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Buying a property in Cyprus?
Your questions answered:
Q. Who sets the price of the holiday property?
Q. What language do they speak in Cyprus?
Q. Is Cyprus now a full member of the European Union?
Q. How do the Cyprus banks compare?
Q. What about the currency in Cyprus … is it easy to understand?
Q. Is the cost of living in Cyprus really much lower?
Q. Are there any tax advantages to living in Cyprus?
Q. Can you explain the double taxation treaty?
Q. What is the governmental structure in Cyprus?
Q. Is the crime rate high or low in Cyprus?
Q. Can I work in Cyprus once I have moved there?
Q. Do I need permission to purchase a property in Cyprus?
Q. I would like to purchase a five year old property in Cyprus… do I need a survey?
Q. What can I expect to pay in legal fees?
Q. When do I have to pay stamp duty and how much can I expect to pay on my property in Cyprus?
Q. What about Inheritance Tax?
Q. How do I get the Title Deeds to my property in Cyprus?
Q. How much Transfer Tax will I have to pay?
Q. What other charges can I expect?
Q. What about furnishing my holiday property in Cyprus?
Q. What about after I have purchased my holiday property in Cyprus?
Q. How easily can I arrange property maintenance services in Cyprus?
Q. I’d let to rent out my property in Cyprus… how do I go about this?
Q. If I am moving to Cyprus to live, will I be able to take my dog/cat with me?
A. If you are purchasing a property on a new development, it will have been set by the developers/management company. Regardless of agent’s commissions, you should still pay the same price whoever you purchase through … whether you go direct or through a third party. Resale properties are handled much the same way as in the UK … with a valuation taking place and the agent’s fees agreed before the property is marketed. Going through a company like Headlands has several advantages:
• You will get to see a wide range of properties in Cyprus that suit your requirements
• You have the benefit of our many years experience, as well as a fully staffed office to support you in the UK
• It will eliminate any possible misunderstandings
• It helps takes away the stress and strain associated with house purchasing in Cyprus
Q. What language do they speak in Cyprus?
A. Greek is the population’s mother tongue but with the strong influence Britain has exerted on the island's history, English is widely spoken and understood. Knowledge of French, Russian and German is increasing with the island's tourist trade.
Q. Is Cyprus now a full member of the European Union?
A. The first phase of the agreement was implemented on 1st January 1998 with the abolition of all customs duties and quantitative restrictions on trade of industrial products between the EU and Cyprus. The second phase was recently agreed and Cyprus was welcomed as a full member of the EU on May 1st 2004.
Q. How do the banks in Cyprus compare?
A. The banking system in Cyprus closely follows the British pattern. The banks have many branches throughout the island which are efficient, modern and well equipped with the latest technology. Non-Cypriot citizens may open foreign currency and local deposit accounts without difficulty, although you will also find branches of many international banks at your disposal. Major credit cards, such as those within the Visa and Mastercard networks, are widely accepted in Cyprus. Transactions and payments are simply made through your foreign deposit account.
Q. What about the currency in Cyprus… is it easy to understand?
A. Yes … the Cyprus currency system is based on the decimal system. One Cyprus Pound is divided into 100 cents. Coins range in value from one cent to 50 cents and four bank notes are in circulation: £1, £5, £10 and £20.
Q. Is the cost of living in Cyprus really much lower?
A. The relatively low cost of living in Cyprus is definitely one of the advantages that appeals to the potential buyer. The island offers a full but comparatively inexpensive lifestyle. In fact, recent statistics pointed to Cyprus as being one of the most inexpensive countries in Europe. The local markets flaunt a wealth of colourful fresh fruit and vegetables, meat and fish … locally grown and produced … whilst the modern supermarkets are fully stocked with a large range of local and imported goods.
Q. Are there any tax advantages to living in Cyprus?
A. Non-Cypriot individuals residing in Cyprus pay income tax at a flat rate of just 5%. This applies to the amounts remitted to Cyprus from pensions or income from overseas investments. The first CY£2,000 per annum are tax exempt. Personal effects, household goods and furniture may be imported duty free by immigrant retirees, provided that they are for personal use and have been in use for some time (approximately one year). There is no duty on one car and retired couples benefit from the additional concession of two duty free cars.
Q. Can you explain the double taxation treaty?
A. Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax levied in the taxpayer’s country of residence. Where different tax rates apply, the tax payer will ultimately not pay more than the higher of the two rates of the respectively countries. Such treaties combined with very favourable tax rates for international business entities in Cyprus open the doors to significant tax planning opportunities. The fact that Cyprus is not considered a tax haven but rather a country offering tempting tax incentives expels the distrust that international tax havens often arouse. To date, double tax haven treaties exist between Cyprus and the following countries: Austria, Belarus, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Slovakia, Sweden, Syria, United Kingdom, South Africa, United States and Yugoslavia.
Q. What is the governmental structure in Cyprus?
A. Cyprus is an independent and sovereign republic with the elected president (5 year election cycle) as head of state. The legislation power lies with the elected House of Representatives and appointed council of ministers. The legal system is based on the British/European system with independent power exercised by judiciary. Cyprus is a member of the UN, the British Commonwealth, the non-aligned movement, World Bank and IMF, and shortly to be a full member of the EU.
Q. Is the crime rate high or low in Cyprus?
A. Cyprus enjoys a remarkably low crime rate … 1/6 of the European average … another reason for its popularity with foreign buyers for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of and theft not commonplace.
Q. Can I work in Cyprus once I have moved there?
A. Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit.
Q. Do I need permission to purchase a property in Cyprus?
A. Yes. Permission to purchase a property must be obtained from the Council of Ministers by written application. This must be submitted by the non-Cypriot purchaser after the agreement has been signed. However, the permission is granted more or less as a matter of course to all bona fide buyers. In the meantime purchasers may take possession of their property without restriction. By law, a non-Cypriot in Cyprus is entitled to a residence permit but is not required to hold a permanent residence permit … the latter being easy to obtain once certain requirements are fulfilled. You need to submit an application and provide proof that you and your family are self supporting. The following documents must accompany your application: • A copy of the sale/rental agreement • Copies of pension/retirement income • Any other document(s) relevant to income • Three photos and passport(s) The application for permanent residence may be submitted to the local immigration office in the area of residence.
Q. I would like to purchase a five year old property in Cyprus… do I need a survey?
A. A survey on any resale property is strongly recommended, just as it would be in the UK or elsewhere. Our Cypriot team or your lawyer will be able to recommend a surveyor to you. He will inspect the property and prepare a report, eventually showing any defects, which would not be visible to everyone’s eyes. It will save you unpleasant surprises at a later stage, and depending on the type of defects stated (if any), you may get a reduction on the price or you maybe in a position to request the vendor to repair them, or insist additional guarantees be inserted in the contracts. One thing is for sure; you will know what you are buying. A surveyor will not allow his love for a property to cloud his judgement as you may have done.
Q. What can I expect to pay in legal fees on my property in Cyprus?
A. The legal fees usually charged by a lawyer are approximately CY£500 and cover the review and alteration if required of the Sale Agreement, revision of the General Agreement (which regulates the use of common areas, where applicable) and submission to the land registry for specific performance.
Q. When do I have to pay stamp duty and how much can I expect to pay?
A. Stamp duty is due at the time of signing the contract. This is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£1,000. The purchase contract must be stamped within 30 days of its dated signature or a fine will be imposed.
Q. What about Inheritance Tax in Cyprus?
A. There is none.
Q. How do I get the Title Deeds to my property in Cyprus?
A. Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the land registry office. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within 60 days from the contract date. When issued, the title deed will be registered in the name of the buyer and will be recorded in the government archives – these are confidential and will not be published or made accessible under any circumstances.
Q. How much Transfer Tax will I have to pay?
A. The transfer of the title can be effective once the Council of Ministers’ permission is obtained along with confirmation of receipt of the foreign funds. Upon transfer and registration in the purchasers name the district Land Registry Office will charge transfer fees which are based on the market value of the property at the time of purchase – as follows: Value up to CY£50,000 - 3% CY£50,001 – CY£100,000 - 5% CY£100,000+ - 8%
Q. What other charges can I expect to pay on my home in Cyprus?
A. The annual immovable property tax imposed by the government is approximately CY£60-120 per year. The municipal authorities also levy an annual property tax of CY£20-30 per year and other authorities may also require CY£20-40 sewage tax. Common expenses are usually paid monthly or quarterly in advance. They vary from development to development and depend on the area and type of property. They cover an owner’s share of the cost of cleaning and maintaining common areas and gardens, swimming pool expenses, electricity in common areas, management fees, rubbish collection and repairs. The estimated total is in the region of CY£150 to CY£300 per year. Charges for utilities are payable to the respective authorities at regular intervals throughout the year. They are based strictly on the consumption of each unit. While the cost will vary, approximately CY£180 per year can be considered a rough guide. The local municipal or other authorities are responsible for regular collection of household rubbish. Depending on the area of your property, the cost is in the range of CY£40 to CY£50 per year. It is also necessary to take out buildings and contents insurance on your property.
Q. What about furnishing my property in Cyprus?
A.
Headlands can help in a number of ways … • We can advise on those developments
that offer furnished properties or furniture packs readily for sale
and discuss this with the sales team on your behalf;
•
You can discuss your requirements with a member of our staff in Cyprus
… with their local knowledge they will know the best places to shop
for the type of products you require. Time permitting, we can even take
you shopping at no extra cost!
• We can put you in touch with one of the highly skilled and experienced
interior designers that we are happy to recommend. Whatever your budget
and aspirations are, they can work with you … or for you … to create
the perfect ambiance.
Some will project manage the whole exercise from the initial consultation and designs through to the finishing touches or you may just choose to seek preliminary advice and shop for yourself … or elect for a level of service somewhere in between.
Q. What about after I have purchased my property in Cyprus?
A. The main developers in Cyprus tend to look after their own after sales, so your first point of call would most likely be direct to them … whether it’s to have alterations or to highlight any problems with the property itself. That said, we at Headlands do have a wealth of experience in after sales and can act upon your behalf should things not get resolved to your satisfaction.
Q. How easily can I arrange property maintenance services in Cyprus?
A. As we only work with the most prestigious companies on the island, you’ll find most of these offering in-house property maintenance services … from gardening to pool maintenance, regular cleaning to ad hoc visits. If they don’t offer the service you require themselves, they will certainly put you in touch with a reputable company near to your property, ensuring they are best placed to keep an eye on it for you.
Q. I’d let to rent out my property in Cyprus… how do I go about this?
A. Again many of these developers have in-house services and will make all the necessary arrangements for you. If they don’t, they will happily recommend … as will our Cypriot team … respected companies who specialise in this field. Cyprus is a popular island for holidaymakers virtually all year round, so you can expect a reasonable income from renting out your home.
Q. If I am moving to Cyprus to live, will I be able to take my dog/cat with me?
A. Pets may be brought into the country provided a licence has been obtained in advance from the Department of Veterinary Services in Nicosia.
A house quarantine period of six months may be imposed. Some of the information in this section has been supplied by third parties, and Headlands International and its associated companies cannot be held responsible for any errors or omissions. Professional advice should always be sought at the time of purchase.
Choose the best holiday property to buy in Cyprus
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Click on the links below for more inforamtion about areas and places in Cyprus:
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Want to get more holiday property for your money? If you are buying a holiday property in Cyprus, then you will need to pay for it in foreign currency. To ensure that you get the best possible foreign exchange rate, allow us to arrange a no obligation currency quote. We have access to an easy to use foreign exchange service and their guarantee is that they will not be beaten on the rates they quote. If the rate is obtainable within the market they will ensure they get it for you, making your holiday property purchase less expensive. |
Holiday Property for sale in Cyprus