We have listed below a few questions and answers reagarding buying a property in Cyprus, legalities, costs and general information. If you have questions which are not listed below, please contact us and we will be happy to help you or point you in the right direction.
Questions & Answers
Is Cyprus now a full member of the European Union?
Yes. Southern Cyprus was welcomed as a full member of the EU on 1 May 2004.
In what currency are payments made?
Payments are made in Euros only, as specified in your contract of sale.
Do I have to be here for each stage of the legal process?
No, you can instruct you solicitor to act on your behalf, even for the final completion. Lawyers in Cyprus are responsible for chasing up all information required by their clients. Any information you require can be requested direct from the developer or from your appointed legal representative.
What can I expect to pay in legal fees?
The legal fees usually charged by a lawyer are approximately 800 Euros. In reality, they start at 500 Euros but are dependent on the property purchase price and are subject to VAT (currently 15%). They cover the review and alteration if required of the Sale Agreement, revision of the General Agreement (which regulates the use of common areas, where applicable) and submission to the land registry for specific performance. In addition, there are stamp fees and the cost of the application to the Council of Ministers (approx 100 Euros).
How do I get the title deeds to my property?
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the land registry office. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within 40 days from the contract date. When issued, the title deed will be registered in the name of the buyer and will be recorded in the government archives – these are confidential and will not be published or made accessible under any circumstances.
When do I have to pay stamp duty and how much can I expect to pay?
Stamp duty is due at the time of signing the contract. This is levied at the rate of €2.57 per €80,000 up to €171,000 and thereafter at the rate of €3.42 per €1,700. The purchase contract must be stamped within 30 days of its dated signature or a fine will be imposed.
How do the banks compare?
The banking system in Cyprus closely follows the European pattern. The banks have many branches throughout the island which are efficient, modern and well equipped with the latest technology. Non-Cypriot citizens may open foreign currency and local deposit accounts without difficulty, although you will also find branches of many international banks at your disposal.
Major credit cards, such as those within the Visa and MasterCard networks, are widely accepted in Cyprus. Transactions and payments are simply made through your foreign deposit account.
Who supplies power, water and gas?
Cyprus Electricity Authority supplies power. The Water Board supplies the water. Gas is not centrally supplied in Cyprus. The charges for electricity and water are payable to the respective authorities at regular intervals throughout the year. The water every three months and the electricity every two, and they are based on the consumption of each unit therefore the cost will vary around €80 per month for normal usage to €170.
Do I have to make a will in Cyprus?
It is not mandatory; however, it is advisable to make a will when buying the property, because there is no inheritance tax in Cyprus. In the event you do not have one, your heirs might be forced to pay tax in your home country. So, make a will while buying property or else you may forget.
What about inheritance tax?
There is no inheritance tax.
Is the crime rate high or low?
Cyprus enjoys a remarkably low crime rate … 1/6 of the European average … another reason for its popularity with foreign buyers for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of and theft not commonplace.
Can i work in Cyprus on a permanent basis?
Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit. EU citizens can acquire one very easily, just by having the approval of the Ministry of Labour, again a matter of formality.
As a non-national can I buy a business in Cyprus?
EU citizens can buy a business in Cyprus. Non-EU citizens can also own a business in Cyprus, but require a permit.
Some of the information in this section has been supplied by third parties, and D Kizis Developers and its associated companies cannot be held responsible for any changes. Professional advice should always be sought at the time of purchase.
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