Buying Property in Cyprus

WHY CHOOSE CYPRUS

1. The cost of living is much lower than at the most European countries.
2. Cyprus is a full member of the E.U, a member of the UN, of the Council of Europe, of the British Commonwealth and also a member of the Non-Aligned Movement.
3. The land registry office is one of the most advanced in the world. Cyprus has advanced medical care.
4. Almost everybody is insured cheaper and better rates and service.
5. The telecommunication Authority is one of the most technologically advanced companies in the world!
6. Around 30 airlines connect Cyprus directly with most European and Middle East countries, from two international airports at Larnaca and Paphos.
7. English is the second language and ninety percent of Cypriots speak it fluently.
8. The sun shines for approximately 11 months of the year and Cyprus is one of few countries in the world where you can enjoy both swimming and skiing all in one day!
9. For the lovers of antiquity Cyprus provides the pleasure of visiting and studying a great many archeological remains and museums.

Living in Cyprus provides you with the gift of enjoying the facilities of the modern societies married to the tradition and ancient enchantment.

USEFUL TIPS

The currency of the Republic is the Cyprus Euro € which is divided into 100 cents.
Banks in Cyprus open for the public from 8:30 to 12:30 midday. Certain banks in tourist areas open during the afternoon.
Telecommunication: Cyprus has an automatic telephone dialing system, including ample public telephones, an excellent mobile phone facility, and speedy access to the Internet and e-mail services. Timecards can be purchased from Post Offices, kiosks, even souvenir shops. Local dialing codes: Nicosia 22, Ayia Napa 23, Limassol 25, Paralimni/Protara 23, Larnaca 24, Platres 25, Paphos 26, Polis 26. Mobile phones 99.
Shopping hours:
- Winter Period ( Nov 1- March 31 ) : Mon, Tue, Thu, Fri from 09:00 to 18:00, with a small break from 13:00 to 15:00. Wed, Sat from 09:00 to 13:00
- Summer Period (April 1- Oct 31 ) : Mon, Tue, Thu, Fri from 09:00 to 13:00, and 16:00 to19:00 and Wed, Sat from 09:00 to 14:00.
The voltage on the island is 240 socket outlets of flat 3 pins.
Lost / stolen Property must be report within 24 hours at the local police station. Insurance claims can not be supported without police report.
Driving: is on the left side of the road. Visitors must bring with them their national driving license or an International Driving Permit.

Buying a property in Cyprus

Cyprus became a full member of the EU on 1st May 2004 resulting in many changes for the EU nationals planning to purchase property in Cyprus:

In order to comply with the idea of free movement of people and goods some restrictions have been lifted. Inhabitants of EU can enter Cyprus without any restriction even with only their National identity card, provided there is a photo.
Exchange control restrictions are no longer in force and it is no longer obligatory to give a proof that property was purchased from External Funds.
Cyprus Investment Policy is liberal and allows a 100% foreign participation in every aspect of the economy, not only for the EU Nationals but even for investors from third countries; e.g the acquisition and development of land.
EU Nationals who are not residents in Cyprus are only allowed to purchase as much land as they want, however there is the restriction of buying one house or apartment, for which is required a permition from Council of Ministers.

An EU National resident in Cyprus is permitted to purchase as much property in Cyprus without any approval from any authority. In this case residency in Cyprus must be proved to the District Administration.

Stamp Duty

Before the contract is lodged in the Land Registry Office it needs to be stamped by the Tax Office. Stamp Duty is estimated as follows:

Up to Euro 170.860 the duty is 0,15%
Over Euro 170.860 the duty is 0.2%

For example purchase price of Euro 222.118 Up to Euro 170.860 the duty is EURO 256 For Euro 170.860 to 222.118 the duty is CYP 34

Total Stamp Duty is Euro 290

Transfer Fees

The purchaser will be liable to pay the following transfer fees when the property is registered in their name:

Transfer Fee Rate % on property value Up to Euro 85.430 is 3% Euro 170.860 - Euro 170.860 is 5% Over Euro 170.860 is 8%

For example: Transfer fees of a property valued at Euro 130.000 - on one name :

3% for the first Euro 85.430:::::..Euro 2.563
5% for Euro 85.431 to Euro 170.860:...Euro 4.272
8% for Euro 30.000::::::::.Euro 4.100
Total Transfer Fee:::::::::Euro 7.689

Immovable Property Tax

A person who res in Cyprus for more than 183 days a year is considered to be a resident and will be subjected to taxation on immovable property situated in Cyprus.

The rates on Euro are as follows:

Up to Euro 170.860:::::::.Zero
Euro 170.861 - Euro 427.150:::.0.25%
Euro 427.151 - Euro 854.300:::.0.35%
Over Euro 854.301:::::::..0.4%

Immovable Property Tax is paid annually.

Capital Gains Tax

From the profit you have after selling a property the first Euro 17.086 are free of tax. Capital Gains Tax is charged on the balance at the rate of 20%. If the property sold was the vendor's home for at least five years, Euro 85 tax relief can be claimed.

VAT The rate of V.A.T in Cyprus is currently 15% V.A.T on buying new property is chargeable at the rate of 5% for a property declared as the principle place of residence and 15% for secondary properties.

NO V.A.T is payable in cases where application for a Planning Permit was submitted before 1st May 2004.

Inheritance Tax

By law 74 (1) 2000, all obligations to pay Inheritance Tax were abolished, no matter the size of the estate. This fact is encouraging people to invest in the island.