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2. What property can a non-Cypriot purchase?
3. Do properties have title deeds?
4. Can a loan be obtained locally?
5. What is required for the transfer of property and what are the fees payable?
6. Do I need to employ a solicitor?
7. Do I need a valuation/survey?
8. For people who have purchased property, is residential permit easily available?
9. Are after sales services available?
10. What are the communal charges?
11. What taxes are payable on property (Depositing of the Sales Contract)?
12. Is there medical care system in Cyprus?
13. Estate duties.
14. What is the cost of living in Cyprus ?
15. What is the price indicators for property?
16. Is tax paid on pensions?
17. Double taxation treaties.
18. WHY US?
AFRICANOS REAL ESTATE with experience in property since 1981. It has offices in all the towns and its experience personnel will offer you all the information for your acquisition. They will guide you through all the necessary steps required and will suggest safeguards from possible pitfalls in getting the best property for your needs at a reasonable price.
Our wide range of associates in Cyprus and abroad put us in a most suitable position to offer the wildest possible range of properties. Listing in our website is free of charge. Even if we not have in our listing the property that you need should you give us information on your requirements and an opportunity to search, we will do our best to find requested property. A strong marketing team which exhibits properties world wide, keeping in touch with our clients with information and assistance.
Our professional staff will give you the necessary details and other guidelines for buying safely, property in Cyprus . Our Office will arrange all the details with the developer/seller, negotiate on you part to obtain the best price and introduce you to a solicitor who will assist in all the legal work necessary, including opening a bank account and other financial details.
Buying a property in Cyprus is quite easy. As a non-Cypriot you are entitled to purchase FREEHOLD for your personal use:
• An apartment or a house
• A villa o a building site not exceeding 4.000 esq.
• A piece of land not exceeding 4000 esq. for the purpose of erecting a house within a reasonable time period.
• Offshore Business Units can buy/build unlimited office/work space.
• A second home maybe permitted depending on the type (e.g., a holiday home in addition to a permanent home in the city.)
• 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.
• Acquisition in shares other than between husband and wife is not permitted.
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.
The following documents are required to be submitted in order for property to be transferred to your name as a purchaser:
• Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported in to Cyprus .
• The sale contract.
• The Ministerial Council\'s permission for the purchased property.
• The property\'s title deeds, if available.
• Confirmation that all taxes for the purchased property ( sewerage, immovable property, town taxes etc) have been paid.
Transfer 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 rates are as follows:
Property Transfer Accumulated
Up to 50.000 50.000-100.000 100.000 and over
A Power of Attorney can be issued to a third party to attend and conclude the transfer on the buyer\'s behalf.
here 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.
Temporary Permit: The requirements for this permit is 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 be above the applicant must establish proof of an annual income of £10.000 per annum for a couple.
After April 2004, as Cyprus becomes a member of the EU, the procedural restrictions on the property purchase on EU members will be lifted.
All restrictions on property on EU members will be lifted 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 .
The after sales service department of AFRICANOS REAL ESTATE provide assistance 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.
You can contact our support department including sending an e-mail to africanos@spidernet.com.cy for further information.
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:
[a] Up to £100.000 [b] £100.001-£250.000 [c] £250.001-£500.000 [d] £500.001 and over
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 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 of £50.000 per year.
5. Other small annual taxes are the sewerage fees and garbage collection fees, paid on a yearly basis. These range from CY£60-CY£80 p.a.
The medical profession in Cyprus is of high standard the majority of doctors having been trained in Europe ( UK mainly) and the USA . Medical care is inexpensive. A visit to the doctor costs £15-£25 and X-rays £20-£25.
Medical care through private insurance is available starting from £142.-perannumm.
The cost of living is very much lower than other European countries as can be seen from this table:
|
Comparable food prices-2002 |
|
E.U - 15 Members |
|
100 |
|
Iceland |
|
155 |
|
France |
|
116 |
|
U.K |
|
108 |
|
Italy |
|
105 |
|
Belgium |
|
105 |
|
Cyprus |
|
91 |
|
Slovenia |
|
89 |
|
Portugal |
|
87 |
|
Greece |
|
87 |
|
Spain |
|
86 |
|
Hungary |
|
62 |
|
Poland |
|
61 |
|
Turkey |
|
58 |
|
Slovakia |
|
54 |
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 - Chech Republic - Denmark - Egypt - France - Germany - Greec- Hungary - India - Kuwait - Malta - Norway - Poland - Romania - Russia - ( including Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine) - Slovakia - South Africa - Sweden - Syria - Yugoslavia ( Serbia - Montenegro ).
