buying in cyprus

Cyprus Law on Properties

Buying a property in Cyprus is very easy since as a non-Cypriot you are entitled to buy a freehold property, either an apartment, house, villa or a piece of land that does not exceed 4000sq meters

Note: All properties in Cyprus are freehold.

Transfer of property and costs

The transfer of the Title of Ownership is a simple procedure done at the Land Registry Office and also the issuing of a Title Deed after completion and delivery of the property.

Our company assists to do this. In case of a foreigner there must be evidence that the property has been paid with any Foreign Exchange. To buy property in Cyprus an approval is needed by the Council of Ministers for the Purchaser’s application.

However, the purchaser should pay the transfer fees which are payable to the Land Registry Office before the issuing of the Title Deed of the property. The transfer fees are shown in the following table:

Property Value CYP	Transfer Fees %	Accumalated Transfer Fees CYP
0 - 50,000	3	1500
50,001 - 100,000	5	4000
100,000 and over	8	-

Other Expenses for the purchase of a property

If a local lawyer is hired the fees are CYP £ 500.

Annual Immovable Property tax

If a person has properties registered in his name, of a market value that exceeds CYP £100,000 there is a Property Tax on the excess value. The Annual Immovable Property tax is imposed by the government and is levied on the market value of the property as of 1st January 1980 at the following rates:

Property Value CYP	Property Rates Per/Thousand	Cumulative Property Tax CYP
0 – 100,000	0	0
100,001 – 250,000	2	300
250,001 – 500,000	3	1050
500,001 and over	3.5	-

Duty Free Privileges

Europeans who become permanent residents in Cyprus and were using in their country a car for at least six months, can bring their car to Cyprus and they will not pay import tax.

Furniture can be imported free of any taxes by Europeans or Non-Europeans who become permanent residents provided that they are for personal use and are not brand new.

Medical services and Private Health Insurance Schemes

Cyprus has a very high standard of medical services. Hospitals, private clinics and medical centres are equipped with the latest facilities.

Many Cypriot doctors of various faculties jointly run polyclinics whose standard is comparable to other highly developed countries.

Doctors, dentists, specialists and general practitioners, are widely available and their costs are quite low compared to European standards.

Health Insurance is available at reasonable costs.

Property Insurance

Insurance is varied depending on the value of the property at reasonable costs.

Property Resale and Procedure

You can sell the property at any time without any restriction. The equivalent of the full purchased price can be forwarded immediately. Any profit may be taken out of Cyprus at the rate of CYP £10,000, plus interest, per annum beginning the year after the sale.

Property sales in Cyprus are subject to Capital Gains Tax at a rate of 20%, however the first CYP £10,000 is exempt.

Temporary Residence

Temporary Residence is easily obtained once the applicant follows certain requirements. An appointment to the Immigration Department must be arranged, taking the following documents:

• Bank Statement
• Letter of Guaranty from your bank of CYP £300
• Sales Contract
• Three passport size photos
• Passport
  

Note: Application Fee of CYP £2

Pension Regulations

Foreign residents are required to declare any income from pensions and are taxed on a flat basis of 5% per annum on pensions and investment income brought to Cyprus.

Company’s Services

• The purchase of household furnishings and appliances
• Vehicle purchasing or rental
• Insurance Policies for House and Contents, Life, Medical and Vehicles cover.
• Cleaning, Gardening and Swimming Pool Maintenance

Mortgage Finance

Most commercial banks in Cyprus are authorized to offer mortgage facilities to local as well as foreign applicants to assist in the purchase of their property.

General Information

The loan can be granted in Foreign Currency or in Cyprus Pounds.

It is advisable that the loan is in the currency that the applicant receives his income, so that there is no exposure in any exchange risk during the repayment period.

For a loan in Foreign Currency the maximum repayment period can be 15 years.

For a loan in Cyprus Pounds the maximum repayment period can be 25 years.

The maximum loan amount will be 60% of the value of the purchased property. In exceptional cases the amount can be 70% of the value of the purchased property (depending on the credit rating of the customer).

The loan is repaid by monthly instalments.