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Legal
Information
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Buying Property in Cyprus
Compared to many countries
buying property in Cyprus is very easy.
- EU citizens who have
their permanent residence in Cyprus.
Under the legislation in Cyprus, Cypriot nationals as
well as EU citizens who have their permanent residence in
Cyprus are enabled to buy property in Cyprus without any
restrictions. For permanent residence you must reside in
Cyprus for at least 185 days in a calendar year.
-Non EU citizens or EU
citizens who do not have their permanent residence in
Cyprus
Non EU citizens or EU citizens who do not have their permanent
residence in Cyprus, who wish to buy property in Cyprus,
are required to adhere to local regulations and formalities.
Non EU citizens or EU citizens, who are not permanent
residents of Cyprus, can only buy one apartment or house.
In the case where the buyer is an EU citizen, the property
size is unrestricted, if the buyer is a non EU citizen,
then the property size is restricted to 4,014 square meters.
The restrictions applied to EU citizens will be abolished
as of 2009, which will bring about equality of EU citizens
and Cypriot nationals regardless of their residential
status.
Prices and terms of payment
Prices depend on size,
location and specifications, for more information please
contact our Sales Department.
Banks can offer mortgage facilities in connection with
the purchase of the property. The maximum amount that
can be borrowed is the equivalent of 80% of the purchase
price. A first mortgage will be required and the mortgage
will be granted until you reach the age of 70 or for a
maximum period of 30 years.
Double taxation relief
agreement
Agreements exist with
most countries of the European Union, as well as other
countries throughout the world. These are listed below.
Cyprus Double Taxation Treaties exist with:
Austria, Greece, Romania, Bulgaria, Hungary, Russia ,Canada,
India, Slovakia, China, Ireland, Sweden, Czech Republic,
Italy, Syria ,Denmark, Kuwait, United States, France,
Norway, Yugoslavia ,Germany, Poland
N.B Out of the 26 treaties
concluded by Cyprus, only 4 countries (Canada, France,
UK and USA) have exclusions regarding Cyprus offshore
entities. However, even these treaties can be used advantageously
with some creative and careful tax planning.
Pension subject to taxation
According to our tax
system, you are obliged to declare your income from pensions
to the tax authorities. There are two methods of choosing
how your pension will be taxed. These are outlined below:
1st Method:
Euros 0-3,417 0%
Euros 3,417 and above 5% flat rate
2nd Method:
Euros 0-10,251 0%
Euros 10,251-15,377 20%-
Euros 15,377-20,503 30%
Euros 20,503 and above 40% flat rate
These methods are based
on cash transfers to Cyprus.
Property Taxes and
Fees
Transfer of ownership
takes place by a simple process of registration at the
Land Registry Office and the issuing of a title deed after
completion and delivery. This can be done either by a
Power of Attorney to your Solicitor.
A prerequisite for registration, in the case of non-Cypriots,
is evidence that the property has been paid for with foreign
exchange and approval by the Council of Ministers of Purchasers
application to buy property in Cyprus.
Before the registration of the completed property the
purchaser should pay the transfer fees, which are payable
to the Land Registry office.
The transfer fees range is shown on the following table:
Property Value Euros
Transfer Fees Accumulated Transfer Fees %
1.71 - 85,430 @ 3%
85,430 - 170,860 @ 5%
170,860 and above @ 8%
If the property is in
joint names, the value of the property can be split and
considerable savings made
The Expenses when buying
a property in Cyprus
In Cyprus there are no
rates as known in most countries in Europe. If a person
has properties registered in his/her name where the market
value exceeds 170,860 Euros, there is a property tax on
the excess value.
The annual immovable property ownership tax imposed by
the government is levied on the market value of the property
as of 1st January 1980 at the following rate:
Purchase Price % Payable
Cumulative Property Tax
Euros 1.71 - 170,860 @ 0%
Euros 170,860 - 427,150 @ 2.0%
Euros 427,150 - 854,300 @ 3.0%
Euros 854,300 and above @ 3.5%
The owner apart from
the expenses of telephone, water and electricity for which
there are separate meters, has to meet a proportion of
the common expenses e.g. for the lights, cleaning of the
common facilities and the maintenance of the lift (and
of course the upkeep of a garden and a swimming pool where
there is one).
Common expenses are comparatively insignificant and the
administration can be arranged by a clients committee.
Duty Free Privileges
These differ and the
level of duty free privileges will depend, on your circumstances.
As a guide, personal effects, household goods and furniture
can be imported free of any taxes by immigrant retirees,
provided they are for personal use and have been used
for a reasonable amount of time - approximately one year,
you may have to pay port duties for some large electrical
goods but the amount is very minimal.
Bringing vehicles into
Cyprus you will have to pay port fees and import tax also
you will have to arrange with customs to have the vehicle
re-registered with Cypriot plates within six months. This
can be done through an agent and the costs depend on the
size of the engine.
The procedure for obtaining
residence in Cyprus
Residence is easily obtained after the fulfillment of
certain immigration requirements. Application forms are
available from any of the local immigration offices.
On completion of these forms, they should be returned
to the immigration office with the following supporting
documentation:
- A signed and stamped statement from a local bank confirming
that the applicant holds an account with that bank. This
document should also indicate the current account balance.
- Passport
- Two passport photographs
- Processing Fee (application processing fee)
- A copy of a sales contract, or a rental agreement.
- Marriage Certificate
- Birth certificates for any children
You will need to take with you photo copies of all the
above and it is a good idea to make an appointment.
Insurance on Property
There are many companies who will issue insurance cover
to include fire and earthquake damage.
Health Insurance Schemes
in Cyprus
There are several companies who operate schemes here.
The level of cost depends to a very large extent on the
following factors:-
Your age, medical condition and level of cover required.
International Schools in Cyprus
All major towns have reputable international schools.
These schools offer diplomas equivalent to GCE\s for entry
into British universities, and achieve high academic standards.
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