BUYING PROPERTY IN CYPRUS
PROPERTY PURCHASING LEGALITIES/ FINANCING
The legal system in Cyprus largely based on the British law and safeguards the buyer’s rights in many ways.
The procedure of purchasing a property in Cyprus is quite straight forward. A contract of sale is signed between the buyers and Antonis Zenios Developments Ltd. The certified contract can be deposited to the Land Registry, which safeguards the buyer in transferring the acquired property into his/ her name.
Payment terms are specified on each of our projects and vary according to the type and stage of the development.
Antonis Zenios Developments Ltd has excellent relationships with all the major banks in Cyprus, and can advise and assist clients to source and secure appropriate financing, structured to suit their individual needs and requirements.
Title Deeds
Transfer of ownership from Antonis Zenios Developments Ltd (seller) to the buyer is a simple procedure undertaken through the Land Registry Office.
Antonis Zenios Developments Ltd guarantee’s the issue of the title deeds and has an excellent record for the timeframe for this process.
Taxes
1. VAT- Vat is charged at the rate of 19% and at the reduced rate of 5% for properties purchased by permanent residents of Cyprus, provided that the property will be used as the main residence.
2. Stamp Duty- a one – off stamp duty applied to the buyer of the property and payable to the Land Registry.
3. Property Transfer fees- upon the transfer of the property to the buyer’s name, the Land Registry office will charge transfer fees at the value of-
Property value up to 85,000€- 3%
85,000€- 170,000€- 5%
Over 170,000€- 8%
Important note- The Cyprus Parliament has announced the abolishment or reduction of property transfer fees until the end of 2016 - exemption from transfer fees if the property has been subject to Vat. In the case that the transaction is not subject to Vat, the current legislation provides for an exemption of 50% of the transfer fees.
4. Immovable Property Tax- this annual imposed tax is calculated on the market value of the property as on 1st January 1980.
| Up to €40,000 | 0.60% |
| €40,001 - €120,000 | 0.80% |
| €120,001 - €170,000 | 0.90% |
| €170,001 - €300,000 | 1.10% |
| €300,001 - €500,000 | 1.30% |
| €500,001 - €800,000 | 1.50% |
| €800,001 - €3,000,000 | 1.70% |
| Over €3,000,001 | 1.90% |
5. Local Authority Tax- Levied by the Local Authorities these are payable annually and may vary depending on the site of the property.
PERMANENT RESIDENCE- Category F
Non European citizens can purchase one or two properties (residence) for himself or/ and his family of a total value of 300,000€ plus VAT, thus making them applicable for Cyprus Permanent Residency - Category F.
Other requirements include:
- Property must be used for his/ her permanent residence.
- Property must be new.
- A Cyprus bank account must be opened with a deposit of minimum 30,000€.
- Proof of money transfer from abroad.
- Applicant must not be engaged in any business activities in Cyprus.
- Proof of income.
- Clean criminal record.
Antonis Zenios Developments Ltdcan advise and assist our clients with the complete application procedure and ensure the successful issues of the Permanent Residence, given all the criteria are met by the buyer.
Further information can be found on the portal of the Ministry of Interior of the Republic of Cyprus- www.moi.gov.cy
EUROPEAN PASSPORT
A non Cypriot can apply for the acquisition of Cyprus Citizenship by investment under the following provisions- - A 2.5€ million (plus Vat if any) investment in a single residence. - A 2.5€ million (plus Vat if any) investement in a selection of residential properties out of which a property to be used a permanent residence of value of at least 500,000€.
Further information can be found on the portal of the Ministry of Interior of the Republic of Cyprus - www.moi.gov.cy