Cyprus is the third largest island in the Mediterranean Sea situated off the coast of Turkey in the Eastern Mediterranean. A large majority of the population are of Greek origin however there is a large British population and the island is an independent country to Greece. Geographically the island is well positioned with easy access to North Africa, the Middle East, and Europe. With it’s recent inclusion into the European Union, Cyprus is fast becoming a very popular destination for tourism and for creating off shore companies for tax benefits.

 

 

 

 

 

 

 

Why should you invest in real estate in Cyprus

1. Cyprus has a very high standard of living and a low cost of living; better than most European countries. It's economy is stronger than Portugal, Spain, Italy and Greece.
2. Investment into property is continuously rising, due to increased demand from people who wish to invest or even reside in Cyprus. 60 000 British ex-pats provide an attractive community for UK retirees and a dynamic demand for quality property in quality areas.
3. There is an average of 330 days of sunshine in a year, enough to keep the sea warm for comfortable swimming from early May all the way though till October.
4. There are few places in the world where you can ski on the Mountains in the winter and the same day play golf and scuba dive
5. The crime rate is extremely low with very little corruption.
6. The food is excellent with a healthy Mediterranean influence which includes lots of seafood and wine.
7. Currently there are significant investments in infrastructure including new Golf Courses and Marinas.
8. Cyprus has two international airports, Larnaca and Paphos, serviced by approximately 30 major airlines with many flights from the UK and other countries weekly.
9. The island has a modern road system making travel on the island quick and easy.
10. Driving is on the left and distances between towns are relatively short.
11. Cyprus has three marinas for yachts and several marine and sporting clubs
12. Telecommunications on the island are among the best in the world; an important fact in establishing the island as an offshore business centre.
13. According to United Nations statistics, Cyprus has a higher rate of University Graduates per capita than any other country in the world.
14. Cyprus has tax benefits such as low tax for pensioners and very high standard of medical and educational facilities.
15. Due to the historical British influence on the island, 85% of the Cypriot population speaks English and the accounting, legal and banking systems are all conducted in English
16. Local Cypriots are very hospitable to foreign visitors and tourists.
17. Cyprus is the home to the WRC Championships
18. The transport system in Cyprus is very efficient and cost effective, with taxis and buses available throughout the day.

Other Useful points regarding property procedures in Cyprus

Specific performance: Property deals in Cyprus are generally in favour of the buyer which make them particularly attractive to foreign investors. The land registry of Cyprus provide a legal instrument called the “Specific performance” which safeguards the buyer once the sales agreement has been signed and a deposit paid. This procedure protects the purchaser’s ownership rights until the deeds are issued and transferred to their name. The contract in the hands of the Land Registry cannot be leased, sold, transferred or mortgaged. This status can only be altered by the purchase himself.

Stamp Duty: A once off stamp duty fee is payable by the purchaser to the tax authorities of Cyprus which is due within 30 days of signing the sale agreement.

Purchase Price in CYP	Stamp Duty in %
Up to 100,000	0.15
Over 100,000	0, 20

Transfer Fees: The Purchaser must be liable to pay transfer fees when the property is registered in his/her name at the Land Registry Office

CYP Transfer fee	(% on property value)
Up to 50,000	3
50,001-100,000	5
Over 100,000	8

Immovable property Tax: The registered Owner is liable for this annual tax which is based on the value of his/her property as of 1st of January, 1980

Taxable value CYP	Annual Tax (% on taxable value)
Up to 100,000	Nil
100,001-250,000	0.25%
250,001-500,000	0.35%
Over 500,000	0.40%

Local Authority Tax: ranges between CYP 30-100 per annum, depending on size of the property. This covers the cost of garbage disposal, street lights etc.

Capital Gains Tax: this is levied at 20% on gains arising from the sale of the property. However for foreign owned property that is sold, CYP 10,000-CYP 50,000 in a private residence is exempt and there is also and indexation allowance. However there is no tax to pay if the property was acquired between 1 August 1980 and 13 July 1990 with foreign currency imported into Cyprus.