Cyprus Lawyers A & G Kouzali Cyprus Law Cyprus Property Lawyers Legal Consultants

As a non-Cypriot, what am I allowed to buy?

Compared to buying a property in many other countries buying a property in Cyprus is very easy. As a non Cypriot you are entitled to buy a freehold property, either:

• An apartment or house for your own use or
• A villa on a building site not exceeding 4000 sq. m or
• A piece of land not exceeding 4000 sq. m for the purpose of erecting a house within a reasonable time frame.
• What are the prices and terms of payment?

Prices depend on size, location and specification. Our Sales Department will be expert to 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 payable of 1% payable on the amount of the advance.

Is the property Freehold or Leasehold?

It is freehold – The system of Leasehold is almost unknown in Cyprus.

• How does the transfer of property take place? How and what cost do I get possession of the Title?

Title of Ownership takes place by a simple process pf 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 through your lawyer. A prerequisite for registration in the case of a non-Cypriot is evidence that the property had 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 undertaken up by our company, free of charge, as part of the agreement.

 However, before the issuing of the title deed of the property, the purchaser should pay the transfer fees which are payable to the Land Registry Office. The transfer fees are shown in the following table:

E.g Property valued £50.000 CYP the purchaser would pay £1.500 CYP and for a property valued of £100.000 the amount of £4.000 CYP.

• Are any After Sales services available?

Yes. Our After Sales Department provides assistance not only for the Electricity, Water and Telephone connection but can also arrange the following services:

• Moving to Cyprus
• The purchase of household furnishing and appliances
• Vehicle purchasing or leasing
• Insurance Policies for House and Contents, Life < Medical and Vehicles cover
• Property Management
• Interior Decoration
• Cleaning, Gardening and Pool Maintenance Services

 

• Are there any fees payables over and above the price of the property for Legal Agency work or Stamp Duty?

There are normally no Agency fees or 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 payment of a fine, the Purchase Contract must be stamped within 30 days of its signing at the rate of 1.5 per thousand up to CYP £100.000 and thereafter at the of 2.0 per thousand. 

• What expenses does the owner of an apartment have to meet? What is the owner’s share?

In Cyprus there no “Rates” as are known in most European countries. If a person has properties registered in his name, the market value of which exceed CYP £100.000 there is a property Tax on the excees value. The Annual Immovable Property tax is imposed by the government and is levied on the market value of the property as of 1^st January 1980 at the following rate:

Apart from the expenses of Telephone ans also for Wtaer and Electricity, for which are separate meters, the owner has to meet a proportion of the Common Expenses. This is relation to the cost for lighting and cleaning of the common areas and maintenance of grounds and swimming pool. Common Expenses are comparatively in expensive. For a 2 bedroom apartment they would not notmally exceed an average monthly cost of CYP £15.

 Household goods, furniture and personal effects can be imported free on any taxes by overseas retirees, provided that they are for their own personal use and have been used for a reasonable period 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. 

• Are there Private Health Insurance Schemes available?

 Yes, there are numerous private clinics and hospitals. They are available at a reasonable cost, depending on age, rate of health and the level of insurance taken out. Health Isurance available per annum starting from CYP £300. Doctors visit approximately CYP £20.

 Is the Property insured? 

Smart Choice provides comprehensive cover for Fire and Theft and associated hazards until the property is delivered to the owner. The insurance cost vary between CYP £30 and CYP £100 per year depending on the value of the property insured.

Insurance for the contents of the property is the responsibility of the owner.

• Are there reputable International schools in Cyprus?

Yes, in all the towns. There are well- established schools & colleges with a record of high academic achievement offering education to British university entry level all over Cyprus.

Can I sell the property easily? Will I be able to take the proceeds of the sale out of Cyprus?

You can sell the property at any time without restriction, either through our office or by other means. The equivalent of the full purchase price can be remitted immediately. Any profit may be taken out of Cyprus at the rate of CYP £10.000, plus interest, per annum commencing the year after the sale. Property sales in Cyprus are subject to Capital Gains Tax a rate 20%, however the first CYP £10.000 is exempt.

• 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
• Letter of Guarantee from your Bank of CYP £300
• Application Fee of CYP £20
• Three Passport size photographs
• Passport

5% per annum on pensions and investments income brought to Cyprus.

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