property buyers with its mild climate, beautiful beaches, and favorable tax system. Owning property in Cyprus can be highly advantageous, but it’s important to understand the associated costs. Here, we will examine the key aspects of property maintenance on this Mediterranean island.

Utilities

Electricity Bills in Cyprus

Electricity bills in Cyprus represent a significant part of property maintenance expenses. These costs can vary depending on the size of the property, the amount of energy consumed, and the season.

Key Aspects

Frequency and Payment Structure

1. Payment Frequency: Electricity bills are issued every two months. Timely payment is necessary to avoid power disconnection.
2. Payment Structure: Electricity tariffs include a fixed part and a variable part, depending on the amount of consumption.

Average Monthly Expenses

• One-Bedroom Apartment: Approximately €80 per month, including the use of air conditioning, lighting, and appliances.
• Average House: Can reach €150-200 per month, depending on the number of electrical appliances used and the heating system.

Ways to Save

1. Energy-Efficient Appliances: Replacing old household appliances with modern energy-efficient models can significantly reduce electricity consumption.
2. Solar Panels: Solar panels can help reduce electricity costs, especially in the summer months when solar activity is high.
3. Smart Thermostats and Management Systems: These allow for optimized energy consumption and more efficient control of home heating and cooling.

Energy Consumption

1. Air Conditioners: The use of air conditioners significantly increases electricity bills during the summer months due to high average temperatures in Cyprus.
2. Heating: In winter, electric heaters are often used, adding to the expenses.

Additional Costs

• Water Heaters: Cyprus lacks centralized hot water supply, so electric water heaters are used, increasing electricity bills.
• Electric Stoves and Ovens: Due to the absence of centralized gas supply, homes often use electric stoves and ovens, further increasing electricity consumption.

Average Expenses

Average Electricity Costs: For a one-bedroom apartment, average monthly electricity costs are around €80. For larger houses and villas, these costs can be significantly higher.

Tariff Structure

Electricity in Cyprus is paid according to a progressive system, where tariffs increase with higher consumption. Examples of tariffs for 2024:

• • 0–250 kWh per month: €0.2240 per kWh
  • 251–500 kWh per month: €0.3720 per kWh
  • 501–750 kWh per month: €0.4240 per kWh
  • 751–1000 kWh per month: €0.4720 per kWh
  • Over 1000 kWh per month: €0.5120 per kWh

These tariffs include VAT and may change depending on legislative updates and market electricity prices.

Water Bills in Cyprus

Key Aspects of Water Supply

Water is a valuable resource in Cyprus, and water bills are calculated based on consumption volume. Water expenses can vary depending on the season and usage level.

1. Payment Structure

Fixed Part: Cyprus has a basic fixed tariff, charged regardless of consumption volume.

Progressive Tariff Structure: The cost of water increases with higher consumption. The more water used, the higher the tariff for each subsequent volume.

2. Average Expenses

Typical Costs: The average monthly water bill ranges from €22 to €40, depending on family size and water usage.

Monthly Variations: Bills may be higher in the summer months due to increased water consumption for garden irrigation and pool use.

3. Lack of Centralized Hot Water Supply

Cyprus lacks centralized hot water supply, requiring the use of electric water heaters, adding to electricity expenses.

Examples of Tariffs

Initial Tariff: The first part of water consumption is charged at a lower rate.

Progressive Tariffs: As consumption increases, the cost per cubic meter of water rises. For example, the initial rate may be €0.50 per cubic meter, increasing to €1.50 per cubic meter after a certain threshold.

4. Payment and Consumption Monitoring

1. Payment Deadlines: Water bills are typically issued quarterly.
2. Consumption Monitoring: Regularly check water consumption to avoid unexpected high bills. Installing water-saving systems can help reduce expenses.

Examples of Water Bills

• Low Consumption (Single Occupant): €20-25 per month.
• Average Consumption (Family of 3-4): €30-35 per month.
• High Consumption (Family with Pool and Garden): €40-50 per month or more.

Additional Services and Fees

• Sewage and Wastewater Fees: Some areas charge additional fees for sewage and wastewater treatment services.
• Service Fees: Some municipalities may include small fees for maintaining the water supply system and repairs.

Water bills in Cyprus can be significant, especially in the summer months when water consumption increases. Understanding the tariff structure and regularly monitoring consumption can help manage these expenses effectively.

Gas

There is no central gas supply in Cyprus, and residents use gas cylinders, which cost about €10-20 per refill. One cylinder lasts for 2-3 months, making the use of electric stoves and ovens more popular.

Heating

Despite the warm climate, it can be quite chilly in Cyprus during winter, and property owners use electric heaters or air conditioners for heating.

Taxes and Fees

Municipal Tax

Since 2017, the property tax has been abolished, but property owners must pay an annual municipal tax, which is 0.1%-0.2% of the market value of the property. These funds are used to maintain local infrastructure, including street lighting, garbage collection, and sewer maintenance.

Rental Income Tax

Rental income from property in Cyprus is subject to a progressive tax scale ranging from 0% to 35% depending on the income amount. For long-term rentals, tenants usually pay utility bills and other expenses, while short-term rentals may incur additional management and maintenance costs for owners.

Capital Gains Tax

When selling property, owners are required to pay a capital gains tax of 20% on the profit. However, certain exemptions exist, including a tax-free allowance of the first €17,086 of profit.

 

Owning property in Cyprus involves various expenses related to utilities, fees, and taxes. Understanding these aspects will help potential buyers plan their expenses effectively and maximize their investment benefits. It is recommended to consult our real estate experts for more detailed information and assistance in managing your property.