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.