General questions
Making an appointment to view property couldn’t be simpler! A phone call, an e-mail message, a fax, a letter or even just calling into the office is all you need to do. You may also contact us using our website.
Cyprus has something for everyone, young and old and also the business entrepreneur. Cyprus has a European standard of living, a relatively low cost of living, a low crime environment, an excellent communication system, excellent professional services, and low tax for non-Cypriot residents and offshore companies.
Cyprus has double taxation treaties with most European countries as well as a lot of other countries throughout the world. For example, this means that U.K. citizens retiring in Cyprus can receive pensions and investment income free of U.K. income tax. This includes both public and private sector pensions. For furthur information on Cyprus Double Taxation Treaties please see Cyprus Inland Revenue website. Taxation is still low in Cyprus compared to other European countries despite recent tax reforms due to Cyprus’ accession to the E.U. You would be considered a resident if you live in Cyprus for more than a total of 183 days a year
Income 2010 Tax Rates % Tax Amount
Up to € 19,500 Nil ——
€19,501 – € 28,000 20% € 1,700
€ 28,001 – € 36,300 25% € 2,075
€ 36,301 & above 30%
The Tax Office in your local town in Cyprus will be happy to advise you on which option would be best for your personal circumstances.
Under current legislation, any Cypriot as well as E.U citizen who have their permanent residence in Cyprus are allowed to register immovable property in their names without any restrictions. The residential status is ascertained by the District Offices when a person resides in Cyprus for a total period of 183 days per year or more.
Since Cyprus joined the European Union (as of May 2004) most of the procedural restrictions upon buying property have been lifted for EU citizens. All the restrictions will eventually be lifted after April 2009. Until then EU citizens who are not permanent residents of Cyprus as well non -EU citizens are entitled to a freehold ownership of either an apartment, a house, or a building plot or land. In the case of EU citizens the property size is unlimited contrary to non EU citizens who may acquire property up to 4.014 square meters (the equivalent of three donums).
Further, in the case of E.U citizens who are not permanent residents of Cyprus as well as non E.U citizens wishing to acquire property in Cyprus, authorization is required from the Council of Ministers which is granted as a matter of course to all bona fide purchasers if there is proof that the purchase was with foreign funds, which were imported to Cyprus. The application must be submitted after the contract of sale is signed and it normally takes about 6-8 months to be issued. In the meantime, the purchasers can take possession of their property without restriction and live in it or rent it out as they are the legal owner of the property according to the law.
Legal entities established in E.U. that have their headquarters and registered office in Cyprus, do not require permission to buy any immovable property. Legal entities established in Cyprus and controlled by citizens of the E.U. require permission to buy immovable property in Cyprus as well as any other legal entities.
Most of the properties in Cyprus are freehold title. There is some leasehold property available for sale but you will be advised accordingly.
The biggest cost involved is the Land Transfer Tax. It works on a scale of fees as follows:
Value of Property Tax %
From 0 to € 85430 3%
€85431 to €170860 5%
€ 170861 upwards 8%.
Stamp duty is also payable at £1.50 per thousand on the purchase price of the property up to £100,000 CY. Thereafter the rate becomes £2.00 per thousand. You will also pay legal fees of approx. £1000 depending on the value of the property. This is money well spent. Good legal advice and representation is very highly recommended.
Immovable Property Tax – The registered owner of a property is liable for this annual tax and is based of the following scale:
Value of Property Annual Tax ( € per thousand)
Up to €170860 – Exempt
€170861- € 427,150 – 2.5
€ 427,151 -€ 854,300 – 3.5
Over € 854,300 – 4.0
Capital Gains Tax – This tax is applied at the rate of 20% on gains arising from the sale of immovable property. As in the U.K., there are certain expenditures which can be offset against the gains to reduce the tax paid. Also the following lifetime allowances are available to individuals: Allowances
– The first € 17086 of gains arising from the sale of any property
– The first € 85430 of gains arising from the sale of a house used by the owner for his own permanent habitation (subject to conditions).
The above allowances are not available separately. The other costs involved are: Electricity connection approx .€ 75, Water connection € 200 and Telephone connection €100. The above amounts are only security deposits, which are refundable with the termination of the service.
By securing an import permit from the Cyprus Veterinary Services, pets may be brought into Cyprus. They must be kept under house quarantine for six months or in a previously designated area where the Veterinary Services Department can inspect them at intervals.
This quarantine does not apply to pets when certain document/certificates such as the following are submitted:
– Examination certificate stating that pets were clinically examined 72 hours prior to exportation.
– Confirmation that the pets were kept in the exporting country since birth or the last six months prior to shipment, with no outbreak of rabies.
– Pets were treated against echinococcosis/hydatidosis prior to shipment.
– Pets were treated with an insecticidal preparation against ectoparasites prior to shipment.
Full information can be obtained from the Veterinary Services– Tel:+357 22 805240/1, Fax: +357 22 332803
These are just a few of the questions, which are normally raised by our clients. However, if you have any further queries, please contact us.