Property Investment in Cyprus

Simply Cyprus has the experience to provide you with guidance and advice when purchasing a Paphos investment property in Cyprus. Paphos has all kinds of villas, beach villas and property for sale that would be ideally suited to providing a good return on investment. Simply Cyprus has access to much of the property that is available for sale in Paphos and can help you find your dream renovated properties in Cyprus. You can find further details about every resale property we can provide in Paphos by consulting these pages. If you would like advice concerning Paphos and the most ideal locations in which to buy a property investment, feel free to contact us.

Polis is a very picturesque town on Cyprus' northwest coast and about 30 minutes drive from Paphos. Simply Cyprus has access to a wide variety of property in and around Polis. We can provide you with advice and guidance concerning taxation, where to buy and of course the purchasing procedures of Cyprus. You can find further details about each property that we have available in Polis by consulting the main pages of this site.

The legal system in Cyprus is mainly based on the Anglo - Saxon legal system. The contracts can be written in the English language, especially when one of the parties is a foreigner.

Cyprus has one of the most advanced and effective Land Registry systems in the world.

Those who are interested in buying property in Cyprus will find below some useful information about the procedures, the transfer fees, taxes and other matters.

The Procedure In Brief

According to Cyprus Law the purchasers need a written contract of sale, which will be stamped and lodged at the Land Registry Office for Specific Performance purposes. This gives the purchasers the security of a legal charge over the property, which will remain up until the time of transfer of the title deeds to them. The purchasers must lodge the contract of sale at the Land Registry Office within two months from the date of signing. Otherwise the purchasers will not be able to specifically enforce the transfer of the property to them through the Court, but will only have a claim in damages for breach of contract, in the even that the Vendor fails to transfer title to them.

Non-Cypriots must apply to the Ministry of Interior if they are not residents of Cyprus for permission to acquire immovable property in Cyprus or to the Immigration Department for a Temporary Residence Permit so as to be able to accept the transfer of the Title Deeds to their own names.

As soon as the above permissions have been obtained and as soon as a separate title deed has been issued by the Land Registry Office, the Purchasers will then be in a position to accept transfer of the title deed into their names.

Solicitors Services And Fees

Solicitors vary in the services they provide their clients with. When engaging a solicitor it is advisable to check what services they provide in relation to your house purchase and the costs.

Your solicitor should;-

• Draw up and advise you of the conditions of the Contract of Sale.
• Lodge the Contract of Sale in Land Registry for Specific Performance.
• Make an Application to the Council of Ministers on your behalf.
• Advise you and prepare a Will. (This need only cover your property in Cyprus) for each purchaser.
• Check with Land Registry for any mortgages on the land.
• Check that the title deeds are in the name of the person you are purchasing from.

If you are not permanently living in Cyprus it may be prudent to give your solicitor power of attorney to act and sign on your behalf. Of course this is always subject to you being consulted prior and agreeing to the proposal or action to be taken. Usually the solicitor will require confirmation of your acceptance of the proposal in writing, by e mail or fax is acceptable.

Your lawyer can also help you to open a bank account, arrange service connections, telephone, electric etc.

Legal fees for the purchase of property are between approximately CY£800 - 1500

Stamp Duty

The contract of sale must be duly stamped and the stamp duty is 1.5cents for every CY£10 of the purchase price up to CY£100,000 and 2cents for every CY£10 of the purchase price above CY£100,000. The stamp duty should be paid within 30 days of signing of the contract.

As an example

Property Price CY£100,000
Stamp Duty at 1.5cents for each CY£10 = CY£150
Total Stamp Duty on a purchase price of CY£100,000 = CY£150

Property Price CY£150,000
Stamp Duty at 1.5cents for each CY£10 for first CY£100,000 = CY£150
Stamp Duty at 2.0cents for each CY£10 above i.e. CY£50,000 = CY£100
Total Stamp Duty on purchase price of CY£150,000 = CY£250

Property Price CY£200,000
Stamp Duty at 1.5cents for each CY£10 for first CY£100,000 = CY£150
Stamp Duty at 2.0cents for each CY£10 above i.e. CY£100,000 = CY£200
Total Stamp Duty on purchase price of CY£200,000 = CY£350

Property Price CY£300,000
Stamp Duty at 1.5cents for each CY£10 for first CY£100,000 = CY£150
Stamp Duty at 2.0cents for each CY£10 above i.e. CY£200,000 = CY£400
Total Stamp Duty on purchase price of CY£300,000 = CY£550

Transfer Fees

On transfer of the title deed into the name of the Purchaser, the Purchaser must pay transfer fees to the Land Registry Office.

Transfer fee rates are as follows:

Value of Property (Cyprus Pounds)
up to 50,000	3%
between 50,001 - 100,000	5%
over 100,001	8%

For example if the value of the property is CY£ 120,000:

On the first	CY£ 50,000	3%	= CY£1,500
next	CY£ 50,000	5%	= CY£2,500
next	CY£ 20,000	8%	= CY£1,600
		Total	= CY£5,600

However, if the purchase is made in joint names the effective value for calculation is halved.

For example if the value of the property is CY£ 120,000, then the amount is CY£ 60,000 for each person.

On the first	CY£50,000	3%	= CY£1,500
next	CY£10,000	5%	= CY£500
		Total	= CY£2,000 each person

So a couple such as this would pay to the Land Registry Office the amount of CY£ 4,000 transfer fees, i.e. CY£ 1,600 less than a purchaser buying alone.

Immovable Property Tax

The immovable property tax is based upon the value of the property on the 1st of January 1980. If the value of the property at that time exceeds CY£ 100,000 then the registered owner of the property must pay immovable property tax according to the following scales:

Value of Property at 01/01/1980(Cyprus pounds)	Annual property tax
up to 100,000	Exempt
100,001 - 250,000	2,5 0/00
250,001 - 500,000	3,5 0/00
ver 500,001	4,0 0/00

Bank Loans To Non - Residents For Purchase Of Property

The commercial Banks in Cyprus are in a position to examine requests for loan facilities to non-residents for the purchase of immovable property in Cyprus. The loan repayments can be made in any foreign currency or local currency

Residence In Cyprus - Immigration

For non-Cypriots wishing to stay longer than three months in Cyprus it is preferable to attend at the Immigration Department within three months of their arrival to apply for a temporary residence permit.

A written application for permanent residence may be made directly to the Migration Department in Nicosia, but it should be noted that such applications take approximately 12 - 15 months to be granted.

Companies

Any Company that is registered in any member country of the European Union, and has its registered address and/or activities in Cyprus will be allowed to purchase immovable property in Cyprus without having to apply for the above said permissions/permits.