If you are a European Citizen and your domicile is in Europe and you wish to purchase a second house (in Cyprus), you will need to apply to the Council of Ministers. If you are a European Citizen and your domicile is in Europe and you wish to purchase a piece of land or a Shop or any other property (but not an apartment or a house) then you will not be required to apply to the Council of Ministers.

A European Citizen that wishes to register a Company in Cyprus that deals with the development of land can set up such a Company and purchase property of any kind and/or any quantity with no restriction. In such a case the registered office of the company has to be in Cyprus and the Director and Secretary (i.e. the management) of the Company must have their domicile in Cyprus.
Contracts of Sale are prepared in written form, mainly for the protection of the Purchaser. The Contract of Sale is stamped at the Tax Office and must be lodged with the Land Registry Office within two months from the date of the signing of the Contract.

The protection of the legal rights of the Purchaser, in the event that the Vendor does not fulfill the terms of the Contract of Sale, are fully covered since the Contract of Sale exists and is deposited at the Land Registry Office. Since the Contract of Sale is deposited at the Land Registry Office, the Vendor cannot sell the Property to a third party. The Purchaser may secure an order from the Court ordering the Vendor to transfer and register the Property into the name of the Purchaser.

From the moment that a Contract of Sale is signed the Purchaser can make a loan from a Commercial Bank in Cyprus with a nominal interest of up to 9% per annum. Providing that the Purchaser has the approval of the Council of Ministers, and all the obligations of the Contract of Sale are fulfilled, then the Property will be transferred and registered to the Purchaser after the final approval for the Property is granted from the Authorities.

A Property is usually transferred and registered in the name of the Purchaser 2-3 years after the date that the Property is delivered to the Purchaser, if the Property is under Construction.

TRANSFER FEES
For property up to CY£50,000 the transfer fees are 3%.
For property from CY£50.000 – CY£100,000 the transfer fees are 5%.
And for property more than CY£100,000 the transfer fees are 8%.

Other expenses will be as follows:
The Local Taxes (i.e. possession Taxes) for a Property around CY£150,000 will be approx CY£100 annually.

DUTY STAMPS
Duty Stamps are paid at the Tax Office and are as follows:
a) 1.5% per CY£1000 for Property up to CY£100,000
b) 2% per CY£1000 for Property more than CY£100,000
The deposit Fees of the Contract of Sale at the Land Registry Office, are CY£1 per Contract.

OTHER CHARGES
1. Payment of water and electricity will depend on consumption.
2. Payment for cleaning of the area will depend on the order of the Local Authorities, but is usually approx. CY£50 – CY£100, per annum.
3. Municipal taxes are approx. CY£20 – CY£50, per annum.
4. In case of the purchase of a flat in a multistory building, payments are established for the communal areas, such as the lift, stairs and platforms, swimming pool, etc. The value varies subject to the type and size of the property.

BUYING PROPERTY IN CYPRUS

STEPS TO FOLLOW:

1. Preparation of the Contract of Sale.
2. Signing of the Contract of Sale.
3. Stamping of the Contract of Sale, at the Tax Office which must be done within 30 days otherwise there will be a penalty.
4. Logging of the Contract of Sale at the District Land Registry Office - within 60 days from the day of the signing of the Contract of Sale.
5. Application to the Council of Ministers to obtain the necessary ‘permission’ to acquire Property in Cyprus. This Application is easy to make and includes the personal details of the applicant, the financial standing and other details of the Property being purchased.

TAX NOTES
The annual Property Ownership Tax, imposed by the Government is approximately CY£ 60 – CY£120, per annum. The Municipal Authorities Annual Property Tax for services rendered, are at the rate of approx CY£20 – CY£30 per annum. Property Sales are subject to Capital Gains Tax at the rate of 20% on the gain. However, the first CY£ 10,000 per person is exempt and there is an indexation allowance. If one can prove that he has been permanently residing in the Property for the five years previous to the Purchase, then the exempted amount is CY£50,000 per person. Inheritance Tax does not exist in Cyprus any more.

Notes:
1. All the above information may be subject to change. Therefore, we recommend that all the above figures and details be checked by the Purchaser, prior to signing.
2. Should you require any further information, please get in touch with our Legal Advisor Mr. Nestoras Nikphorou
Contact details as follows:

Main Office :
1 Gladstonos Str
Panayiotio Building
2nd Floor, Offices 201 & 205
6023 Larnaca
Cyprus
Tel.+ 357 24 625625
Fax.+ 357 24 625626
Mob. + 357 99682424
nikiphor@cytanet.com.cy

Branch
17 Demokratias Str
Minides Building, Flat 6
P.O.Box 30041
5340 Ayia Napa
Cyprus
Tel.+357 23 724343
Fax.+357 23724342
Mob.+357 99682424
nikiphor.napa@cytanet.com.cy