Property Sales Polis Western Cyprus | Buyers Guide

Buyers Guide

General Information

Buying a property is straight forward in Cyprus: all properties are freehold. Taxation and inflation are low, importing used personal effects and house hold goods is duty free and the legal system is based on the English system.

Lawyers

Although the legal framework in Cyprus is very similar to other countries, the regulation of Lawyers is certainly not. Beware of any company promoting a lawyer and always seek personal recommendation wherever possible. Unlike most countries, there is no independently chartered legal regulator for lawyers in Cyprus.

Surveys

Contrary to what many people will tell you in Cyprus, chartered surveyors are available in Cyprus for all types of properties. We strongly advise all buyers to undertake a survey through a certified company. As with lawyers it is advisable to ensure the surveyor is truely independent (as some are estate agents as well) and come with personal recommendations.

Taxation

Double taxation treaties are in force between Cyprus and the UK and many other countries. These give expatriates retiring in Cyprus the opportunity to get taxed on public, private or insurance pensions actually remitted annually to Cyprus on flat basis of 5%. With certain available exemptions most expatriates are often taxed at only 3% of their annual income actually transferred to Cyprus.

The Buying Process

Reservation Fee

Once you have found a property and the offer has been accepted you will need top pay a reservation fee to reserve the property, stop it being marketed and allow time for a contract to be agreed.

Deposit

When a contract has been agreed and is ready to sign a deposit needs to be paid, this is subject to negotiation and can be up to 20% of the agreed purchase price

Transfer of Ownership

Transfer of ownership from seller to buyer is a simple procedure through the Cyprus Land Registry Office by either the buyer in person or by appointing a third party with Power of Attorney. Upon transfer of the property and registration into the purchasers name, the district land registry office will charge transfer fees, which are based on the market value of the property being purchased shown below:

Property Price

Rate

Fee

Accumulated Fees

First €85,000

1.5%

€1,225

€1,225

€85,001 - €170,000

2.5%

€2,125

€3,350

Over €170,000

4%

 

 

Note : Where more that one person is buying the property each person gets the same allowance

Stamp Duty

Stamp duty is paid within 30 days of signing the contract. Your solicitor will deal with this. The buyer is liable to pay stamp duty at the rate of €1.50 per thousand up to the value of €100,000 and €2.00 per thousand for any amount above that. Thereafter, the contract is officially recognised as an authentic and valid contract upon presentation to the valid authorities.

Residency and Passports

Cypriot Passports

Obtaining a Cypriot Passport


    Non-Cypriot citizens may apply for the acquisition of a Cypriot Passport / EU Citizenship through the purchase of real estate in Cyprus
  • The investment in real estate is the preferred route of the majority of the applicants for a Cypriot Passport / EU Citizenship.
  • A very simple and straight-forward procedure.
  • It takes approximately 6 months for the procedure to be completed.

Financial Criteria

  • Investors can apply for Cyprus Citizenship by submitting a stand-alone application, upon making an investment which must be retained for a period of three years.
  • The applicant must have invested at least €2 million in one or more residential properties, provided that the value of one of the properties is of at least €500.000 (excluding VAT), which must be kept as the permanent residence of the investor in Cyprus.

Benefits of Cypriot Passport

  • Free movement within the EU: travel, live, work.
  • Travel visa-free to more than 150 countries.
  • Passed on to family members: spouse and dependent children.
  • The investor does not become a tax resident, unless he / she spends more than 183 days in a calendar year in Cyprus.
  • Not necessary to reside in Cyprus before or after the obtainment of the passport.
  • The Republic of Cyprus allows investors to keep their original passport.
  • No need to pass a language test.
  • The investors have the right to rent the permanent residence in Cyprus.
  • The investors have the right to sell the permanent residence in Cyprus, given that another permanent residence will be purchased.
  • The applicant's parents are also entitled to apply for Cyprus Citizenship provided that they own a lifetime residence of at least €500.000 (excluding VAT). The application is submitted after the investor had acquired the Cypriot citizenship.

To find out more about the Cypriot passport  or to receive a property proposal based on your preferences, please contact us.

Tel: 00 357 26 323 976

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