In what currency are payments made?
Payments are made in Cyprus Pounds only, as specified in the contract of sale.


What are the tax implications if I buy a unit in my Limited Company name?
All companies tax resident of Cyprus are taxed on all their income accrued or derived from all sources in Cyprus and abroad. The standard rate of tax for a corporation is 10%. For years 2003 and 2004 any profits in excess of CY£1.000.000 are subject to an additional tax of 5%.


What are the payment terms for purchasing a unit?
Payment terms are specified on each project’s price list and vary among projects and stage completion of each one.


Can I apply for permanent residency?
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. They just have to complete an application form at the immigration office for formality purposes, and automatically they receive their residence permit. For non-EU citizens there is a straightforward procedure that needs to be followed. However, permanent residence is easy to obtain. The applicant needs to submit an application and provide proof that he and his family are self-supported. The following documents must accompany the application:

1. A copy of the sale/rental agreement
2. Copies of pension/retirement income
3. Any other document relevant to income
4. Three photos and passport
   

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


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?
E.U. citizens can buy a business in Cyprus. Non-E.U. citizens can also own a business in Cyprus, but require a permit.


Are there any tax advantages?
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 business entities in Cyprus, open the door to significant tax planning opportunities. The fact that Cyprus is not considered a tax haven, but rather 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: Austria, Belarus, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy Kuwait, Malta, Norway, Poland, Romania, Russia, Slovakia, Sweden, Syria, United Kingdom, South Africa, United States and Yugoslavia.


What was the Capital Growth over the last few years in Cyprus?
From 1999 to 2003 was approximately 15 – 20% per year, both in Cyprus.


What is the expected Capital Growth within the next few years in Cyprus?
It is expected to be not less than 15% per year.


What is Cybarco’s legal system?
Purchasers are free to appoint a solicitor of their own choice in Cyprus to handle their affairs. All documents signed are in English. If a purchaser does not have a solicitor, Cybarco can refer him/her to a number of recognised and experienced professionals.


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 £50 per month for normal usage to £100.


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 will forget.