Acquisition
of property in Cyprus
Under the Immovable Property Acquisition (Aliens) Law
Cap 109 permission must be sought from the Council of Ministers
for any non-Cypriot person before they may purchase property in
Cyprus. Permission has to be granted for the purchase of
freehold and on leases of 33 years or more. Application must
be made in writing and is normally straight forward with
permission being granted to alien individuals who meet the
normal requirements. This permission enables non-Cypriots in
purchasing property or land. The maximum amount of land an alien
is allowed to purchase is 2 donums. This permission is granted
for personal use. The requirements for commercial usage is
completely different and is dealt with separately.
Disposal
of property in Cyprus
There are no restrictions for an alien being able to sell
their property or dispose of it by Will once permission has been
granted from the Council Of Ministers and the property has been
transferred into their name. Also, a legal heir to a property is
not required to seek permission to have the property transferred
into their name.
Contracts for sale or lease
All Law contracts must be in writing as per the law in Cyprus.
Within two months of the signing of the Contracts of sale they
should be submitted to the appropriate District Lands Office.
This ensures that in the event of any breach the purchasers
right to pursue the remedy of specific performance is protected.
Transfer
of title
Once permission has been granted and the importation of foreign
funds has been certified by the Central Bank transfer of title
can take place. The purchaser is responsible for the payment of
the transfer fees based on the sale price.
Payment - Exchange control
The Approval of the Central Bank is required for the
purpose of transferring of property to non-Cypriots. For this
approval to be granted the applicant must prove that the
purchase funds have been imported into Cyprus. Permission to
remit these funds out of Cyprus in the event of a subsequent
sale of the property will not be granted without this approval.
Capital
gains tax
Capital gains tax is at the rate of 20% on gains of more
than CYP10,000 arising from the disposal of property by
individuals.
Property
tax
An annual amount of CYP2.00 per thousand of the market
value of the property is payable with the first CYP100,000 being
exempt.
Estate
duty
Estate duty has been abolished in
Cyprus.
Other expenses
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a.
Water rates and electricity are charged on
consumption.
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b.
The costs for Refuse Collection vary between CYP50 to
CYP100
per year
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c.
Municipality of
village rates are minimal and are approximately
CYP50
p.a.
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d.
Common maintenance charges are applicable in apartment
blocks or multiple complexes. This charge covers such
things as lighting, staircases, lifts and
swimming pools
etc.
It is advisable to ask the developer of this cost
before any
agreements are
made.
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Buying
property in Turkish Occupied Northern Cyprus
The non-recognition of the "Turkish Republic of Northern
Cyprus" and the possibility of a future political
settlement in Cyprus could have implications for those
considering buying property in the north. Before purchasing a
property you are advised to seek legal advice.
Courtesy
of http://www.fco.gov.uk
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