Cyprus Property Buyers Guide

Buying property for sale in Cyprus should be a straightforward process in many ways no different to that in the UK, as broadly speaking the Cypriot legal system is based on that of Great Britain. Arena Estates will ensure that the best advice given throughout the purchase process. As an emerging market with exciting capital growth potential it is important to ensure that the best investment opportunities are provided as soon as they become available. By working with a reputable and experienced real estate agent such as Arena Estates, we will show you the widest available selection of new and re-sale Cyprus properties with the strongest potential for capital growth. This page of our website is dedicated to providing important information needed when considering the purchase of Cyprus property for sale in the Greek speaking part of the island of Cyprus. The information contained below is meant as a guide only and further research on the part of the buyer is advised. Obviously exchange rates and other figures outlined are subject to change.

Cyprus Background Information

Cyprus Population: 780,133 (July 2005 est.)

Language: Greek + Turkish (Although English is widely spoken)

Currency: Cyprus Pound
Exchange rates 1 CP – 0.57 € 1 CP – 0.46 $ US 1 CP – 0.84 Pounds Sterling

Choosing a Location

As the old adage goes location, location, location… so consider the location first and foremost. Decide on a particular area where you think you will be happy spending a lot of your time. Research the area to find out what it is like in different seasons, what facilitates are available and the travel times to different places. And ask yourself, would you genuinely be happy living there?

Let Arena Estates do as much of the legwork as possible, we can advise you on the most popular areas for buying property in Cyprus and what you can realistically expect for your budget.

Choosing a Real Estate Agent

It is important to choose an experienced and competent real estate agent who will ensure your interests are looked after and who can provide a wide selection of properties that meet your criteria within the budget you have available. Arena Estates has years of experience and a long list of satisfied customers. We have also invested ourselves in Cyprus property and have broad market knowledge and experience.

Deposit

Remember that buying property in Cyprus is a sellers market and it is often essential to move quickly to secure the desired property.

Appointing a lawyer

In an emerging market such as Cyprus it is essential to work with an experienced lawyer to ensure your interests are taken care of. Arena Estates can advise on reputable English speaking Cypriot lawyers.

Finance

Mortgages are available from the major banks for example the Bank of Cyprus, Cyprus Popular Bank and Hellenic Bank.

Mortgages are available for between 60 –80% of the value of the property and are available in various foreign currencies and various easy repayment models. Arena Estates can advise you on the best mortgage and provider at the time of purchase.

Buying process

Buying a property is straightforward in Cyprus, all properties are bought freehold. Taxation and inflation are low and the legal system is loosely based on the English system.

After having an offer accepted the buyer needs a written contract of sale to be stamped and lodged at the land registry office. This document give the buyer legal charge of the property up until the title deeds are transferred. The contract of sale must be lodged at the land registry within two months of signing.

Non-Cypriots will need to apply to the ministry of the interior for permission to own immovable property on the island.

At the time of signing the contract, the buyer is liable to pay stamp duties amounting to 15 cents per C£100.00 and then at the rate of 20 cents per C£100 for any purchase in excess of C£100.000.

Upon transfer of the freehold title of the property and registration in the purchaser’s name the following transfer fees are payable by the purchaser.

From C£1 - C£50.000 3%
C£ 50.001- C£100.000 5%
C£100.001 and above 8%

Where properties are bought in joint names these thresholds are doubled.
Above duties and transfer fees are payable once only.

Summary of Costs

On Signing
Stamp duties 1.5% or 2% of contract price.
Stamped copy of sales contract (2) £2.

On delivery - Settlement of any extras
Stamp duties for bills of exchange (if any) £0,50 each.

On transfer - Legal fees for Council of Ministers Approval
Roughly £200. In addition every year the owner of the property should pay the various Property and Municipality taxes, which all together will be around £150 per year.

Common Expenses
Around £150 annually.
Case studies Property of a value of 90,000 Cyprus Pounds – Approximate purchasing costs 6.25%
Property of a value of 150,000 Cyprus Pounds – Approximate purchasing costs 10.2%

Taxation
There is a double taxation agreement between Cyprus, the UK, and many other countries. These treaties give expatriates retiring in Cyprus, the opportunity to get taxed on public, private or insurance pensions actually remitted annually to Cyprus on a flat basis of 5%. It is possible that with exemptions expatriates are often taxed at only 3% of their annual income actually transferred to Cyprus.

For more information on the tax implications of purchasing Cyprus property or should you have any queries relating to property investment in Cyprus, Spain or Hungary please contact +36 1 266 5968 or e-mail info@arenaestates.com and one of our experienced advisors will be in touch as soon as possible.