AM I ALLOWED TO BUY PROPERTY IN CYPRUS?

If you are not Cypriot, don’t worry! Purchasing property in Cyprus is very simple and easy, especially when compared to other countries. Cybarco will be with you all the way, assisting you with anything that you may need.

Non-EU citizens are entitled to freehold ownership of properties, while offshore entities may buy premises for their business or as a residence for their foreign employees. Permission to buy property must be sought from the Council of Ministers by written application, submitted by the purchaser after the agreement is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale. It is unusual for the Council of Ministers to refuse permission to bona fide EU citizens and other foreign nationals.

EU citizens who are permanent citizens in Cyprus do not require permission to buy any immovable property.

EU citizens who are not resident in Cyprus also need the approval of the Council of Ministers.

EU citizens with a permanent or temporary residence permit can register as many properties as they wish in their name, as long as they have signed a confirmation with the government of Cyprus that they will stay in the country for the following five years.

Legal entities established in EU countries that have their headquarters and registered office in Cyprus do not require permission to buy any immovable property.

Legal entities established in Cyprus and controlled by citizens of the EU require permission to buy immovable property in Cyprus, as well as any other legal entities.

At your request, Cybarco will submit your application on your behalf, for a reasonable fee.

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ARE THERE ANY LEGAL SAFEGUARDS FOR FOREIGN BUYERS BUYING PROPERTY IN CYPRUS?

Once the contract of sale is signed and stamped, Cybarco, or your lawyer, files within two (2) months a certified copy of the contract at the Land Registry Department to ensure the transfer of the acquired property into your name.

Specific Performance Law safeguards a purchaser of immovable property from a transaction between a seller and a purchaser, especially when the purchaser is not allowed to immediately transfer the acquired property into his/her name even though payment of the consideration has been made.   Depositing a copy of the contract to the Land Registry gives the purchaser, according to the above law,  the right to seek “specific performance” of the terms and conditions of the contract and thus to register the property into the purchaser’s name. The contract of sale deposited  with the Land  Registry can be withdrawn only with your consent.

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HOW IS PROPERTY OWNERSHIP TRANSFERRED?

Transfer of ownership from Vendor to Purchaser is a simple procedure undertaken through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with a power of attorney.

By purchasing your property from Cybarco, you are guaranteed your Property’s Title Deed.

When the Title Deeds are issued, (a few years after the completion of the project / property) they are always in the name of the Developer (Cybarco), and then Cybarco transfers the Title Deed of each unit in the name of the purchaser. From the minute your Contract of Sale is deposited at the Land Registry Department, you the purchaser can prevent the owner/developer from transferring the property elsewhere or changing it. Furthermore no burdens, charges or encumbrances can affect your right to seek specific performance after the contract has been deposited with the Land Registry, since you are the beneficial owner.

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WHAT DOCUMENTS ARE REQUIRED FOR THE TRANSFER OF PROPERTY?

For the transfer of property to the purchaser, the following documents must be submitted: 

1. Confirmation by the Central Bank that the purchase of the property was completed with foreign funds, imported into Cyprus.
2. The sale agreement/contract. 
3. The Council of Ministers’ permission for the purchase of property.
4. Confirmation that taxes have been paid (immovable property tax, sewerage tax, etc).
   

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IN WHAT CURRENCY ARE PAYMENTS MADE?

Payments are made in Euro, as specified in the contract of sale.

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HOW DO I GET A RESIDENCE PERMIT IN CYPRUS?

By law, a non-Cypriot who owns property in Cyprus is entitled to a residence permit, but is not required to hold a permanent residence permit.

For EU citizens there are no restrictions. You just have to complete an application form at the immigration office as a matter of formality, before automatically receiving your permit. Applications forms are available from any local immigration office.

For non-EU citizens, the procedure is straightforward:

Temporary Residence Permit 
Permits are granted upon documentary proof of the existence of a bank account in Cyprus, sufficient foreign income to support the applicant and his/her family and the sales agreement of the property purchased.

Permanent Residence Permit 
Permanent residence is easy to obtain. You simply need to submit an application and provide proof that you and your family are self-supported and have been staying in Cyprus continuously for more than 5 years.

Applications for residential permits can be downloaded from the Ministry of Interior
Form 1
Form 2

The following documents must accompany the application: 
(1) Copy of the sale contract/agreement. 
(2) Copy of payments to the property developer for the acquisition of the property. 
(3) Copy of a bank statement, confirming the existence of an account with a local bank. 
(4) Any other document relevant to income (for example,  pension/retirement income). 
(5) Four passport-size photos 
(6) Passport. 
(7) Small application processing fee (€34.17). 
(8) Letter of guarantee obtained from your bank in Cyprus (€512.58).

At your request, Cybarco will assist you in obtaining your residence permit in Cyprus.

The application for permanent residence may be submitted to the local immigration office in the area of residence.

For more information, please contact the Ministry of Interior of the Republic of Cyprus at +357 22 867-400 / -401 / -403 / -405

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CAN I SELL MY PROPERTY IN CYPRUS?

Provided that you have a valid contract and a purchaser, then you can sell your property.
If you want to sell your property before the title deeds are issued, your contract with Cybarco will be cancelled and a new one will be issued between Cybarco and the new purchaser. Cancellation fees are charged to the seller at approximately €4000.

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WHAT IS THE CAPITAL GAINS TAX IN CYPRUS?

Should you decide to sell your property at a later date, Cypriot law provides that the full amount for it in foreign exchange may be transferred abroad at the time of resale. The equivalent of the full purchase price and any increase in the value of the property may be transferred immediately.

Property sales in Cyprus are subject to capital gains tax at the rate of 20% on the gain; however, the first €17.086 of gain are tax-exempt. If a couple jointly owns the property, the first €41.172 of gain is tax-exempt. If you have owned a private residence for five years and are selling for the first time, the first €85.430 of gain is  tax-exempt.

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HOW CAN I FINANCE THE PURCHASE OF MY PROPERTY?

Cybarco has strong relationships with all the major banks in Cyprus. Our staff will guide you through every step of the procedure, assisting you with the granting of your loan.

Our aim is to reduce the costs of your property’s financing, as well as to make the application process as fast and easy as possible. When Cybarco recommends you to a local bank for the financing of your property, the chances of rejection are virtually non-existent. 

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HOW MUCH DO CYBARCO'S PROPERTIES COST?

The prices of our properties vary according to the type of property, its location, specifications, size and so on.

For more information on our prices, please call any of our offices or send us an e-mail and we will get back to you the soonest possible.

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WHAT ARE THE PAYMENT TERMS WHEN BUYING PROPERTY FROM CYBARCO?

Payment terms are specified on each of our project’s price list and vary according to the type of development and stage completion of each project. 

Once you have selected the project(s) in which you are interested, please call any of our offices or send an e-mail to us and we will forward all relevant information on the development(s) you have highlighted.

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IS THERE A LAND REGISTRY DEPARTMENT IN CYPRUS?

All immovable property in Cyprus is registered at the Department of Lands and Registry, which operates one of the most sophisticated land registry systems in the world. This makes the procedure of purchasing property in Cyprus very straightforward.

To find out more about the Land Registry Department of the Republic of Cyprus, please visit the Department of Lands and Surveys’ website.

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HOW ARE PROPERTY TRANSFER FEES CALCULATED?

Upon transfer of the property and registration in the purchaser’s name, the District Land Registry Office charges transfer fees are based on the market value of the property at the time of the purchase. These are calculated as follows:

For properties owned by a couple or by two individuals, each buyer pays transfer fees on 50% of the property value for each, bringing financial benefit on any property with a value exceeding €85.430,07.

Transfer fees – payable only once - are payable at the transfer and registration in the purchaser’s name of the title deed of the property (usually 3 – 5 years after final delivery).

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DO I NEED TO EMPLOY AN ADVOCATE (LEGAL ADVISOR) TO CARRY OUT ALL LEGAL WORK?

You are not obliged to use a legal advisor, but we recommend you do so as a safeguard before you signing the contract of sale. Fees for experienced property advocates range between €1200 and €3400, payable on signing the contract. If you do not have an advocate, we can refer you to a number of respected and experienced professionals.

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DO I HAVE TO PAY STAMP DUTY?

In the case of a sales contract, you, as the purchaser, are liable for the payment of Stamp Duty at the rate of 0.15% on any property with a value of up to €170.860,14. Thereafter the rate becomes 0.20%. Stamp Duty is payable within 30 days of signing of the contract of sale.

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WHAT IS THE RATE OF VAT PAYABLE ON PROPERTY?

Since Cyprus’ accession to the EU in 2004, VAT must be paid when buying a new build property. In cases where an application for a town permit was filed before the 1st of May 2004, VAT will not be charged.

In cases where an application for a town permit was filed before the 1st of May 2004, VAT will not be charged. If the town planning application has been filed after the 1st of May 2004, VAT is charged on the sales price at a rate of 15%. First-time buyers can apply for VAT reimbursement in cases where they paid the full amount of VAT on single properties purchased after the 1st May 2004.

No VAT is charged on the purchase of land.

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WHAT ANNUAL PROPERTY TAXES AND FEES DO I HAVE TO PAY?

a. Immovable Property Ownership Tax 
As the registered owner of the property, you are required to pay an annual Immovable Property Ownership tax, calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the year). Immovable Property Tax is payable to the Inland Revenue Department of the Republic of Cyprus. 

Rates are as follows:

c. Municipality tax 
As the registered owner of the property, you are required to pay an annual Municipality Tax calculated on the market value of the property as at 1st of January 1980. Rates vary from 1‰ - 2‰. Municipality tax is payable to your local municipal authority.

d. Sewerage tax 
As the registered owner of the property, you are required to pay an annual Sewerage Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 3‰ – 3,5‰. Sewerage taxes are payable annually to your local sewerage board.

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ARE THERE ANY TAX ADVANTAGES IN CYPRUS?

Cyprus is a signatory to a Treaty for the Prevention of Double Taxation with many countries all over the world. Double Taxation treaties avoid the payment of income tax in two countries.

Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties and lower income tax rates. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax charged in the taxpayer’s country of residence. Where different tax rates apply, the taxpayer will ultimately not pay more than the higher of the two rates of the respective countries. Such treaties – combined with very favourable tax rates for international businesses in Cyprus – open the door to significant tax planning opportunities.
The fact that Cyprus is not considered as a tax haven, but rather as a country offering tempting tax incentives, expels the distrust that international tax havens often arouse.

To date, double taxation treaties exist between Cyprus and the following countries: Russia, Ukraine, United Kingdom, Austria, Belarus, Belgium, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Lebanon, Malta, Mauritius, Norway, Poland, Romania, San Marino, Seychelles, Singapore, South Africa, Slovakia, Slovenia, Sweden, Syria, Thailand, United States and Yugoslavia.

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CAN WE IMPORT OUR PERSONAL BELONGINGS DUTY FREE?

EU citizens who become permanent residents in Cyprus and have used their car in their own country for at least 6 months, can bring their car with them to Cyprus without paying import tax.

EU and non-EU citizens who become permanent residents of Cyprus can import personal belongings, household goods and furniture duty free, provided that these are not brand new (used for at least 1 year) and are for personal use.

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IS THERE INHERITANCE TAX IN CYPRUS?

There is no inheritance tax in Cyprus.

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IS THE PROPERTY PURCHASED FROM CYBARCO INSURED?

Cybarco insures each property against fire, theft, public liability for common areas and special perils (earthquake, flood, escape of water, etc), until the title deeds are issued and the property transferred to the purchaser.

The purchaser is responsible for the insurance of any objects (contents) within the property.

Once the title deeds are issued, Cybarco can introduce the owners to the relevant insurance.

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WHAT IS THE RATE OF INCOME TAX IN CYPRUS?

If you are working in Cyprus, the tax rate that applies on your income your income is taxed at the following rates:

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WHAT IS THE PENSION TAX RATE IN CYPRUS?

The tax system in Cyprus requires retirees to declare any income from pensions held abroad. Retired non-Cypriots benefit from very favourable tax rates, with a maximum of 5% per year charged on pension and investment income brought into Cyprus.

In some cases, exemptions may apply: up to €6,835 per individual or €13,669 per married couple. 

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CAN I RENT THE PROPERTY PURCHASED FROM CYBARCO?

Cybarco can recommend rental management companies for clients who wish to rent their second home. With Cyprus enjoying year-round tourism, the potential exists for properties to achieve gross yields of up to 10%. The employment of a management team to handle the day-to-day running of a property will ensure it is maintained to the highest standards and maximise its potential to secure optimum rental and occupancy rates.

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CAN CYBARCO HELP ME CHOOSE FURNITURE FOR MY PROPERTY?

When it comes to creating the perfect home, Cybarco is keen to help you every step of the way. We work closely with top-of-the-range suppliers to ensure that your dream home is furnished with a style and quality that lives up to your expectations. Our sales representatives will also be glad to accompany you in your search to find the best furnishing solutions for your new home.

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CAN CYBARCO HELP WITH THE LANDSCAPING OF MY VILLA?

Cybarco has earned an enviable reputation as a property developer dedicated to preserving and enhancing the natural environment. As such, Cybarco works with highly-qualified landscaping professionals to create the perfect harmony between building and nature. Private consultations can also be arranged if you are looking to further personalise your garden.

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CAN I BRING MY PET WITH ME TO CYPRUS?

Of course you can! And it’s not difficult at all, as long as:
  - your pet is over 3 months old (in the case of cats, dogs and ferrets)
  - is a ‘European Pet Passport’ holder in your home country (if not, your vet can issue one for you)
  - has all the necessary vaccinations

If you have a suitable travel box that complies with the IATA Regulations, the only thing left is to obtain a license from the Veterinary Services of the Republic of Cyprus (telephone number: +357 22 805182).

Along with your pet’s vaccination card, you will need to present the necessary documents confirming that the pet arrived in the Republic of Cyprus from a member country of the EU.

At least 48 hours prior to your arrival in Cyprus, you must inform the Veterinary Services of the date and hour of your arrival, as well as your flight details (flight number, operator, etc). 

You – or someone assigned ownership responsibility – are required to accompany your pet during importation. Your pet must also be identifiable by legible tattoo or electronic microchip, as well as documents verifying the owner’s name, surname and address.

Note that the following dog breeds are forbidden in Cyprus: Pit Bull Terrier, Japanese Toea, Dago Argentina, Fila Braziliero or any other dog that is bred for fighting.

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WHAT ABOUT SHOPPING IN CYPRUS?

You can literally shop until you drop in Cyprus, as the island has a wealth of shops and boutiques for all tastes and requirements. There are plenty of smart, high-street fashionable boutiques, as well as chain stores such as Debenhams, Marks & Spencer, Top Shop, etc. Malls are beginning to take off in Cyprus, with major cities offering at least one shopping centre in the suburbs.

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WHO SUPPLIES WATER AND ELECTRICITY IN CYPRUS?

Cyprus Electricity Authority supplies power and the Water Board Authority supplies the water. Charges for electricity and water are payable to the respective authorities at regular intervals throughout the year (water every three months and electricity every two months). The charges, based on the consumption of each unit, range from around €85 per month for normal usage to €200.

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DO I HAVE TO MAKE A WILL IN CYPRUS?

It is not mandatory to make a will in Cyprus, but it is advisable to make a will when buying your property because there is no inheritance tax in Cyprus. If you have not made a will, your heirs might be forced to pay tax in your home country. So, our best advice is to make a will while buying your property or else you will forget.

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HOW DOES CYBARCO'S LEGAL SYSTEM WORK?

With Cybarco, you are free to appoint a legal advisor of your own choice in Cyprus to handle your affairs. All official documents are in English. If you don’t have a legal advisor, we can refer you to a number of recognised and experienced professionals.

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WHAT ARE THE TAX IMPLICATIONS IF I BUY A PROPERTY IN MY LIMITED COMPANY NAME?

All companies resident in Cyprus are taxed on all income accrued or derived from all sources in Cyprus and abroad. The standard rate of tax for a corporation is 10%.

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CAN I WORK IN CYPRUS?

A career, a good job with prospects, an affluent lifestyle – all these are achievable if you live and work in Cyprus. Nicosia and Limassol are the two main employment centres, with many international and local companies operating thriving businesses across the island.

EU citizens
As Cyprus is a member of the EU, work permits are not required for EU citizens who would like to work or start a business on the island, although some formalities should be observed. Since May 2004, when Cyprus joined the EU, citizens of the EU, as well as citizens of the EEA (European Economic Area: including Norway, Iceland and Liechtenstein) and Switzerland, can freely work and with equal rights in Cyprus.

To find out more, visit the Department of Labour site.

Non-EU Citizens
If you are a non-EU citizens intending to work in Cyprus, you are required to obtain a work permit and visa before your arrival in Cyprus.

The precondition for the granting of permits by the Department of Labour to foreign workers depends upon the degree to which the local labour force (Cypriot or EU citizens) can meet the specific needs of potential employers. Policies to safeguard the smooth operation of labour market and protect certain economic fields and occupations may also influence the Department of Labour’s decision to approve applications.

The two categories of work permit are: Executive and non-Executive.

Executive refers to directors or partners of companies registered with the Registrar of Companies in Cyprus, as well as departmental managers of international companies with offices in Cyprus. Non-executive refers to other managerial, professional, administrative, technical and clerical staff.

A work permit, when granted, is usually valid for three months or a year. To find out more, visit the Department of Labour site.

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AS A NON-NATIONAL CAN I SET UP A BUSINESS IN CYPRUS?

EU citizens can buy a business in Cyprus, as can non-EU citizens although they require a permit.

If you are setting up a business in Cyprus, you have to register a legal document including your company name with the Chamber of Commerce. As most businesses are required to charge VAT, the Inland Revenue will issue you with a VAT registration number.

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WHY IS IT DANGEROUS TO BUY PROPERTY IN THE NORTHEN OCCUPIED AREA OF CYPRUS?

Entering into a “deal” for the purchase of immovable property in the area of Cyprus under Turkish occupation, constitutes an illegal act, which will expose the “purchaser” to grave legal and financial consequences.

The judgments of the European Court of Human Rights in the cases of Loizidou V Turkey (judgment dated 18/12/1996) and Cyprus V Turkey (judgement dated 10/5/2001) clearly set out the following points:

1.The administrative practice applied by the subordinate local administration of Turkey in the occupied area of Cyprus of issuing “title deeds” to the new occupants of properties belonging to Greek Cypriots situated in the occupied area of Cyprus is based upon “legislative” and “constitutional” provisions of the said administration, which cannot be attributed any legal validity whatsoever.

2. Greek Cypriot owners, cannot be deemed to have lost their legal title to their properties and have always remained and will continue to remain the only true and lawful owners.

Further to the above, purchasers, particularly those domiciled in the United Kingdom, run the risk of being sued at any time by the Greek Cypriot owners, many of whom are also domiciled in the United Kingdom, before British Courts for trespass, or conspiracy to commit trespass, to such properties. Similar actions based on tort could very well be brought before the Courts of the Republic of Cyprus.

Political views on the situation in Cyprus, maybe differing. The aforementioned information sets out the true legal aspect of the matter, as upheld by an independent and internationally recognised judicial body, namely the European Court of Human Rights of Strasbourg.

Anyone contemplating the purchase of properties in that part of the island should be aware that the Greek Cypriot refugees, who are the legal owners of those properties, remain the rightful legal owners at all times, and their rights to that property stand unaffected. Any “title” that might have been issued to “purchasers”, or any “title” that might be issued by the so called “TRNC” in the future, to any prospective buyer, is of no legal validity and does not in anyway prejudice the rights of the legal owners of property in the Turkish occupied area, who are determined to make use of every legal tool before national or international judicial bodies to enforce their rights against any person illegally interfering with their inalienable right to free and peaceful enjoyment of their properties.

For more information regarding the purchase of property in the area of Cyprus under Turkish occupation, please visit the following sites of the Ministry of Foreign Affairs

Greek Cypriot properties under Turkish military occupation

Illegal Exploitation of Greek Cypriot properties by Turkey in occupied areas

Caution regarding property purchases in the occupied area of Cyprus

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