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The following is a selection of typical
questions that we have had from clients,
along with the correct answer. If you wish
to add to this, do please email us at
info@buyavillacyprus.com |
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What is the Government System in Cyprus?
Cyprus is an independent and sovereign
republic. A presidential system of
Government modelled on western democracies
is in place. The President, who is the Head
of State, is elected by the people every
five years and executive power lies both
with him and the Council of Ministers
appointed by the multi-party system based on
proportional representation. The judiciary
is the separate and independent body within
the state administering the Law. The
Republic of Cyprus comprises the south of
the island and majority area, where the
indigenous Cypriots are principally of Greek
origin.
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When will Cyprus joint the E.U. ?
The Republic of Cyprus has been accepted as
a full member of the European Union with
effect from May 2004. This is expected to
bring economic benefits for the island and a
large increase in the demand for property.
It will also provide a number of social
benefits to EU nationals who choose to live
in Cyprus. |
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What about the north of Cyprus?
The north of Cyprus is under illegal
occupation by Turkey and is not accessible
except from Turkey. The north of Cyprus is
not recognised as a separate state
internationally. The north of the island is
home to the Turkish Cypriots plus illegal
immigrants from Turkey. Re-unification of
the island has been under negotiation for
many years, after the conclusion of recent
effects by the UN, re-unification in the
near future now looks unlikely. If it does
not take place, peaceful co-existence with
the Republic of Cyprus will continue and the
situation is likely to remain as is. If
re-unification were to come to fruition it
would benefit all Cypriots and make Cyprus
whole again - a positive factor all round.
Either way, the future for the Republic of
Cyprus, as a full member of the EU, is
bright
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What
is the climate of Cyprus?
Cyprus enjoys one of the healthiest climates
anywhere in the world. Cyprus boasts over
three hundred days of sunshine a year.
Cyprus registers as the sunniest island in
the Mediterranean with the warmest sea
temperature ranging from 16°C in January to
32°C in August. See 'About Cyprus' for more
information |
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What is the Cyprus Currency?
The Cyprus Pound which is made up of 100
cents. Coins range in value from the half
cent to 50 cents and there are four bank
notes £1, £5, £10, £20. The Cyprus Pound is
worth about 10% more than the British Pound.
See Currency Converter under 'About
Property' |
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What is the cost of living in Cyprus?
Cyprus enjoys a relatively low cost of
living. It offers a full, but comparatively
inexpensive lifestyle. Recent statistics
showed Cyprus as one of the most inexpensive
countries in Europe. The local markets
flaunt a wealth of colourful fresh fruit and
vegetables, meat and fish and modern
supermarkets are fully stocked with a large
range of local and imported goods. |
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What language is spoken in Cyprus?
Greek is the mother tongue of the Republic,
however English is readily spoken and
understood almost everywhere. Knowledge of
French and German is increasing with the
Island’s tourist trade.
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What is the policy on household pets?
Cats and dogs are permitted to be brought
into Cyprus provided a licence has been
obtained in advance from the Department of
Veterinary Services in Nicosia. A period of
6 months house quarantine may be imposed
which, in most cases, may be at the owners
premises. (If the country of importation is
the UK then house quarantine may not be
possible). |
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Can I
be employed in Cyprus?
Non-Cypriots wishing to take up employment
in Cyprus are required to have a permit
under the Aliens and Immigration Law. This
will change when Cyprus completes its entry
into the EU by May 2004, when EU member
nationals will be able to work in Cyprus as
in their home country. |
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Is education for non-Cypriot children
possible in Cyprus?
In Cyprus there are both junior and
secondary schools of a high standard for
English, French and Italian speaking
students. |
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Buying property in Cyprus. How does it work?
Compared to many countries, the mechanics of
property purchase in Cyprus by non-Cypriots
are relatively simple. Non-Cypriots are
permitted to buy for their personal use
either an apartment, a piece of land, or a
house on a site not exceeding 2 donums (2675
M2). In certain cases a non-Cypriot may be
given permission to own a property that
exceeds these dimensions. Once Cyprus
completes its entry into the EU this process
will be simplified further and without these
restrictions.
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What does property ownership mean in Cyprus?
Ownership in Cyprus generally means freehold
title, that is owning property perpetually.
Transfer of ownership from sellers to buyers
is undertaken by a simple procedure through
the land registry office either by the buyer
in person or by appointing a third party
with a Power of Attorney. In the case of
non-Cypriots a prerequisite of registration
is evidence that the property has been paid
for with foreign currency and also that the
buyer obtained permission from the Council
of Ministers (usually a formality).
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Are there any legal safeguards for foreign
investors?
Contrary to the risks inherent in the
purchase of property in some countries,
Cyprus has never been involved in the
nationalisation of any sector of the economy
nor in the expropriation of property owned
by non-Cypriots. Indeed the Republic has
often guaranteed foreign investments jointly
and severally with local participants. |
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Can I
resell my property?
In the event that the purchaser should wish
to sell the property at some time in the
future, Cyprus law permits the full amount
paid for it in foreign currency to be
remitted abroad at the time of the sale. The
proceeds from any increase in the value of
the property can also be remitted subject to
a limit of C£10.000 profit per year
beginning the year following the sale. Also
non-residents on the basis of an agreement
concluded overseas may receive the total
proceeds free from exchange controls.
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Can I apply for permanent residence?
There is no necessity for a non-Cypriot
owning real estate in Cyprus to hold a
permanent Residence Permit. However,
application for permanent residence is easy
to obtain once the applicant fulfils certain
requirements. The application for permanent
residence can be made by visiting the local
immigration office in the area of residence.
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What property duties and other costs are
involved with the purchase of Real Estate?
Upon the signing of a contract, the
purchaser is liable to pay stamp duties
amounting to 15 cents per C£100.00 and then
at the rate of 20 cents per C£100 for any
purchase monies in excess of C£100.000. Upon
transfer of the freehold title of the
property and registration in the purchaser’s
name the following transfer fees are payable
by the purchaser.
From C£1 - C£50.000 3%
C£ 50.001- C£100.000 5%
C£100.001 and above 8%
Where properties are bought in joint names
these thresholds are doubled.
Above duties and transfer fees are payable
once only.
To sum up:
a. On Signing - Stamp duties 1.5% or 2% of
contract price.
- Stamped copy of sales contract (2) £2.
b. On delivery - Settlement of any extras.
- Stamp duties for bills of exchange (if
any) £0,50 each.
c. On transfer - Legal fees for Council of
Ministers Approval.
- Roughly £200. In addition every year the
owner of the property should pay the various
Property and Municipality taxes which all
together will be around £150 per year.
Lastly the Common Expenses, which will be
around £150 annually. |
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Is
there any Capital Gains Tax?
Profits from the disposal of Immovable
Property, as well as shares in companies
which own immovable property in Cyprus are
liable to Capital Gains Tax. The tax rate is
20% on the profit. The said profit is equal
to the difference between the property
increased by the amount of inflation from
the date of acquisition to the date of
disposal.
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Is
there an Estate Duty in Cyprus?
Upon death the worldwide property of
domiciled individuals is subject to
inheritance law. Property acquired in Cyprus
after 1st January 1976 with foreign currency
is exempt if the deceased was at any time
prior to his death a permanent resident
abroad. |
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Is there an Immovable Property Tax?
There is Immovable Property Tax, which is
imposed on the market value as at 1st
January 1980 and applies to the Immovable
Property owed by the taxpayer on the 1st
January of each year. Physical and legal
persons are both liable to Immovable
Property Tax as follows: Tax Rates
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Property Value C£
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Rate %0 |
Accumulated Tax C£ |
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Up to 100.000 |
Nil |
Nil |
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100.001 – 250.000 |
2 |
300 |
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250.001 – 500.000 |
3 |
1050 |
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500.000 plus |
3.5 |
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Can I get finance for the purchase of a
property?
Finance for the purchase of a property can
be arranged in Cyprus as follows:
1. A loan up to a maximum of C£ 100.000 per
person. A married couple could, for example,
borrow C£200.000. 30% is required and the
capital and the interest is repayable in
equal instalments over 12 years.
2. Alternatively if an endowment insurance
policy is taken out, an interest-only
mortgage can be arranged. Repayments can be
monthly, quarterly or annually. Loans are
available in a variety of currencies of the
buyer’s choice.
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Is VAT payable and if so at what rate?
VAT is applicable and currently the rate is
at 15%. In the sales contract the contract
price is inclusive of VAT. |
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Will I save money going directly to the
developer or builder?
No. You will always get the same or a better
price through an independent property
consultant. He is paid for his marketing
efforts by commission from the developer or
builder. Most property in Cyprus is sold
through brokers and prices therefore include
brokers commission. You should therefore use
your consultants services to the fullest
extent, as they are free-of-charge to you. |
