Cyprus FAQs
Q. Can I get Finance?
A. Finance is available from all major banks in Cyprus (up to 80% of the LTV). Account opening procedures are relatively straight forward. An account will be opened for you by the bank that you arrange your mortgage with.
Q. As a non-Cypriot what am I allowed to buy?
A. The buying process in Cyprus is relatively easy and straight forward. As a non-Cypriot, you are entitled to buy a freehold property for your personal use either:-
a) A villa on a building site not exceeding 4014 sq.m (3 acres)
b) An apartment or a house or
c) A piece of land not exceeding 4014 sq.m for the purpose of erecting a house within a reasonable time frame.
Q. What are the prices and terms of payment?
A. Prices depend on size, location and specifications. For more information please contact us.
Banks can offer mortgage facilities in connection with the purchase of the property. The maximum amount that can be borrowed is the equivalent of 80% of the purchase price. There is also an additional arrangement fee of 1% payable on the amount of the advance which is usually added to the mortgage.
Q. How do I transfer the property once purchased and what are the costs involved?
A. Transfer of ownership takes place by a simple process of registration at the Land Registry Office and the issuing of a title deed after completion and delivery. This can be done either by you personally or by a Power of Attorney to your solicitor.
A pre-requisite for registration, in the case of non-Cypriots, is evidence that the property has been paid for with foreign exchange and approval by the Council of Ministers of Purchaser's application to buy property in Cyprus.
However, before the registration of the completed property the purchaser should pay the transfer fees, which are payable to the Land Registry office. The transfer fees are charged on a graduated scale. The transfer fees are:-
|
3% on purchase prices upto
|
CYP 50,000
|
|
5% on purchase prices from
|
CYP 50,000 to CYP 100,000
|
|
8% on purchase prices over
|
CYP 100,000
|
|
For example if the purchase price is
|
CYP 70,000
|
|
The first CYP 50,000 3% =
|
CYP 1,500
|
|
The next CYP 20,000 5% =
|
CYP 1,000
|
|
Total =
|
CYP 2,500
|
Q. If I purchase a flat/apartment, what expenses would I have to pay?
A. Annual Immovable Property Tax is imposed by the government and is currently under review. Immovable Property Tax is imposed on the market value as at 1st January 1980 and applies to the immovable property owned by the taxpayer on 1st January of each year. The Immovable Property Tax is payable on 30 September of each year. It is imposed on both individuals and legal persons.
The tax is imposed by the government and the system is under review at the present time and it is not possible to say what taxes will be ultimately payable on off plan properties. The current rates are set out below:-
|
Purchase Price
|
% Payable
|
Cumulative Property Tax (CYP)
|
|
CYP 0 - 100,000
|
0.0%
|
CYP 0
|
|
CYP 100,000 - 250,000
|
2.5%
|
CYP 375
|
|
CYP 250,000 - 500,000
|
3.5%
|
CYP 1250
|
|
CYP 500,000 and above
|
4.0%
|
|
Buyers should be aware that for properties under construction, which do not have a separate Title Deed, the developer is likely to charge a contribution towards annual property tax even though the specific property is under the value set for property tax to apply. Why is this? The developer is charged annual property tax on the land upon which the development will be built because the value of the land makes it eligible for the tax. The developer then seeks to recover the tax from the buyers by dividing the total tax.
Unlike most countries in Europe, in Cyprus there are no property rates. If a person has properties registered on his name where the market value exceeds
The owner, apart from the expenses of electricity, water and telephone for which there are separate meters, has to meet a proportion of the common expenses e.g. for the lighting and cleaning of the common facilities and the maintenance of the lift (and of course the upkeep of a garden and a swimming pool where there is one). Common expenses are comparatively insignificant - for a 2-bedroom flat they do not normally exceed £ 25 Cyprus pounds per month on average. Common expenses administration can be arranged by a clients committee.
Q. Are there any hidden costs or charges such as legal?
A. This depends to a very large extent on you the purchaser. The legal system in Cyprus is similar to the British legal system.
Q. Can I take out insurance on my property?
A. Yes. We recommend that you take this out. There are companies who will issue cover for fire and earthquake damage.
* All information provided above should be used as a guideline only, and can vary with regard to individual circumstances.
| 
