Should the purchase be made in joint names (i.e. husband and wife, and provided that the total purchase price is more than €170,000) the calculation for the total transfer fee is as follows:

For Example, if the purchase price is €170,000:

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Stamp Duty

Due at the time of signing the contract, stamp duty is levied at the rate of €2.60 per €1,700 up to the value of €170,000, and above that the rate is  €3.40 per €1,700.

For Example, if the value (or purchase price) is €250,000:

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Immovable Property Tax

The annual immovable property ownership tax is based upon the value of the property. Certain immovable types of property are exempt.

IMPORTANT: Immovable property tax is based upon the value of the property in 1980 which is much lower than the current market value. So there is no immovable property tax for the majority of properties in Cyprus.

Local Authority Taxes and rates

Estimate roughly something between €100-300 per year depending on the size of your property. This tax is for garbage collection, street lighting, sewerage, etc...


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Acquiring the Title Deed

Transfer of ownership from vendor to purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party (i.e. a Licensed Estate Agent ) with a Power of Attorney.

In the case of the non-Cypriot, a prerequisite of registration is evidence that the property has been paid for with foreign exchange. 
When one buys a piece of land or a house, the seller as a rule must have a title-deed in his own name which can be transferred to the purchaser. However, if one buys a flat, especially one still under construction, there is no title-deed in existence for the flat and sometimes the seller does not have a title-deed even for the land on which the building is being built because it may still be in the name of the original owner from whom the developer has purchased the property and to whom he stills owes money. These are matters which the purchaser's lawyer must consider and embody in the contract, as well as take such other steps as may be necessary so as to safeguard the interests of the purchaser.

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Residential Permit

Residential Permit is easily obtained for persons living in Cyprus, who have purchased property 

Temporary Permit: The granting of this permit requires the existence of a bank account in Cyprus and a sales agreement of the property purchased. Temporary residence status can be from one to four years. 

Permanent Permit: In addition to the above requirements, the applicant must establish evidence of a secured annual income of not less than €10,000 for a couple. 

Non-Cypriots wishing to reside permanently in Cyprus must apply to the Committee of Aliens Control. To obtain residence permission a Non-Cypriot should fall in the following categories: 

CATEGORY A: In this category are included people who are interested to open an offshore office in Cyprus. 

CATEGORY B: In this category are included self-employed foreigners who are interested to open their own business in Cyprus on the condition that their operations will not have negative impact on the economy of Cyprus. Additionally the minimum capital required is €250.000 

CATEGORY C: In this category are included Non-Cypriots who are interested to be employed in Cyprus by a Cypriot employer. Permission is granted on the condition that their employment will not lead to an increase in the local unemployment in the profession they will practice. 

CATEGORY D: In this category are included foreigners not employed in Cyprus however would like to reside permanently in Cyprus. Permission will be granted on the condition that they have received from abroad and is no less than €10.000. 

Non-Cypriots wishing to take up employment in Cyprus are required to have a permit under the Aliens and Immigration Law. 

Temporary residence is easy to obtain once the applicant fulfils certain requirements. To apply for temporary residence a visit to the local immigration office should be arranged and produce the following documents

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Legal Safeguards for Foreign Investors

Contrary to the risks inherent in the purchase of property in some countries, Cyprus has never been involved in the nationalization of any sector of the economy, nor in the expropriation of property owned by foreigners. Indeed the Republic has often guaranteed foreign investments jointly and severally with local participants - consistent with its efforts to create a favorable climate for such investments.


Selling your Property

You can sell the property at any time and with no restrictions. However there are two different cases:

a) If the property is sold to a non-Cypriot who is paying from external funds, then the whole amount can be repatriated without any requirements. 
b) If the property is sold to a Cypriot, who is paying in Cyprus pounds then the seller is entitled to repatriate an amount equal to: a) what he paid to buy the property, b) plus any other (proved) costs involved with additions or extensions of the property, c) plus the transfer fees, d) plus the inflation, e) plus €100,000 per person per year.
 

Taxation

There are substantial tax advantages for U.K. citizens retiring to Cyprus.

The U.K./Cyprus double taxation treaty, which is unique in this respect enables United Kingdom pensioners to remit both government as well as private sector occupational pensions to Cyprus free of withholding taxes in the United Kingdom.

In practically all other United Kingdom double taxation treaties government pensions are almost always subject to withholding taxes at source. Hence the relief offered to British government pensioners resident in Cyprus is unique to Cyprus and generally not available elsewhere under the terms of other U.K. double taxation treaties.

Similarly foreign retirees living in Cyprus are taxed at only 1/10th of the local rate, foreign retirees pay income tax at the rate of 5% per annum on all imported pensions, with an annual exemption of the first €3,500.

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Estimated Savings

Tax Benefits

The United Kingdom also maintains a reciprocal agreement with Cyprus in respect of National Insurance pensions benefits which in the hands of foreign retirees living in Cyprus remain index linked.

Cyprus levies taxation only on a remittance basis, that is, it taxes only assets that are brought into Cyprus, rather than the more punitive system of taxation on world-arising income that is practiced in may other countries including the U.K. and U.S.A. as well as Spain and Portugal. Residents of Cyprus can thus legally hold assets tax free in banks in tax havens such as the Isle of Man and Jersey, and suffer no taxation on bank interest or dividend income remaining outside Cyprus. No capital gains tax is charged on the remittance of capital assets to Cyprus such as money needed for the purchase of property and other similar capital assets such as motor vehicles.

Increasingly, Cyprus is used as a residential base for former residents of the U.K. Who wish to restructure their personal assets in a favourable tax jurisdiction, where U.K. capital gains tax and income tax exposure can be effectively and legally minimized. The potential tax advantages for retirees are thus truly substantial and the use of Cyprus as a fiscal base for retirees of all nationalities should not be ignored.


Duty Free Privileges

A duty free car is one example of the privileges available to persons retiring to this lovely Island. A medium size saloon car will cost just over half the U.K. price.

Personal effects, household goods and furniture can be imported free of any taxes by immigrant retirees provided they are for personal use and have been used for a while.

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SIMPLE GUIDE TO PURCHASING PROPERTY IN CYPRUS

Our Company will guide you through purchasing a property in Cyprus both legally and effectively.

1. You will sign a Contract with the company that owns the property you have chosen.

2. The Contract then needs to be stamped.  This costs €2.50 per €1,700 of the Contract value.  When the Contract has been stamped, it will be deposited at the Land Registry within one month.  This process secures the Purchasers rights. 

3. As a foreign investor you have to provide proof of importation of foreign currency for the purchase to the (Cyprus) Central Bank.  (Providing this will enable the future exportation of the funds)  This proof may be obtained in two ways.  Firstly, if importing cash, this should be declared at the airport or secondly, the funds may be transmitted through normal banking channels into the Company's account.

4. Once the monies have been imported, approval will be obtained from the Central Bank.  This approval will also be required by the Land Registry prior to the Title Deed of the chosen property being registered in your name.

5. If the property is sold in the future, imported funds can then be exported in total plus any profit to the value of €17,000 per annum.

6. An application will need to be made to the Council of Ministers for permission to own property in Cyprus.  Transfer of ownership (Title Deed) cannot take place until this is received.  This application will require details of the property and the personal and financial status of each applicant.  This permit usually takes approximately six (6) months to complete so it is advisable that the application is made in good time.

7. When the permit is received from the Council of Ministers and assuming the Title Deeds are issued (in the case of new property) then the transfer can take place.  Transfer fee rates are quoted on this Web page under TAXES/FEES (above)

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CHECK LIST

REQUIREMENTS AND STEPS TO BE TAKEN BY AN ALIEN ACQUIRING IMMOVABLE PROPERTY IN THE REPUBLIC OF CYPRUS

1. Obtain reliable and expert local advice.
    

2. Before entering into a contract carry out a search at the District Lands Office to check whether there is already a title-deed in the name of the seller in respect of the property to be purchased or, if not, whether the issue of such a title-deed is legally feasible, as well as, in either case, whether the property is encumbered in any way or not.
    

3. If the property to be purchased is a piece of land, check
   a) whether it has a road access (without it, building is not possible)
   b) if the land is included in any zone or area where building is restricted and , if so, to what extent it is restricted:
   c) whether it is subject to any street widening scheme;
   d) whether the supply of water and electricity is possible and at what expense.
    

4. If the property to be purchased is a house or a flat, check whether there is a building permit and, if completed, whether a certificate of approval for the building has been obtained from the appropriate authority.
    

5. In any case, check the possibilities and eventual availability of a telephone connection.
    

6. Do not enter into a contract before being assured by the lawyer that the case is one in which the relevant permissions from the authorities would, as a rule, be granted.
    

7. When entering into a contract, check that there are ample and proper provisions ensuring
   a) the eventual transfer of the property and the issue of a title-deed free from any encumbrances;
   b)  that the contract is subject to obtaining the relevant permissions from the authorities (this is presumed in law but it is advisable to refer specifically to it, inserting provisions for the return of money paid if permission is not obtained);
   c) that possession is delivered to the purchaser upon execution of the contract if the building is completed and, if not completed, upon completion;
   d) that in the case of a flat, there are general conditions attached to the contract applicable to and binding on all other purchasers and users of flats or shops in the building, regulating their respective rights and obligations.
    

8. Ensure that the contract is signed by the seller in the presence of two witnesses, themselves competent to contract, who have signed as attesting witnesses.
    

9. If the seller is a company, ensure that all corporate actions have been properly taken for the valid execution of the contract.
    

10. If the seller is a person under legal disability or if a person signs in a representative capacity on behalf of the seller, check the proper authority and legal ability of the person signing on behalf of the seller.
     

11. As soon as practicable after the execution of the contract ensure that:
    a) an application is made in the proper form for obtaining the permission of the Council of Ministers;
    b) an application is made to the Central Bank of Cyprus for an exchange control permit, unless the purchaser, though an alien, is a resident for exchange control purposes and the seller is also a resident;
    c) a copy of the contract is deposited with the District Lands Office within two months of its execution, thus ensuring that the contract becomes a charge on the property and that it may be specifically performed.
     

12. As soon as practicable after the permission under 11(a) and (b) above has been obtained, ensure the earliest possible transfer of the title-deed though the District Lands Office, and if a separate title-deed has not yet been issued ensure with the seller that this is done as quickly as possible.  In the case of any breach in the contract ensure that legal action is brought within six months from the date of the breach after written notice.

All the above matters should, of course, be looked after by the lawyer of the purchaser, but their enumeration and their following up by the purchaser himself is advisable and useful.

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GENERAL INFORMATION REGARDING ENTRY & STAY of ALIENS in CYPRUS

Visitor

Aliens may enter Cyprus for a maximum period of 3 months provided they possess valid national passports, return tickets to their country of domicile and they are in possession of sufficient funds for their maintenance during their stay in Cyprus.
The date of expiry of a visitor's permit in Cyprus is normally stamped on the visitor's passport and visitors wishing to extend their stay in Cyprus are advised to apply through the Aliens Office of the District in which they reside.  This should be done at least two weeks before the expiration of their permit and the application should be submitted on the prescribed form.

Employment in Cyprus

Applications for employment should be submitted not by the person(s) concerned but by their prospective employers in Cyprus to the Migration Department, Nicosia.  Applications should be submitted by the employers in Cyprus on the appropriate forms.  The latter are available from the Aliens Office of the District of residence of the employer who should submit them together with a covering letter and a copy of the offer of employment.  Entertainment of an application largely rests on its contribution to the general economy of the island and its non-competition with the local people.  Each application is treated on its own merits and no general rules for its approval may be given in advance.  Applications usually take 2 to 4 weeks plus to be considered and the result in communicated to the employer in Cyprus.  Persons wishing to travel to Cyprus solely for the purpose of employment are advised to ensure that an employment permit has been secured beforehand.

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Permanent residence in Cyprus

Permanent residence refers to residence of many years and possibly for good.  Certificates of permanent residence granted to aliens are valid for an indefinite period and their holders are exempted from the necessity of obtaining visas when entering Cyprus.  The alien in question must take up residence in Cyprus within one year from the date of issue of the Immigration Permit.

Immigration Permits are classified under 5 categories

Applications should be accompanied by all relevant documents regarding applicant's financial standing.  Applications are made on the appropriate form(s) and submitted to the Migration Department, Ministry of the Interior, Nicosia, Cyprus, for consideration.

Applications under Category F are usually made by persons who wish to retire to the Island

Applicants under this category should be of independent means of support and documentary proof of their income (from Banks, Pension Funds etc) should be submitted together with their applications.

Category 'A'     Farming                                                  
Category 'B'     Mining
Category 'C'     Trade and Business
Category 'D'     Self-employment
Category 'E'     Cyprus employer work

Category 'F'     Applicants of Independent Means:
                     This category is for persons who have a secured annual income, high enough to give 
                     them a decent living in Cyprus without having to engage in any business, trade or
                     profession.  Most applicants come under this category, the majority being pensioners
                     or retired persons.  The annual income required depends on family size, as shown
                     below, but the Immigration Control Board may demand additional amounts.  
                                                       

                     APPLICANT                                                      ANNUAL INCOME
                     Single Applicant                                                     €6,500
                     Applicant and 1 Dependant                                      €9,700
                     Applicant and 2 Dependants                                   €12,900  
                     Applicant and 3 Dependants                                   €16,100

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APPLICATION FOR IMMIGRATION PERMIT
UNDER ANY OF THE CATEGORIES A to F (SPRING 2002)

I hereby apply for a certificate under Category ............. A, B, C, D, E or F .............  Particulars are as follows:-

1.   Full names of applicant
2.   Address
3.   Sex
4.   Profession / Occupation
5.   Married / Single
6.   Place and date of birth
7.   Religion
8.   Nationality (at birth)
9.   Present nationality or national status
10. Maiden name (if applicant a married woman)
11. Change of name by deed poll or otherwise
12. Particulars of passport held:  Passport No. ............................................ issued at.........................................      on .................................................................... valid until ..........................................................and bearing      visa for Cyprus No. ........................ or endorsement granted by ........................... on ..................................
13. Particulars of persons dependent on and accompanying the applicant:

14. Particulars of persons dependent on and not accompanying the applicant:

15. Particulars of previous residence in Cyprus (if any) by applicant giving places of such residence and dates in full

16. Category A (Agriculture or Animal Husbandry)
       Business proposed to be undertaken in Cyprus
17. Interest in land in the Island acquired / for the acquisition of which permission has been obtained.
18. Capital sum held in applicant's own right and at his full and free disposition and where situated.
      (Documentary proof to be attached)

19. Category B (Mining)
      Type of mining in which applicant intends to engage in Cyprus
20. Particulars as to prospecting right or license in possession of / obtainable by the applicant.
21. Capital sum held in applicant's own right and at his full and free disposition and where situated.
      (Documentary proof to be attached)

22. Category C (Trade or Business)
      Trade or business which applicant intends to carry on in Cyprus.
23. Particulars as to license (if license is necessary for carrying on the trade or business) in possession of /
      obtainable by the applicant.
24. Capital sum held in applicant's own right and at his full and free disposition and where situated.
      (Documentary proof to be attached)

25. Category D (Academic Professions)
      Qualifications of applicant
26. Capital or assured income of which applicant is in possession and where situated.
      (Documentary proof to be attached)

27. Category E (Employment)
      Nature of employment (not being temporary employment) which the applicant has accepted in Cyprus.
      (Documentary proof to be attached)
28. Particulars of qualifications.
29. Name and address of employer.

30. CATEGORY F (Applicants of Independent Means)
      Particulars of income and source from which derived.
      (Documentary proof to be attached)

Date and signature
 

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