Purchase a property in Cyprus
Purchase a property in Cyprus
Purchase a property in Cyprus is a profitable investment:
• safety and low cost of living;
• environmentally friendly areas;
• the possibility of obtaining citizenship under a simplified procedure by the whole family;
• developed infrastructure, tourism, business (offshore zones, with simplified taxation);
• visa-free regime for the countries of the European Union.
Affordable property purchase
A non-resident can buy property in Cyprus, all you need is to have the right amount. Purchasing process:
¥ choice of the option is made by using the official web portal, where you can specify in the search interesting categories (number of storeys, number of rooms, etc.);
¥ opening an account in the bank branch of the country for the possibility of reserving an object. The deposit amount is start from 5 thousand euros, in case of the refusal of the reserve – is not returned. But the deposit guarantees 100% withdrawal from the sale of the object and fixation for the client;
¥ the contract of sale is signed by a notary within thirty days upon making a deposit of thirty percent. It is practical to apply to the services of a lawyer who will be the representative in the country and will fully execute the registration with the application for confirmation of the purchase and sale agreement by the Council of Ministers of Cyprus;
¥ after the state registration of the right to own property, the rest of the cost is paid and registered at the Land Office (“Title of ownership”).
The whole process takes no more than two weeks, with the participation of an independent lawyer even faster.
“Pitfalls” or features
Acquisition of property in Cyprus has certain features for an individual, namely:
¥ total purchase area should not be more than 4014 sq. M .;
¥ non-resident has no right to purchase non-commercial fund of commercial nature;
You can arrange a house, apartment or another for members of the family or other persons;
¥ residence permit, proof of permanent residence in the country for more than five years guarantees the right to purchase any kind of property;
When you purchase a property, there are certain tax payments:
¥ Stamp duty, where from every 1700 euros a rate of 2.6 euros is paid if the amount of the property is over 170 thousand euros – 3.4 euros from every 1700 euros;
¥ registration of the contract of sale – 50 euros, concessions – 0.5%;
¥ The standard VAT rate is 19%, or a 5% discount. In order to receive a preferential tax, one of the conditions is a permanent residence in the territory of Cyprus and no exceeding of the total area of the object 275 sq.m. Do not have any other real estate that has already been bought for a reduced tax. The VAT exemption is a refundable means, upon purchase 19% is paid, then the income declaration is submitted and upon confirmation, the tax is reduced by 5% and the previously deposited funds are returned to the settlement account;
¥ legal services – not less than 1 thousand euro;
¥ power of attorney – 20 euros;
¥ registration of ownership for the buyer will be 3% to 85 thousand euros, 5% – up to 170 thousand euros, 8% – more than 170 thousand euros;
¥ a single tax on real estate and connection of house communications is established by regions.
Crediting of foreigners
In Cyprus, there is a version of the loan for foreigners, subject to certain conditions:
¥ the purchase price of the object must be at least 100 thousand euros, up to 70% of the tax value;
¥ an average rate of 5-7%;
¥ crediting period from 5 to 35 years;
¥ age limits – up to 67 years.
Mandatory package of documents is a foreign passport, a certificate of the buyer’s income, payment of the mandatory stamp duty, permission to purchase approved by local authorities, the main contract (purchase / sale).
Maintenance of property
Any property requires constant maintenance. Approximate list of costs for the maintenance of the object:
¥ annual property tax from 170 thousand euros to 427 thousand euros – 0.2% of the total amount; up to 827 thousand euros – 0.3%, over – 0.35%;
¥ local tax – up to 170 euros per year;
¥ with an average level of electricity consumption – 3-6 euros per month;
¥ water supply and sanitation – 12-14 euros per month;
¥ gas (supplied in cylinders) – 1 cylinder = 12 €;
– export of solid waste – up to 80 euros per year;
¥ connection: fixed – 8 euro; mobile – 0,1 euro per 1 minute;
¥ the cost of an Internet connection depends on the type of the selected line;
¥ cleaning of the house territory per year – up to 1200 euros;
insurance premium – 2.5 euros for every 1 thousand euros of the total cost of the object