Level of taxes & fees which are attached to property, is one of most important factors for purchase decision. our company prepared for you information about every expenditure is coming with property.

NOTE: Currency is shown in Cyprus Pounds, as of the 1st January 08, Cyprus officially adopted the (€) euro, please use the figures below as a guide, correct figures will be available as soon as they are published.

Property acquisition:

Cyprus is the most popular overseas real estate in the Mediterranean. The legalities for property purchase are relatively simple. A governmental approval for buying property is required for foreigners, which is granted as a routine to all bona fide purchasers, if the following are met:

* No criminal record
* Annual income of CYP 12 000 (EUR 20,503.22)

Non Europeans are permitted to buy for personal use:

* An apartment
* A house
* A plot of land
* Each kind of property not exceeding 3 donums (4, 000 square metres)


Procedures:

A written application must be submitted by the non Europeans purchaser to the Council of Ministers to grant permission for acquiring immovable property in Cyprus. The application should be submitted after the sign of sale contract. The approval is granted to all bona fide purchasers, as a routine procedure.

Nominal application fee is CY ?150 (EUR 256.29), payable when permission is granted.

Transfer of ownership from vendor to purchaser is accomplished through the Cyprus Land Registry Office by a simple procedure, either by the purchaser in person, or by appointing a third party with a Power of Attorney.

For a non Cypriot purchaser, the prerequisite for registration is to provide evidence of payment for the property with foreign exchange, as well as the signed contract of sale.

Upon the issuance, the title deed will be registered in the name of the purchaser, and will be recorded in the Government archives, which are confidential and inaccessible.


Transfer Fees:

Transfer fees are a one-off payment borne by the purchaser and payable to the land registry in the district of your property’s location. The amount is based on a sliding scale as shown in the table below, and depends on the market value of your property on the date of purchase. The fee is due in cash when the title deeds are transferred into the purchaser’s name.

Transfer Fees based on Land Registry Office evaluation:

* Up to CYP 50 000 ( EUR 85,430.07) - 3% fees
* CYP 50 001 (EUR 85,431.78) - CY ?100 000 (EUR 170,860.14) - 5% fees
* Over CYP 100 000 (EUR 170,860.14) - 8% fees

For example:

Purchase price: CYP 85 000 ( EUR 145,231.12)
Fees: First CYP 50 000 ( EUR 85,430.07) x 3% = CYP 1 500 (EUR 2,562.90)
Next CYP 35 000 ( EUR 59,801.05) x 5% = CYP 1 750 (EUR 2,990.05)
Total Fees: = CYP 3 250 ( EUR 5,552.95) (3.82%)


Stamp Duty:

Stamp duty is due upon signing the contract.

Stamp duty rate:

* Up to the CYP 100 000 (EUR 170,860.14) - 0.15%
* Over CYP 100 000 (EUR 170,860.14) - 0,2%
For example:

Purchase price: CYP 150 000 ( EUR 256,290.22)
Stamp Duty; First CYP 100 000 ( EUR 170,860.14) x 0.15%= CYP 150 (EUR 256.29)
Next CYP 50 000 ( EUR 85,430.07 )x 0.2 % = CYP 100 (EUR 170.86) Total Fees: = CYP 250 (EUR 427.15)


Immovable Property Tax:

Per annum, pounds per thousand

* Up to CYP 100 000 (EUR 170,860.14)- Exempt *
* CYP 100 001 (EUR 170,861.85)- CYP 250 000 (EUR 427,150.36) - 2.5 ‰ approx. tax ammount CYP 375 (EUR 640,73)
* CYP 250 001 ( EUR 427,152.07) - CYP 500 000 (EUR 854,300.72) - 3.5 ‰
* Over CYP 500 000 (EUR 854,300.72)- 4.0 ‰


Municipal Authority Taxes:

These they levy an annual property tax at the rate of about CYP 20 (EUR 34.17)- CYP 40 (EUR 68.34) per year and they are for refuse collection, street lighting, sewerage etc.


Capital Gains Tax:

According to the Cyprus Law, should the purchaser decides to resell the property at a later stage, the full amount of the full paid for it in foreign exchange may be transferred abroad, as well as the equivalent of the full purchase price and any increase in value of the property. In addition to this allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Property sales are subject to Capital Gains Tax at the rate of 20% on the gain, however, the first CY ?10 000 (EUR 17,086.01) are tax exempt.

Gains from a disposal of a dwelling house are exempt up to CYP 50 000 (EUR 85,430.07), if the owner resides in it continuously for five years prior to disposal.


Tax Privileges:

Personal effects, household goods and furniture can be free of import duty, provided that they are for personal use. There is also an allowance for a duty free car, and retired couples enjoy the additional concession of two duty free cars.

Retirees who become residents in Cyprus are taxed on their pension from abroad at the rate of 5% for amount exceeding CYP 2 000 (EUR 3,417.20) annually. There is 0% on investment income (i.e. dividends and interest) brought into Cyprus. In special circumstances exemptions totaling up to CYP 4 000 (EUR 6,834.41) per person or CYP 8 000 (EUR 13,668.81) per couple may apply. Consequently, the total tax burden on alien residents is in practice often only 3%. Their total annual income up to CYP 10 000 (EUR 17,086.01) is tax exempt, as for all Cypriots.

Additionally, Cyprus has Double Taxation Treaties with many European and other countries. The main purpose of these treaties is the avoidance of double taxation of income earned in any of these countries.

Cyprus has double taxation treaties with: Austria, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, Finland, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Sweden, UK, USA and Yugoslavia.


Estate Duty / Inheritance Tax

These were abolished as of 1st January, 2000.


VAT

The VAT rate is 15% as of January 1st, 2003. 15% VAT is applied on Real Estate as of May 1st, 2004.


Local Authority Tax

Property taxes levied by the local authorities are in the range of CYP 30 ( EUR 51.26) - CYP 100 (EUR 170.86) p.a., depending on the size of the property. The tax covers the cost of refuse disposal, street lighting, etc.


Communal Expenses

Property taxes levied by the local authorities are in the range of CYP 30( EUR 51.26) - CYP 100 (EUR 170.86) p.a., depending on the size of the property. The tax covers the cost of refuse disposal, street lighting, etc.


Electricity & Water Supply

Utility bills for these services are payable to the appropriate authorities at fixed intervals throughout the year. They comprise a small standing charge and the individual comsumption per household. For electricity this is CYP 1.65 (EUR 2.82) every 2 months plus 5.5 (EUR 9.40)cents per kW/hr. Whilst the cost per property will vary, a rough guide for both might be approximately CYP 300.00 (EUR 512.58) p.a.

Financing options

The Central Bank of Cyprus requires that acquired property must be paid for with external funds. Bank transfers and personal cheques are accepted.

As a company, we are happy to discuss the individual needs for each prospective buyer with regard to methods of payment. Demonstrating maximum flexibility, Golden Land Developers Cyprus can propose a method of payment that matches your circumstances.

Golden Land Developers can arrange foreign currency loans for non-Cypriot citizens. Loan Conditions vary slightly from one bank to another, but generally, a loan for 70-80% of the property's value is granted, with a maximum repayment period up to 30 years (at loan maturity customer’s age must not exceed 70 years) and interest only options.


Terms of use/Privacy policy

The information, plans, photos and artists' impressions contained in this web site are for guidance only and do not constitute a representation or an offer to treat. The Developer reserves the right to effect changes as he may deem appropriate prior to Contract.
Customized Housing Solutions

If you are dreaming of a permanent or holiday house in Cyprus, we can make your dreams come true. We can design the best housing solution, customized to your needs.

Housing purpose: You can use the loan to buy a house, land, apartment or for home extensions/renovations or even for your business premises.

Loan amount: There is no maximum loan amount.

Contribution: The level of your contribution may vary and along with the required securities, the pricing of the loan will be determined. Usually, you may be required to contribute 20-30 % of the market value of the property but depending on your specific request, this percentage may be lower. For example, if the property that you will purchase is for your own use, as a permanent or holiday residence, then the Bank may finance up to 100 % of the market value of that property.

Currency: We can offer housing loans in Cyprus Pounds, Euro, Swiss Francs and in all major currencies.

Loans in Cyprus pounds: Fluctuating interest rate for the whole duration of the loan.

Loans in foreign currency: Fluctuating interest rate for the whole duration of the loan or Fixed interest rate for a fixed period of time.

Special product: housing loan in Euro, using 6 months Euribor, with no exchange commission.

Repayment period: A housing loan in Cyprus Pounds may be repaid of up to 35 years. For housing loan in Foreign currency, the repayment period may be up to 15 years. But, the installments of the loan may be as if the repayment period was up to 30 years and re-finance the remaining balance of the loan for an additional period of up to 20 years.

Repayment flexibility with three escalating stages in the instalment amount as follows:

1. Lower instalment for the first 5 years that covers the interest amount
2. Regular instalment for the next 5 years as calculated following a normal repayment schedule
3. Higher instalment for the remaining years of the loan, so as to cover the amount of capital that is not being repaid during the first period.

Grace period: If you are purchasing a property that is under construction, you have the option to start the repayment of your loan after the construction is completed (maximum period 12 months). During that period, you will only have to pay the accrued interest.

Pricing: The pricing of your loan will depend on the level of your contribution, the securities provided, the housing purpose and the currency of the loan. A margin of 1,75-2,50 % will apply above the base rate (if loan is in Cyprus Pounds) or above libor (if loan is in foreign currency).

Life Insurance: In order to release you and your family of the burden to repay the financing in case of unfortunate events (loss of life, overall disability, etc), the contracting and granting in favor of the Bank, of a life insurance, for an amount at least equal to the value of the loan, is necessary.

Property Insurance: To be trough with any contingency that may occur to your property (fire, blood, burglary, etc.), the property must be insured.

Proof of income: You will be asked to provide the Bank with proof of your income and reference of your Bank history.

Tax deductions: Any possible tax deduction on the loan interest for private residence are determined by the Tax Legislation and practice of the Cyprus Tax System. Details regarding the current legislation are available at the Department of Income Tax of the Ministry of Finance.

For more information, please contact our office.

Currency Exchange

Golden Land Developers works with leading foreign exchange companies that offer our clients:

* Express service
* Free transfers
* Security of Funds
* 24 Hour Service
* No Commission
* No Hidden Costs

Mortgages

Golden Land introduces potential clients to executives in the financial field. With Cyprus joining the European Union, arranging housing loans is easy and straight forward.

For more information & advices, please contact our office.

What is it about buying Cyprus property that appeals to so many Europeans especially the British? Perhaps it has something to do with the fact that Cyprus was a British Colony untill the 1960s and much of the English influence has remained. It is fair to say that compared to other parts of Greece and The Greek Islands Cyprus seems to have developed much quicker in terms of its modern infrastructure.

Most Cypriots speak English as a second language (its taught in all the schools.) All the road signs are in both Greek and English so getting around the Beautiful Island is easy especially using the modern motorway network that links all the main towns and holiday resorts. The Cypriot people are probably the friendliest you will ever meet anywhere, their lifestyle is very relaxed and laid back but nothing is ever to much trouble for them. They are very family orientated and outgoing so don't be surprised if they invite you to join them for a meal as soon as they meet you.

After the reserved attitude of the British they are a real breath of fresh air and for many people who visit Cyprus this is perhaps the biggest culture shock of all. The Cypriot people have had their share of adversity over the years but they still welcome visitors to their beautiful Island and treat everyone they meet with the greatest respect. They are also very hard working especially during the holiday season when they may put in twelve hours a day seven day a week or even more. They also have a remarkable ability to pace themselves when working in the long hot Cyprus summer. Many people have made the mistake of assuming that they are too laid back and that it is difficult to motivate them. This however is not the case it is just the way these hard working people pace themselves for the long hours in the heat.

The country itself is stunning with miles of beautiful coast line and authentic remote villages where life has continued in much the same way for generations. Where else could you ski in the mountains in the morning then swim in the sea in the afternoon? Cyprus also has a rich cultural heritage with influences from countless invading nations that have claimed this beautiful Island as their own including amongst others the ancient Egyptians and the roman empire. You will find an abundance of historical and archaeological places of interest to visit and I for one am still finding out new things about the countries history after visiting regularly since 1996.

Then of course there's the weather. Over 300 days of sunshine every year, clear blue skies and gentle sea breezes making for the perfect Mediterranean climate. The sea stays warm enough to bath in until the end of November and if the suns too hot for you in the summer you can always retreat up into the cool lush Troodas mountains. There is a very short winter in Cyprus which last from around the beginning of January until the end of February. This is when Cyprus receives Gods gift of rain on it's parched earth after the long hot summer months. The Cypriots love the rain and boy does it pour down, roads turn to rivers within minutes and the huge flat plains become lakes within a few hours.

There has never been a better time to purchase a property in Cyprus and prices look set to keep rising making them a great investment too. With so much going for it Cyprus is the ideal place to buy a holiday home or a place for your retirement. The U.K. and Cyprus also have a reciprocal tax arrangement and you can have your pensions paid there too. We ourselves have purchased several properties in Cyprus over the years and are more that happy to pass on the benefit of our experiences all of which I might add have been only positive.

Article Source: Kevinor Moore - Ezine Articles

Before you buy any property in Cyprus you should always seek the advice of an expert real estate agent and lawyer. In this regard, the following is a quick checklist of some of the basic things they should be checking:


1. Doing a land title search at the relevant District Land Office – this is done to make sure that the seller has a valid land title deed, which should also tell you whether there are any mortgages or other claims over the property.
2. If the property you are buying is still under construction, which many are, then your lawyer should be checking to see whether the project has the proper planning and building permits. Also, make sure the land title deed for the project has been split into individual deeds and not one deed for the whole project.
3. If you buy land to develop yourself, make sure your real estate agent checks that the land can be developed: for example, that it has easy access to a road; telephone, electricity and water facilities, etc.
4. If you are buying leasehold property, where the lease term will exceed 33 years, you’ll need to make an application to the Council of Ministers in much the same way as if you were buying freehold property – so make sure your lawyer does this.
5. Insofar as the contract is concerned, make sure that the contract contains provisions that.

* The sale/purchase is subject to you obtaining all the required permissions.
* Possession is taken upon execution of the contract, or completion of the project, whichever is the earlier.
* For the purchase of a flat, general use and maintenance rules are included in the contract.
* The contract contains an unwind/refund provision, in case you need to get out of the contract before you take possession of the property.
* There the property being purchased is a new development, the contract contain a warranty period for the. construction
* There the seller is a company, that the person signing the contract is authorized to do so.
* Whether the seller is a person or company, the contract has been witnessed by at least two witnesses of legal age.

Article Source: Mark Vurnum