Island Information

The third largest island in the Mediterranean, Cyprus stretches 150 miles (240 km) from the west coast to its easternmost tip and 60 miles (96 km) from North to south.
The population is approx 750,000 and the major industries are tourism, fruit & vegetables, wine, cement, clothing and shoes.

Cyprus is an island of beauty and a country of contrasts. Cool pine clad mountains, are a complete scene change after golden sun kissed beaches: tranquil, timeless villages are in striking contrast to modern cosmopolitan towns.

With its spectacular scenery and enviable climate, its no wonder that Aphrodite chose the island as her playground, and since then, mere morals have been discovering this ‘land fit for gods’ themselves.

Why Cyprus

The Cyprus property market is proving to be one of the fastest growing property markets within Europe. The main attraction is the potential growth in terms of return on investment of property compared to other countries in Europe.

The island is served by approximately 30 major airlines, through its international airports at Larnaca and Paphos. Driving is on the left and distances between towns are relatively short, covered by a good network of modern roads.
Cyprus telecommunications are among the best in the world – an important factor in establishing the island as an offshore business centre.

Key Advantages

• Excellent all year round climate (approx 330 days of sunshine!)

 

• Taxes and service charges remain lower than in most European countries

• Healthcare standards are very high and most GPs and specialists are European trained

 

• Greek is the mother tongue, however English is readily spoken and understood almost everywhere

• Local hospitality makes foreigners feel at home. Furthermore Cyprus enjoys a remarkably low crime rate,1/6 of the European average

 

Legal Issues and costs

 

Purchasing Property

The logistics of property purchase by foreigners are relatively simple and easy. Transfer of ownership is accomplished by a simple procedure through the land registry Office, either by the buyer or an appointed third party with a power of attorney.

Taxes & Fees

 

The transfer fee is the most serious expense over and above the sale price that the purchaser bears and is payable upon transfer of the property to the purchasers name, and is calculated as follows:

Property value (£)	Transfer Fees (%)
Up to 50.000	3
50.000 – 100.000	5
Over 100.000	8

For example if the purchase price is £ 130.000 the transfer fees are calculated as follows:

 

                          Property Value                                           Transfer Fees (£)
                    The first £50.000 @ 3%                                                1.500   
                    The next £50.000 @ 5%                                               2.500
                    The last £30.000 @ 8%                                                2.400
                         Total Transfer fees                                                 6.400

If there are two purchasers buying one property, the effective calculation is halved.

Stamp Duty

Before the contract is lodged in the Land registry Office for specific performance purposes, it needs to be stamped by the Tax office. The stamp duty must be paid within 30 days of signing the contract to avoid paying penalties.

The Stamp duty is calculated as follows:

Purchase Price (£)	Stamp Duty %
Up to 100.000	0.15
Over 100.000	0.20

 

Immovable Property Tax

This is imposed on immovable property situated in Cyprus per annum and the rates were amended January 2003 as follows:

 

 

Property Value (£)	Rate (%)
Up to 100,000	0
100,000 - 250,000	2.5
250,001 - 500,000	3.5
500,001 - above	4

 

 

Capital Gains Tax

 

Capital gains tax is imposed on gains from the disposal of immovable property at a rate of 20%. There are certain exemptions and indexation relief allowed.

There is no capital gains tax liability on the gains of investments.

 

Estate Duty (Inheritance Tax)

Estate Duty was abolished in Cyprus in January 2000; however we suggest that expatriates seek advice from a tax professional as this is a very detailed subject.

 

Tax in Cyprus

Cyprus has very favourable tax rates particularly for the retired expatriate.

You are considered a resident for tax purposes in Cyprus if you reside here 183 days or more in each tax year.

EU nationals retiring in Cyprus enjoy a preferential low rate of 5% from pension and investment income brought into Cyprus from abroad. This will remain indefinitely.