Legal system
The legal system in Cyprus is mainly based upon the British Legal System. The Cyprus Land Registry is probably one of the most advanced and reliable systems in the world. Purchasers of property in Cypn_is will therefore be far more secure, with regard to their Title Deeds, than they might be in another country. Furthermore, legal fees/costs are reasonable and much lower than in other European countries. All contract and other paperwork is in English.

How much property can be purchased?
As an EU citizen there is no longer any restrictions on how many properties you may own if you register them in a company.

Approval of the Authorities of the Republic of Cyprus
Having signed a "Contract of Sale" for your property, as a formal procedure, it will be necessary to make an application to the Authorities of the Republic of Cyprus to grant that a non-Cypriot may acquire immovable property. This procedure may take up to three months or more, but in the meantime, there is no restriction in taking possession of the property. The main information required for completing the application is:

Personal details of the applicant(s) and their financial standing

Particulars of the property

Particulars of the present owner, the "Contract of Sale" & terms of payment

The way of acquisition, i.e., whether Freehold, Long Lease, by Share etc.

 

Mortgage and Finance
All commercial banks in Cyprus offer mortgage facilities. Loans can be in a chosen currency and the amounts range from 60-70% of the value of the property, with repayment periods repayment period up to 15 years (age related).

Taxes payable
Immovable Property Tax.
The registered owner of the property is liable to an annual immovable property tax, calculated on the market value of the property as at I" janUary 11,180. therefore is much lower than the current rate and is as follows:

Market Value (CYP)	Annual Tax	Total Tax per year (CYP)
Up to 100,000	Zero	Zero
100.001 500,000	2.00%	200 - 500
250,001 - 500,000	3.00%	500 -- 1,250
Over 500,000	3.50%	1,250 and over

Stamp Duty
Unless otherwise stipulated in the contract, the purchaser is liable for the once only payment of stamp duty at the rate of 1.5 per thousand of the value up to CYP 100, 000. Thereafter, the rate becomes 2.0 per thousand. Although the nonaffixing of stamps does not invalidate the contract, the stamp duty plus a fine will be payable when the document is produced to the Court or any Government department. In order to avoid the payment of a fine, which could be substantial, the documents should be stamped within 30 days of their signing.

Market Value (CYP)	Stamp Duty (CYP per thousand)	Total (CYP)
Up to 100,000	1.5	150
Over 100,000	2.00	200 and over

Land Transfer Tax
Property transfer fees are payable once only to the Land Registry Office either personally or by a Power of Attorney to your Solicitor. The amount payable is based on a sliding scale, as shown below and is borne by the purchaser. The fee is due when the Title Deeds are transferred into his/her name:

Purchase Amount (CYP)	Fee Payable	Total Fee (CYP)
0 - 50,000	3%	0 - 1500
50,001 - 100,000	5%	1500-4000
Over 100,001 and above	8%	4001 and above

Other possible, approx costs involved after purchase of property

Electricity connection CYP 75.00

Water connection CYP 32.00

Telephone connection CYP 100.00

The above amounts are approx deposits for security reasons only and are refundable with termination of the service.

Local Authority Rates - these are between CY50-150 per annum, depending upon the size of the property. This tax is for refuse collection, sewerage, street lighting etc. The basic utilities are payable individually in accordance with consumption and based on meter readings.
The electricity in Cyprus is 220-240 volts; appliances from Ireland can be used in Cyprus without an adaptor.

Household and Personal Effects
Having purchased a property, non-Cypriots are allowed to import all their household goods, furniture and personal effects - duty free! The only charge is a small fee levied on used electrical items, which is payable at the port, at the time of entry.

Acquiring the Title Deeds
The Title Deeds are transferred into the buyer's name as soon as they are issued by the Land Registry Department. The relevant cost is borne by the purchaser, as detailed in the Land Transfer Tax section (above). For the purchaser's protection, the Land Registry Department provides a simple and effective legal instrument called "Specific Performance". Once the "Contract of Sale" is signed and a deposit paid, the Contract is registered at the Land Registry. The Contract is then in the hands of the Land Registry and therefore cannot be leased, sold, transferred or mortgaged. This procedure protects the purchaser's ownership rights until the Title Deeds are issued and transferred into his name.

Buying in Cyprus today you are not simply ending up with a beautiful residence in the Mediterranean enjoying the local lifestyle and sunshine. But you benefit from your investment for many reasons:

Firstly prices of property compared to rest of Europe are still much lower therefore experts are predicting a rise in prices to fall in line with European levels.

The positioning of the island on the eastern edge of Europe has proved to be quite advantageous for offshore companies, who have already decided to use Cyprus as a base. This has created a huge market for rented properties thus maintaining high rental incomes. At the moment depending on the location of the property rented income is from 6-8% per annum of course if you have exceptional luxury villas or beach front properties it can be much higher.

Selling Property in Cyprus
When selling your property, any outstanding property taxes must have been paid and a certificate obtained from the Inland Revenue. Capital Gains Tax is payable at the rate of 20% on the gain with the first CY10, 000 (ten thousand Cyprus pounds) being exempt for each person. There is an indexation allowance and a further allowance regarding the transfer fees paid. There are double taxation agreements with most countries, contact us for more details.

Gains from the sale of the house are exempt up to CY50, 000 (fifty thousand Cyprus pounds) in total if the owner resides in it for at least 5 years prior to the sale. The sale proceeds can be repatriated immediately, including any amounts spent on improvements and/or additions to the property, which have been paid for with imported foreign currency. Profits can also be repatriated, but note should be taken of the exchange rate at the time of transfer of funds.