THE LEGAL SYSTEM – What are the costs ?
Its largely based on the British System and protects the Purchaser’s Rights .Once the “ Sales Contract” has been signed and deposit paid, Land Registry introduces a Specific Performance which protects the Purchaser’s Rights until the Title Deeds are issued and transferred to their name(s). They cannot be withdrawn by anyone. Conveyancing Costs depends on which lawyer you engage but on average they start at 1,200 Euros plus VAT @ 19%
STAMP DUTY – Is it levied on property and is it expensive ?
The Stamp Duty is calculated as follows:
|Contract Value €||Fees -%|
|€0 – 5,000||00/0|
|€5,001 – €170,000||0.150/0|
|on the balance||0.200/0|
The stamp duty must be paid within 30 days of signing the contract to avoid paying a penalty.
TRANSFER FEES – How much are they ?
The Cyprus Government, in an attempt to increase investments, has recently reduced the transfer fees by 50%. The present calculation of the transfer fee is as follows: Up to 85,000 Euros it is 1.5 %, then 85,001 to 170,000 Euros it is 2.5% and over 170,000 Euros it is 4% per person. Note: in the event that the property is being purchased by two purchasers, the transfer fees will be less as the value of the property is divided by two, calculated separately and then added together i.e.
|Example if 1 person||Example if 2 persons|
|Property Value €||€500,000||€500,000|
|Property Value € per person||Fees -%||€500,000||€250,000|
|Up to 85,000||1.5%||€1,275||€1,275|
|170,001 and over||4%||€13,200||€3,200|
|Total per person||€16,600||€6,600|
The transfer fee is only payable when Purchasers acquire their Title Deed. If the title deed is not available at the time of purchase of the property, it will only be paid at a later stage when the title deeds are available.
IMOVABLE PROPERTY TAX ?
Now abolished, so no Fees apply.
INHERITANCE TAX ?
There is none if the beneficiaries can prove they are domiciled in Cyprus. Tax planning is advised for Foreign Persons to benefit from Cyprus’s lack of this tax.
TRANSFERRING MONEY – The best and cheapest way ?
British Banks tend to have much higher costs than Currency Brokers, we have worked with several for many years who have excellent reputations and will help you all the way.
BANK ACCOUNTS – Do I need them?
Yes, to pay utilities, telephone bills, communal charges etc. It takes about 5 days to open an account and we can advise you on what documents are required.
DOMESTIC RATES ?
Charges depend on size and type of property, they are a “one off” payment around October e.g. A 3bed villa with a pool can be 350 euros or 160 for a 2bed apartment annually. In addition, there is a very reasonable sewerage charge, each Municipality has its own Charge Scale for both.
ELECTRICITY & GAS – Are they different to ours ?
The electricity is the same as UK, with 3 pin plugs too, bills are bi-monthly. There is no natural gas, just LPG
WATER – Is it safe to drink etc ?
Tanks are on the roofs and are heated by solar for most of the year. There is also mains water, every kitchen has a drinking tap on the sink and water can be safely drunk.
HEALTH CARE INSURANCE – What is available and the costs ?
There is both good private and national Health Care if you are a resident and as a visitor you can also use your EHI Card.
INFRASTRUCTURE – Is there everything we need ?
We have two International Airports, Motorways, Marinas, Commercial Port, good Telecommunications, reliable Power Supplies, Hospitals, good Schools, International Schools and Pre-School Childcare.
FURNISHINGS – Could I find all I need or is it better to ship over ?
There is everything here, with brands and shop names you will know. Probably cheaper to have new from Cyprus and just ship over personal and sentimental things.
Everything you find in the UK plus more, Art Classes, Pottery & Mosaics, Sports of every kind, from Running & Walking Clubs to Yoga & Pilates & there are many gyms. Amateur Dramatics with its own theatre in Emba Village, Classic Car club, fishing Groups, Dancing Classes with Line, Latin American and Traditional Greek etc,….. in fact, everything from Bridge to Bingo ! Plus, Spas & Beauty Parlours for the ladies and many “Learn to speak Greek” classes of course.