Buying Property in Cyprus
Prices
of new developments are set by the builder, so whether you buy direct or
through an agent, the price will remain the same. Buying property in
Cyprus through an established company has several advantages:
(a) you will get to see a wider range of properties that match your criteria than if you went with just one developer;
(b) You will have the benefit of being able to deal with our head office back in the UK, and
(c) the possibility of any misunderstandings between yourself and any developer/Cypriot agents will be eliminated.
To buy a property in Cyprus, you would need to have around 30% of the purchase price available within 4-6 weeks of putting down a reservation deposit (CY£2,000/ £2,333). On an off plan property that will not be ready immediately, you would be able to make arrangements to make stage payments throughout the build. Before entering into any contract, make sure of the terms and the amounts due.
Should you be relocating permanently and selling a UK home to do so, renting in Cyprus is fairly cheap and easily offset by the increase in the value of the property, should your home sell before your new property is ready.
Mortgages of up to 70% are available in either CY £ or Euros, but the euro option is usually the least expensive.
At present, permission is needed from the Council of Ministers for foreigners to buy property in Cyprus, however all permissions are granted. Permission must be submitted in writing along with a copy of the sale agreement, income statements, three photos and a passport. Should you wish to buy a second property in Cyprus, this would need to be purchased in the name of a spouse or children as only one property can be owned by the same person.
A solicitor can act on your behalf for each stage payment, and even on completion should you not wish to return to Cyprus each time.
The banking system closely follows that of the UK, and non-residents can open accounts in foreign or local currencies.
Legal Fees
The lawyers legal fees for buying property in Cyprus are approximately CY £300-£500. Stamp duty is payable at the time of signing the contract, at the rate of CY£1.50 per CY £1,000. There is no inheritance tax. Transfer tax is charged on the value of the property - i.e. up to CY£50,000 = 3%, between CY £50,000 - £100,000 = 5% and over CY£100,000 = 8%.
Taxes
Non Cypriot's residing in Cyprus pay an income tax of just 5%. There are no tax duties on one car, and retired couples can own two 'duty free' cars. Compared with other EU countries, Cyprus offers a distinct benefit in the form of double taxation treaties.
As the financial growth of the Island increases, so will property prices which have already seen a healthy increase. Buying property in Cyprus is therefore going to prove a worthwhile investment in the years to come.
Cyprus | Towns & Resorts >>
We are able to offer some of the best property for sale in Cyprus - Villas, apartments, townhouses and bungalows starting from as little as 72,744 Euros in top destinations such as Paphos, Larnaca, and Limassol
