Advice on buying Cyprus Property
Cyprus, is the 3rd largest Mediterranean island - covering 9,251 square kilometres, 240 km from west to east and 96 km from north to south - with a population of approximately 700,000.
Being at the cross-roads of three continents - Europe, Asia and Africa - it has one of the oldest histories of the world, dating back 9000 years.
Its strategic position, its wealth in forests and mineral deposits, as well as its skilled craftsmen, made it the prized possession of the powers of the day.
The island is served by approximately 30 major airlines, linking it to the four corners of the world through its international airports at Larnaca and Paphos.
Driving is on the left in Cyprus and distances between towns are relatively short, covered by a good network of modern roads.
A notable British presence remains to this day and Cyprus has become home to a large expat community (estimated at around 50,000), while British tourist trade accounts for the overwhelming majority of the country's tourism income.
A look at the Cypriot climate and its easy to see the attraction: average temperatures only dip below 70F (21C) between November and April and the country can boast on average 300 days of sunshine per year.
So how much property do you get for your money?
About 130,000 Cyprus Pounds (EUR224,000, GBP154,000) will buy you a detached three bedroom dwelling, although expect to pay more to get near the beach.
In the north, the equivalent property can be picked up for around CYP90,000, and prices here are rising fast, albeit from a low base. However, there are significant risks attached to buying in the North.
Compared to many other countries purchasing property in Cyprus by foreigners is relatively simple.
Non Cypriots are permitted to purchase (for their personal use) either:
an apartment,
a house or a villa on a site,
a piece of land.
The maximum allowed area is 4,013 square meters (an equivalent of 43,195 square feet)
Permission to transfer the property bought to the non-Cypriot's name must be sought from the Cyprus Council of Ministers. However this is granted more or less as a matter of course to all bona fide purchasers.
In the meantime, purchasers may take possession of the property without restriction.
The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable time after signing the contract of sale.
Property Registration / Transfer Fees
Real Estate Transfer tax-fees are necessary in order to transfer FREEHOLD ownership to the name of the purchaser.
This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been completed.
The Transferee is responsible for the tax payment.
There are a number of taxes that are associated with the purchase of property in Cyprus.
Real Estate Transfer Tax. This is necessary to transfer the freehold into the name of the buyer and is levied on a progressive scale starting at 5 above CYP75,000.
For residents there is an Immovable Property Tax based on the value of the property at a rate of 0.2 up to CYP500,000; and 0.35 on the first CYP100,000, and 0.2 to 0.5 and 80% of the value of the property with the term usually fixed at seven to ten years, although longer repayment periods can be negotiated.
As things stand, it would be very difficult to obtain a Cyprus mortgage from a non-Cyprus bank.
These guidelines are meant for guidance only and describe a straightforward purchase scenarios. However this information is not meant to replace proper legal advice, which we always insist you take.
John Everitt is a consultant to http://www.globespanproperty.com/ Globespan European property portal. Please visit http://www.globespanproperty.com/agents_directory.php our estate agents directory and http://www.globespanproperty.com/guides/cyprus.html this Cyprus buyers guide Alergia Alimentaria
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Being at the cross-roads of three continents - Europe, Asia and Africa - it has one of the oldest histories of the world, dating back 9000 years.
Its strategic position, its wealth in forests and mineral deposits, as well as its skilled craftsmen, made it the prized possession of the powers of the day.
The island is served by approximately 30 major airlines, linking it to the four corners of the world through its international airports at Larnaca and Paphos.
Driving is on the left in Cyprus and distances between towns are relatively short, covered by a good network of modern roads.
A notable British presence remains to this day and Cyprus has become home to a large expat community (estimated at around 50,000), while British tourist trade accounts for the overwhelming majority of the country's tourism income.
A look at the Cypriot climate and its easy to see the attraction: average temperatures only dip below 70F (21C) between November and April and the country can boast on average 300 days of sunshine per year.
So how much property do you get for your money?
About 130,000 Cyprus Pounds (EUR224,000, GBP154,000) will buy you a detached three bedroom dwelling, although expect to pay more to get near the beach.
In the north, the equivalent property can be picked up for around CYP90,000, and prices here are rising fast, albeit from a low base. However, there are significant risks attached to buying in the North.
Compared to many other countries purchasing property in Cyprus by foreigners is relatively simple.
Non Cypriots are permitted to purchase (for their personal use) either:
an apartment,
a house or a villa on a site,
a piece of land.
The maximum allowed area is 4,013 square meters (an equivalent of 43,195 square feet)
Permission to transfer the property bought to the non-Cypriot's name must be sought from the Cyprus Council of Ministers. However this is granted more or less as a matter of course to all bona fide purchasers.
In the meantime, purchasers may take possession of the property without restriction.
The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable time after signing the contract of sale.
Property Registration / Transfer Fees
Real Estate Transfer tax-fees are necessary in order to transfer FREEHOLD ownership to the name of the purchaser.
This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been completed.
The Transferee is responsible for the tax payment.
There are a number of taxes that are associated with the purchase of property in Cyprus.
Real Estate Transfer Tax. This is necessary to transfer the freehold into the name of the buyer and is levied on a progressive scale starting at 5 above CYP75,000.
For residents there is an Immovable Property Tax based on the value of the property at a rate of 0.2 up to CYP500,000; and 0.35 on the first CYP100,000, and 0.2 to 0.5 and 80% of the value of the property with the term usually fixed at seven to ten years, although longer repayment periods can be negotiated.
As things stand, it would be very difficult to obtain a Cyprus mortgage from a non-Cyprus bank.
These guidelines are meant for guidance only and describe a straightforward purchase scenarios. However this information is not meant to replace proper legal advice, which we always insist you take.
John Everitt is a consultant to http://www.globespanproperty.com/ Globespan European property portal. Please visit http://www.globespanproperty.com/agents_directory.php our estate agents directory and http://www.globespanproperty.com/guides/cyprus.html this Cyprus buyers guide Alergia Alimentaria
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