Below is a comprehensive list of Frequently Asked Questions, if you can't see anything here that can answer your particular question, please drop us a line, and we will be more than happy to answer your questions. We will obviously add any questions submitted, if we deem them important, and of neutral benefit to everyone in general. Please use our feedback form below and let us know your questions.
Application to the Council of Ministers, do I need to apply?-
All non-residents must apply in writing for permission to buy property from the Cypriot Council of Ministers. Your solicitor can assist you with the application as it is more like a routine process for them and permission is granted to all genuine buyers more or less automatically.
- Can I secure a mortgage in Cyprus?
-
Yes, securing a mortgage in Cyprus can be a very simple procedure as long as you are able to contribute around 30% of the selling price and your clean yearly earnings are around two times more from the Bank’s monthly payment. Mortgages can be given in different currencies like Euro, Dollars, British pounds etc.
- Do EU citizens need a work permit?
-
Since Cyprus entry into the EU on May 1st 2004, all EU citizens have every right to live and work in Cyprus without restrictions provided that they hold an EU passport. However, non-Cypriot citizens must still follow the formality of registering at the local immigration office in order to obtain a social security number.
- Do I need to appoint a solicitor?
-
It is strongly advisable to appoint a solicitor to handle your purchase in Cyprus. The duties of a solicitor involve all necessary searches in the Land Registry Office, the preparation and correction of the Contract of sale, the deposition of the Contract of Sale in the Land Registry Office and your application to the Council of Ministers if one is needed. When choosing a solicitor to represent you try to find one that is experienced in Real Estate matters and make sure he is only representing you and NOT both parties.
- Do I need to make a will in Cyprus?
-
It is advisable to make a will in any country where you have immovable assets you would like to pass on in a certain way. Inheritance tax has been abolished in Cyprus.
- Does Cyprus have a Land Registry Office? What is the Legal system like?
-
Cyprus has one of the most reliable and well-organized Land Registry Office in the world which is based on the British equivalent. Purchasing a property in Cyprus can be a very safe procedure. The legal system is also based on the British legal system.
- Is there VAT on properties and at what percentage?
-
As from 1st of May 2004, there is VAT on newly built properties at 15% while a 10% can be refunded to first time buyers that will be using the property as a permanent home and on certain defined criteria for prices, sizes etc. There is no VAT at the purchase of a resale property as well as Land. As from January 2008 there is the possibility of having VAT on the purchase of Land as well.
- Stamp duty, who pays it and when?
-
Unless otherwise stipulated in the contract, the purchaser is liable for the payment of stamp duty at the rate of EUR 0.15% per thousand of the value up to EUR 170,860.14. Thereafter the rate becomes EUR 0.20% per thousand.
Although the non-affixing of stamps does not invalidate the contract, the stamp duty plus a fine will be payable when the document is produced to the court or any Government department. In order to avoid the payment of a fine, the documents should be stamped within 30 days of their signing. In case of mortgage, the registration fee is 1% of the amount secured, plus the relevant stamps.
- Transfer Fees, who pays them and when?
-
The purchaser will be liable to pay the following transfer fees for the property acquired, when this is registered in his/her name at the Lands' Office. The fees are charged on the property's market value at the date of purchase.
| Declared Sales Value or Market Value |
Rate % |
| 0 - € 85,430.07 |
3 |
| € 85,431.78 - € 170,860.14 |
5 |
| Over € 170,861.85 |
8 |
Transfer fees to couples who jointly place the property in their names have an advantage in that they each pay according to the value of each half. E.g. For property up to € 170,860.14 the transfer fees are 3% on € 85,430.07, for the husband and 3% on € 85,430.07 for the wife (total payment of fees € 5,130.00) rather than € 6,840.00 using the above table.
- What are the annual property charges and taxes?
-
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st January 1980.
| Property Value 1980 price € |
Annual Tax € / thousand |
| upto € 170,860.14 |
zero |
| € 171,032.71 - € 427,150.36 |
2,5 |
| € 427,152.07 - € 854,300.72 |
3,5 |
| over € 854,302.43 |
4 |
- What are Title Deeds?
-
Your Solicitor will need to investigate any proposed period needed for the title to be issued. The Solicitor will have to look into any liabilities on the title including mortgages. Title Deeds are the certificate that gives the beholder maximum rights to the said property. A certificate of approval must be gained before the issuing of Title Deeds. Checks are made by Government officials to ensure the property has been built exactly to plan and that the permits are in order.
- What is the basic buying process in Cyprus?
-
Step one is look at your financing options. You may need a mortgage or loan or you might be in a position to buy outright. The next step is to reserve your property through a Solicitor with a deposit. If you buy off – plan property in Cyprus is normally paid in staged payments. Normal terms can be 20% to 30% deposit within a period of 30 days of signing the sales contract. It is strongly recommended that our clients take independent legal advice or we can recommend the services of some reputable Lawyers here in Cyprus. All sales must be by law in writing and please ensure you understand everything. Once the contract is signed the lawyer should file this with the Land Registry within a time span of 60 days. This is termed as Specific Performance and thus ensures your beneficial rights to property ownership are legally protected. The benefits once filed means the contract of sale cannot be withdrawn by anyone other than yourself, so the property cannot be sold, leased, transferred or mortgaged without your consent. Stamp duty is a one off payment borne by the buyer made payable to the Land Registry at the district of the property location. This payment can be made on your behalf by your Lawyer and is due within 30 days of the signing.
- What is the cost of living in Cyprus?
-
Even though the cost of living has raised in the past two years Cyprus still enjoys a very low cost of living in relation to many other EU Countries. At the same time the standard of living in Cyprus is considered very high.
- What is the crime level in Cyprus?
-
Crime in Cyprus is, comparatively, at a very low level. Street criminality is absent in Cyprus. The Police is always ready to assist anyone who needs help. In case of emergency, one may telephone 199 or 112 (in all towns). All policemen speak good English.
- What is the Income and Capital Gains Tax rate in Cyprus?
-
Dealers in land are treated under the income tax laws whereas non dealers under the Capital Gains Tax ones. Capital Gains Tax is levied at the rate of 20% on gains arising from the disposal of immovable property or the disposal of shares of companies the assets of which consist mainly of immovable property. The cost of acquisition and sale includes interest of payments paid for the acquisition. Additions to the property etc. are also deductible from gains. On the acquisition cost, the inflation rate (as this is published by the Government) is added on. Thus the tax is charged on gains which takes into account the inflation (which for the last years is 2.5%- 3.5% p.a.). The Gains, Tax as a whole, has minimal effects since the appreciation of value coupled with the following allowances and inflation leaves little for taxation. In the case of companies these allowances are not applicable.
- What properties can a non-Cypriot purchase?
-
Under Cyprus Law, Cyprus citizens as well as E.U. citizens who have their permanent residence in Cyprus are allowed to acquire any property without any restrictions.
The residential status is ascertained by the district Offices and is obtained when a person resides in Cyprus for a total period of 183 days per year or more.
Foreigners and E.U. citizens who are not permanent residents in Cyprus, wishing to purchase immovable property in Cyprus, are obliged to adhere to special formalities and are restricted by certain regulations.
Restriction as to the size and type of the property. The above individuals are given permission to acquire only one of the following:
- One apartment
- One building
- Building plot or land up to 4,014 m2
For foreigners living or working in Cyprus for a long period of time a permit to acquire a second house can be granted.
After the permission has been obtained and the property is registered in the name of the purchaser, there are no other restrictions for the foreigner. The owner of the immovable property can sell or dispose of the property as he wishes, as any bona fide repeat purchaser will be granted a subsequent permit.
For Sale
99 917 538
Send us your questions!
Contact us today, for a customized property management agreement!
