Frequently Asked Questions (FAQ)

Ø      What property can a non-Cypriot purchase?

Ø      Do properties have title deeds?

Ø      Can a loan be obtained locally?

Ø      What is required for the transfer (registration) of property and what are the fees payable?

Ø      Do I need to employ a solicitor?

Ø      Do I need a valuation/survey?

Ø      For people who have purchased property, is residential permit easily available?

Ø      Are after sales services available?

Ø      What are the communal charges?

Ø      What taxes are payable on property (Depositing of the Sales Contract)?

Ø      Is there medical care system in Cyprus

Ø      Estate duties

Ø      What is the cost of living in Cyprus?

Ø      Is tax paid on pensions?

Ø      Double taxation treaties

What property can a non-Cypriot purchase?

Buying property in Cyprus is quite easy. As a non-Cypriot you are entitled to purchase FREEHOLD for your personal use:

1. An apartment or a house

2. A villa on a building site not exceeding 4.000 sq.m.

3. A piece of land not exceeding 4000 sq.m. for the purpose of erecting a house within a reasonable time period.

4. Offshore Business Units can buy/built unlimited office/work space.

5. A second home maybe permitted depending on the type. [eg., a holiday home in addition to a permanent home in the city.]

6. Acquisition of Leases having a term in excess of 33 years duration, are treated similarly in Real Estate as a freehold in relation to the limitations.

7. Acquisition in shares other than between husband and wife is not permitted.

Do properties have title deeds?

     Properties have title deeds. Title deeds are issued by the Land Registry Department, of the Cyprus Government, a few years after completion of the project. Individual houses follow the same procedure. Upon approval by the Council of Ministers of the application and confirmation by the Central Bank that the purchase was with foreign funds, then the transfer of deeds can take place within a few hours.

Can a loan be obtained locally?

     All the main banks in Cyprus offer loans for the purchase of property in foreign currency. If you acquire through a Developer he usually has prearranged loan facilities, which can be explained to you when interest is shown for the purchase of property.

     Normally a deposit of 30% can facilitate a loan on the balance -70%-.

     Interest rates vary but as a guideline you can expect, the base rate -libor- +2,0 %. Repayment period can be up to 15 years.

What is required for the transfer (registration) of property and what are the fees payable?

     The following documents are required to be submitted in order for property to be transferred (registered) to your name as a purchaser:

1. Written confirmation by the Central Bank of Cyprus that the purchase was with foreign funds, which was imported into Cyprus (the amount has to be more than 70.000 CY pounds).

2. The sale contract

3. The Ministerial Council's permission for the purchased property (not for E.U. citizens).

4. The property's title deeds.

5. Confirmation that all taxes for the purchased property (sewerage, immovable property, town taxes etc) have been paid.

Transfer fees (registration fees) are paid on the value that the Land Registry department determines that it is the Open Market Value of the property on the day of the original transaction / sales contract.

     Transfer fees (registration fees) are as follows:

Property transfer fees (Registration fees)

     A Power of Attorney can be issued to a third party to attend and conclude the transfer on the buyer's behalf.

     There is a transfer fee advantage if the property is registered in the name of the two spouses [husband +wife] as the total purchase price is divided by two, thus lowering the rate of the transfer fee.

Do I need to employ a solicitor?

     Although we recommend seeing a solicitor, you may find that is not necessarily required.  If you buy through a reputable developer there are printed ready contracts.  Should you wish to use a solicitor to check the contract and examine the property's date, any impediments etc an average fee is CY £400 - £600.

Do I need a valuation/survey?

     We suggest that you get a survey and valuation report especially for resales and for units of some age.  The cost of a valuation report costs approximately £150, plus approximately £200 for a survey. 

For people who have purchased property, is residential permit easily available?

     Temporary Permit: The requirements for this permit are the production of a sales agreement and a Cypriot Bank Account. The residential permit can be from 1 year to 4 years.

     Permanent Permit: In addition to the above the applicant must establish proof of an annual income of CY £10.000 per annum for a couple.

     After April 2004, as Cyprus became a full member of the E.U., the procedural restrictions on property purchases on E.U. members were lifted. All restrictions on property on EU members will be lifted after April 2009.  However as from April 2004 EU citizens will not require either a residential or a working permit. This development is expected to cause an increase, in demand and property prices in Cyprus.

Are after sales services available?

     For after sales services our agency can mediate and recommend associates to our clients for the following services:

·         Water-Electricity-Telephone

·         Purchase of household appliances and furniture  

·         Insurance policies for the house and its contents

·         Medical Insurance

·         Property Management

·         Cleaning, gardening and pool maintenance.

What are the communal charges?

     In case of Multi-ownership projects whereby a series of common use services are provided, charges vary from apartment to villa according to the quantity/quality of services available and the covered area of the property. Charges are allocated according to the covered area of the property. Charges vary, for apartments from CY£150-CY£250 p.a. and houses with common use facilities from CY£250-CY£350 p.a.

What taxes are payable on property (Depositing of the Sales Contract)? 

1.      Transfer fees: see transfer of property (one-off payment).

2.      Immovable property tax. This is an annual tax which is paid on the value of the property, (on the market value as at 1/1/1980) and is a fixed percentage per thousand:

3.      Fees for the deposit of a sales contract in the Land Registry: The deposit of the sales contract is advisable in order for the purchaser to exercise the defense of Specific performance against the developer/seller. The purchaser has the right to deposit the sales contract within 60 days after signing of the contract. However the sales contract must be deposited and stamped within 30 days after signing. After this period a penalty is imposed. The fees are 1,5/thousand for values up to £100.000 and 2.0/thousand for values there after.

4.      Capital Gains tax: The difference between the purchase price, and other costs incurred, such as inflation, interest costs, improvements etc., and the sales price is liable to the capital gains tax of 20%. The first £10.000 of the difference is exempt. In case of a permanent resident the amount is increased to £50.000 per year. 

5.  Other Property Taxes: These are taxes paid to the Local Authority and depend on the size and value of the property. It covers refuse collection, sewerage, street lights etc. and it varies according to the area, from C£50 - 150 annually

Is there medical care system in Cyprus?

     The medical profession in Cyprus is of high standard as the majority of doctors having been trained and specialised in Europe (mainly UK) and the USA. Medical care is inexpensive.  Indicative, a visit to the doctor costs £15-25 and an X-ray  £20-25.

     Medical care through private insurance is available starting from £142.- per annum.

Estate duties

     Inheritance tax has been abolished since 1/1/2000 (except for properties that are valued for more than CY £300.000). Permanent residents domiciled in Cyprus are exempt from Estate duty on worldwide assets. People with worldwide assets and or tax inheritance problems can find that Cyprus, most attractive on this benefit alone. 

What is the cost of living in Cyprus?

     The cost of living is very much lower than other European countries as can be seen from this table:

Is tax paid on pensions?

     Pensioners who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% for amounts exceeding £2.000 annually. No tax is paid in the country of origin if a double taxation treated exists. As for all Cypriot residents' annual income up to £9.000 for 2003 and £10.000 for 2004 is tax exempt.

Double taxation treaties

     Double taxation treaties are made in order to avoid paying income tax in two countries. This gives the option to the citizen of the countries to take advantage of the low rate of tax in Cyprus. Countries that Cyprus has double taxation treaties are:

     United Kingdom -United States- Austria-Bulgaria-Canada-China-Czech Republic-Denmark-Egypt-France-Germany-Greece-Hungary-India-Ireland-Italy-Kuwait-Malta-Norway-Poland-Romania-Russia-[including Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine]. Slovakia-South Africa-Sweden-Syria-Yugoslavia (Serbia-Montenegro).