Department of Land Registry
Property in Cyprus is registered on a land registry similar to that of the United Kingdom. The Land Registry system in Cyprus has been continually updated and modernized to make it one of the most efficient and sophisticated land registry systems in the world. Property purchasing in Cyprus is therefore a very straightforward and simple procedure.
Property purchase permission
Permission to buy property must be obtained from the Council of Ministers with a written application that must be submitted by a foreign purchaser after the agreement is signed. Permission is usually granted as a matter of course to all bona fide purchasers. During this process purchasers may take possession of their property without restriction. Application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable period of time once the contract of sale has been signed.
EU citizens that are permanent residents in Cyprus do not require permission to buy any immovable property. Non-Cypriot citizens require permission from the Council of Ministers to purchase property in Cyprus. This normally takes from 6 to 14 months and without this permission Title Deeds cannot be transferred to the purchaser. Although time consuming, this is a quite easy, problem-free process
Financing property purchase
Finance schemes are available through most banking institutions in Cyprus. The rate of interest charged by most banks is currently around 5.5% (October 2007) and is dependant on the base rate dictated by the Central Bank of Cyprus.
Legal costs
The cost of advise from an experienced property solicitor before signing a contract of sale might range between €1000 and €1700, usually payable on signing the contract.
Property duties and other costs
Stamp Duty and Mortgage Fees:
In case of a sales contract the purchaser is liable for the payment of stamp duty at the rate of 0.15% on the first €170.000, and 0.2% above this threshold. The duties and fees are payable upon signing the contract of sale.
Transfer Fees
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:
Value up to CY£50.000 - 3% (€85.430)
CY£ 50.001 - CY£100.000 - 5% (€170.000)
CY£100.001 - and over - 8% (€170.000 +)
Transfer fees are charged accumulatively and are payable at the time of issue of title deeds (usually 3 to 5 years after final delivery of property). For properties owned jointly by a couple, transfer fees are charged on 50% of the property value for each, providing an advantage for any property value exceeding €85.430 (£100.000).
VAT payable on property
For projects that the town planning application has been filed after the 1st of May 2004, VAT will apply on the sales price. VAT applied will have two rates, 5% for the first purchase of residence by permanent residents of Cyprus and 15% for any other purchase.
Annual property tax
Immovable Property Tax:
The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st of January 1980. This varies according to values between 0 to 4 CY£ per thousand. Typically the average cost is €85.00 (CY£50) to €170.00(CY£100) per annum.
Other Property Taxes
There are taxes paid to the Municipality and depend on the size and value of the property. These cover refuse collection, sewerage, street lighting, etc. and they vary according to the area, from €85.00 (CY£50) to €256.00 (CY£150) per annum.
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