Cyprus- FAQ's
1. As a non-Cypriot, what I am entitled to buy?
Compared to many countries buying property in Cyprus is very easy. As a non-Cypriot you are entitled to buy a freehold property either:
- An apartment or a house for your own use
- A villa (the regulations permit the choice of villa on a building plot not exceeding 4000 sq. m)
- A piece of land not exceeding 4000 sq. m for the purpose of erecting a house within a reasonable time frame.
2. What are the prices and terms of payment?
Prices depend on size, location and specifications. Our Sales Department will provide advice on these matters. Banks are able to offer a maximum 10-year mortgage facility for property purchases. A maximum of 70 % of the purchase price is available but cannot be met in Cyprus Pounds. The interest rate at present is 2,5 % above Sterling Rate or Dollar Prime Rate. There is also an additional arrangement fee of 1 %, which is payable on the amount of the advance.
3. Is the property freehold or leasehold?
It is Freehold. The system of Leasehold is almost unknown in Cyprus.
4. How does the transfer of the property take place? How and at what cost do I get possession of the title?
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 may be done either by yourself or by a Power of Attorney to your Lawyer. A prerequisite for registration, in the case of a non-Cypriot is evidence that the property has been paid for with Foreign Exchange. Approval is also needed by the Council of Ministers of the Purchaser's application to buy property in Cyprus. These formalities are taken up by our company on behalf of our clients, free of charge, as part of the agreement. However, on issuing the Title Deed of the property the purchaser should pay the transfer fees, which are payable to the Land Registry Office. E.g. for a property valued Cy 50.000 the purchaser should pay Cy 1.500 and for Cy 100.000 the amount of Cy 4.000.
5. Are there any fees payable(s) over and above the price of the property for Legal/Agency work/Stamp Duty?
Normally there are no Agency fees and no Legal fees as the standard legal work is performed by our Legal Department without any extra charge. If a local lawyer is employed the fees are most reasonable. In order to avoid the payment of a fine, the Purchase Contract must be stamped within 30 days from the date of its signing at the rate of 1.5 per thousand up to Cy 100.000 and thereafter at the rate of 2.0 per thousand.
6. What expenses does owner of a Property have to meet? What is the tenant's share?
In Cyprus there are no rates as known in most European Countries. If a person has properties registered on his name, the market value of which exceeds Cy 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.
Apart from the expenses of telephone water and electricity, (for the last two there are separate meters), the owner has to meet a proportion of the common expenses. This is in relation to the cost of lighting and cleaning of the common areas and maintenance of grounds and swimming pool. Common expenses are comparatively inexpensive. For a 2-b/m apartment they would not normally exceed an average monthly cost of Cy 25. Common expenses administration may be dealt with by our Customer Service Department or by the formation of an Owners' Committee.
7. What duty free items are allowed for the non-Cypriots living in Cyprus?
Household goods, furniture and personal effects can be imported free of any taxes by overseas retirees, provided they are for their own personal use and have been used for a reasonable amount of time - approximately one year. There are no import duties on cars and for retired couples there is an additional concession of two duty free cars.
8. Are there health insurance schemes available?
Yes, there are health insurance schemes at a very reasonable cost, depending on age, state of health and the level of insurance taken out.
9. Are there reputable international schools in Cyprus?
Yes, in all towns. In Pafos there is a well-established school with a record of high academic achievement offering education to British university entry level.
10. Can I sell the property easily? Will I be able to take the proceeds of sale out of Cyprus?
You can sell the property at any time and with no restrictions, either through our office or by other means. The equivalent of the full contract price can be remitted immediately, any profit may be taken out of Cyprus at the rate of Cy 10.000 plus interest, per annum, commencing the year after the sale. Property sales in Cyprus are subject to Capital Gain Tax at a rate of 20 %. However the first Cy 10.000 is exempt.
11. How do we go about getting Temporary Residence?
Temporary residence is easily obtained once the applicant fulfils certain requirements. A visit to the Immigration Department must be arranged, taking the following documents:
- Sales Contract
- Bank Statement
- Three passport size photos
- Passport
- Application fee of Cy 20
- Letter of guarantee of Cy 300 obtained from your Bank in Cyprus
This does not apply for EU member countries effective from 1st of May 2004.
12. Is the Pension subject to Taxation?
Yes it is. According to our tax system you are obliged to declare your income from Pension. Non-Cypriot residents are taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus from abroad. In some circumstances, exemptions totalling up to Cy 4.000 per person or Cy 8.000 per married couple may apply.