Cyprus properties for sale
Company Profile
Cyprus Properties for sale
Properties in Cyprus for sale
Home Search
Plot Search
Land Search
Support
Contacts
 
 
PROPERTY INFORMATION

Cyprus attractiveness to non-Cypriots
Acquisition of property by foreigners
Property ownership
Selling your property
FAQ (Frequently Asked Questions)

·
 
 
Cyprus attractiveness to non-Cypriots

Cyprus is becoming a popular place for foreigners to either retire or acquire their holiday home in the sun. Demand is mainly coming from European countries (especially from the UK). This trend is expected to grow following the forthcoming accession of Cyprus to the EU in May 2004. The high quality of lifestyle and the relatively low cost of living in conjunction with the exceptional hospitality of the locals, are some of the unique characteristics of the island. In addition, the warm climate and the nice sea fronts, as well as the low level of crime offer residents a safe and secure place to live. top

   
 
 
Acquisition of property by foreigners

Buying property in Cyprus is a relatively straightforward procedure. The legal framework regulating this procedure is briefly explained below. The acquisition of immovable property in Cyprus by non-Cypriots is regulated by the Immovable Property Acquisition (Aliens) Law and the Directives of the Central Bank of Cyprus.

It should be noted that to buy property in Cyprus a permit should be obtained from the Cyprus Authorities (Council of Ministers). According to the current Rules and Regulations, acquisition of property by aliens (non-Cypriot citizens by nationality) is allowed with some restrictions/conditions. For residential accommodation the land area should not exceed 4.014 sq.metres provided accommodation is ready. For the acquisition of a building site or a plot of land the same requirement regarding the land area applies, with the extra condition that a residence will be erected for owner occupation soon. Permission for the acquisition of land for other types of properties (such as offices, leisure, industrial etc.) is granted under certain conditions such as the percentage of foreign participation in the scheme, the actual amount of foreign investment and other governmental policies. Offshore entities may also acquire premises for their business or for residence of their foreign employees.

It should be noted that a non-Cypriot is rarely not able to get permission to buy the property of his choice since the procedure is merely a formality. In addition, following the Cyprus accession to the EU (May 2004), restrictions on real estate acquisitions will be soon lifted in accordance with the EU directions. This implies that EU citizens will be able to purchase property as they do in their homeland without any conditions. top

   
  Property ownership

Transfer of ownership from the vendor to the purchaser is undertaken by a simple procedure through the Cyprus Land and Surveys Department. This can be done either by the buyer in person or by appointing a third party with a Power of Attorney.

All properties have title deeds that are issued by the Cyprus Land Registry Department, a few years after the project is completed. For properties that are under construction there is no title deed and therefore, in this case, the buyer will deposit the contract of sale to the Land Registry to safeguard ownership.

Real estate transfer fees must be paid in order to transfer freehold ownership to the purchaser. See the section below for general information on property taxation.

   
  Property taxation

A) Transfer fees: The conveyance of immovable property is subject to a transfer fee based on the sale price or the market value of the property. These rates start from 3 percent on the first CY£50,000 of the market value, 5 percent on any price between CY£50,000 and CY£100,000; and 8% on any price above CY£100,000 (see table below). It has to be noted that when the purchase is made in joint names the effective value of property is halved.

Value of property (CYP)
Transfer fee rate (%)
up to 50,000
3
from 50,001 to 100,000
5
over 100,001
8

B) Capital Gains Tax: Capital Gains Tax is payable at a rate of 20% on gains made from the disposal of immovable property with the first 10,000 CY Pounds being exempt for each person (one-off only). Furthermore, if the owner disposes his dwelling house and has been residing in it for the last five years continuously, he is entitled to CY 50,000 exemption. The inflation rate for the period owning the property is also exempt.

C) Immovable Property Tax: Any immovable property whose value exceeds CY £100,000 is subject to annual tax, which is between 2.5% and 4% in proportion to the property value as shown in the table below. Certain immovable properties are exempt.

Value of property (CYP)
Annual Property tax (% per thousand)
up to 100,000
Exempt
from 100,001 to 250,000
2.5
250,001 to 500,000
3.5
over 500,000
4.0

D) Stamp Duty: The purchaser is liable for the payment of the stamp duty at a rate of 1.5 % per thousand up to the value of CYP 100,000 and thereafter at the rate of 2% per thousand. This should be paid within 30 days of signing the contract and purchasers are strongly recommended to pay this fee and deposit the contract of sale to the Land Registry for properties with no title deeds for their own security.

E) Local Authorities Taxes: Various minor taxes may be imposed by local authorities for refuse collection, sewage, and other basic utilities such as street lighting and cleaning etc. these fees vary according to the size of the property and are approximately around CYP 50 -150. top

  Selling your property

We undertake everything that related to selling your property; repairs, maintenance, marketing and promotion. We will be happy to include your property in a marketing campaign that amongst other include:

Listing on our online and frequently updated website
Newspaper Advertising
Agency network listing (through our collaborators internationally)
Property magazines
Company brochures

All properties are advertised free of charge for a period agreed with clients. Usually, exclusivity for the sale of a property is granted to us for a maximum period of 3-4 months until the sale is completed.
top

   
  FAQ (Frequently Asked Questions)

How can a prospective purchaser view the properties advertised ?

We will assist you in the best possible way to make thinks easy for you. We can assist you book your ticket, make accommodation arrangements and even arrange to pick you up from the airport. Our services also include trips to the chosen properties and any other assistance you might need. The first thing to do is to arrange an appointment before hand, and we will be delighted to meet you.

What properties can a non-Cypriot acquire?

In brief, buying a property in Cyprus is easy. As a non-Cypriot you are entitled to purchase a freehold property for your own use as follows:

A) An apartment or a house.
B) A villa on a site not exceeding 4,014 sq.metres.
C) A piece of land not exceeding 4,014 sq.metres provided that a residence will be erected for owner occupation soon.
D) Offshore entities can buy/built office or work space.
E) A second home may be allowed depending on the type and use of it (i.e. a holiday home in addition to a permanent home in the capital city).
F) Acquisition of leases of more than 33 years duration have the same treatment and restrictions as buying freehold properties.
G) European citizens currently have the same limitations. However, EU members will be treated as local residents soon after Cyprus EU membership.

Which properties have title deeds?

All properties have title deeds and these are issued by the Cyprus Land Registry Department, a few years after the project is completed. For properties that are under construction there is no title deed and in this case the buyer will deposit the contract of sale to the Land Registry to safeguard ownership.

Can a loan be obtained from a financial institution locally?

A loan can be easily obtained from any major financial institution here in Cyprus in various currencies. Normally a 30% contribution from the lender is required and the 70% can be financed through mortgage. Interest rates vary but as a rule of thumb these are approximately 2% - 2.5% above the base rate (LIBOR rate) with repayment periods up to 15 to 20 years subject to the case.

What documents are required to complete the freehold transfer of ownership (i.e. conveyancing procedure)?

For a property to be conveyed the following documents are needed:

1. Sale of Contract (if any)
2. Council of Ministers Approval (permission to purchase)
3. The property's title deeds (if any)
4. Written confirmation from the Central Bank of Cyprus that purchase is done by foreign funds.
5. Confirmation that all municipal/local authorities taxes are paid.

What are the services offered by us and why should someone buy from us?

We are one of the largest property consultancy firms in Cyprus. It was established in 1981 and the firm is now active in all Real Estate Activities and Chartered Surveying Practice. The company has an excellent track record based on a strong professional ethic and a reputation for integrity and quality of service. It has links and associates in Cyprus, the UK and Greece. We also offer a wide selection of properties from developers with a proven track record. As we increasingly extend our activities and services from property to the broader areas of business strategy and consultancy we believe that we are the best in our field. Our firm currently deals with:

Real estate agency (sales, acquisitions and lettings of properties).
Property valuation.
Property development and development funding.
Valuations and feasibility studies.
Portfolio management.
Marketing and Promotion of Properties.
Property Taxation Advice.
Preparing and executing Property Contracts and Conveyancing

In addition, the firm provides the following important services in order to secure the interests of our clients:

Legal searches of properties to secure a clean title with no legal or other hidden problems.
Professional Indemnity Insurance covering every client up to the amount of US$ 300.000.
Full support throughout and after the transactions.

Finally, our firm has as a primary target the client, investor or collaborator to meet in our premises a friend, a proper consultant as well as a person that can fully trust. top

 

Company Profile | Home Search | Plot Search | Land Search | Projects | Contacts

Disclaimer
Copyright © Datalogic Consultants Ltd 2006