An
elegant luxurious property developer in Cyprus....
PHONE +357 77 777 250
Legal & Financial
INFORMATION TO NON-CYPRIOT BUYERS 1. INTRODUCTION St. Chara Developers has created this info package to help you out in your decision-making. In case you need further assistance, please do not hesitate to contact us. 2. FREEHOLD All the property sold in Cyprus is freehold. 3. PRICES, TERMS OF PAYMENT AND MORTGAGES
Prices depend on the size and location of the property.
Properties locate within villages tend to cost less than properties near or within cities.
Payment must come from external funds, foreign exchange, and passed through a local bank so that proof is provided.
Presently local exchange control regulations prohibit foreigners from getting loans, mortgages, from local banks to finance the purchase of property in Cyprus. Recently, several offshore Banking units enable expatriate buyers to get mortgage funds in Cyprus.
4. BUYING PROPERTY
The buyer can hire a lawyer for consultation purposes or to help him/her out throughout the buying process. The cost is about €500 – €1000
The buyer can make the purchase on his own.
PERMISSION TO ACQUIRE PROPERTY Non-Cypriots citizens require permission from the Council of Ministers to purchase property in Cyprus. This permission will normally take 1- 3 months to be granted. St. Chara Developers Ltd. offers assistance in the completion of these forms free of charge. Alternatively, any local solicitor will undertake the formalities on your behalf and forward the forms to the correct government dept for a fee. 5. PROCEDURE Having found the property of your choice, you should examine the sales contract. Upon agreement you should enter into a private contract with the vendor. Under Cyprus Law, all contracts relative to immovable property should be in writing and a copy must be lodged in the Land Registry Office within 2 months after signing, which will prevent the Vendor from selling the property on a second time, and will be a charge on the property pending completion. The cost of lodging the contract at the Cyprus Land registry Office is €1.71. 6. STAMP DUTY Once the contract is signed, the buyer has a grace period of 30 days to pay the stamp duty which amounts to 0.150% of a purchase price up to €170.860 and then at a rate of 0.2% on any purchase price in excess of €170.860 For instance, the stamp duty fees for a property valued at €34.17 will be €51.26. Stamp duty is paid by St. Chara Developers Ltd, which is turn charges, the buyer account 7. TRANSFER OF OWNERSHIP It is a simple process of registration at The Land Registry Office and the issuing of a Title Deed after completion and delivery. This can be done either by St. Chara Developers ltd. at no extra cost or through a lawyer at a charge. Once permission from the council of Ministers is granted, the account with the vendor is settled and the Central Bank has certified the import of foreign funds, you may register the title deed in your name. Transfer fees range from 5% to 8% depending on the purchase price. From €1.71 to € 85.430 is 3% From €85.430 to € 170.860 is 5% From €170.860 and over, any amount is 8% Example For a €150.000 property the transfer fee is € 5791, 40 8. INVESTMENT APPRECIATION It seems that there is a general agreement that property still provides one of the best long-term investments, and an air of confidence among those involved that Cyprus is a good place to buy. 9. SELL YOUR PROPERTY Upon resale, the original purchase amount can be re-exported immediately. Any surplus funds can be taken out of Cyprus at a rate of €17.086 per year plus Bank interest. 10. CAPITAL GAINS TAX Non-Cypriot Investors have no obligation regarding capital gains tax. 11. ESTATE DUTY Property acquired in Cyprus after January 1, 1976 from remittances from abroad is exempt where the deceased had his domicile in Cyprus at the time of his death and was at any time before his death permanently residence outside Cyprus. 12. RETIREMENT IN CYPRUS (a) Permanent Resident To be eligible for a permit of Permanent Residence it is only necessary to be able to show that you are self-supporting and will not require assistance from the state. (b) Standard & Cost of Living Cyprus enjoys a high European standard of living while it remains an inexpensive country. Thus, it enables a retired couple to live comfortably on an income of less than €11.105,91 per annum. (c) Duty Free Privileges Household goods and furniture can be imported free of any taxes provided that they are for personal use and have been used for approximately one year outside the Republic Of Cyprus. Expatriates are able to purchase duty free cars – particularly as the duty rates can be over 150 percent. (Maintenance, repairs and insurance are far cheaper than any European Country, i.e. At both Mercedes and Porches dealers the labour charge is approximately €17.09 an hour plus VAT). (d) Taxation (Pension & Investment) The status of expatriate pensioners in Cyprus depends on whether a social security convention has been signed between the Cyprus government and 1. The government of the “home” country which ensures that their pension entitlements are freely sent to them. Currently foreign pensions remitted to Cyprus are taxed at 5% on the excess over €3417,20 per annum. 2. Remittance of investment income from abroad are taxed in Cyprus to the extent that such income is actually remitted to Cyprus and moreover the first €3417,20 p.a. of such income is exempt all liability to income tax in Cyprus. 3. In Cyprus, all foreign exchange deposits are tax-free. 13. FURNISHED HOUSE/FLAT St. Chara Developers Ltd can furnish and equip your flat at a much lower cost than you possible do. However, you can always do it on you own. If you choose so, the company can provide you with price quotations. 14. WARRANTY St. Chara Developers Ltd shall repair any damage on the property without cost the purchaser provided that the damage was not caused by purchaser’s neglect or improper adjustments. The company warrants the property sold for a two years period from the date of delivery. 15. MAINTENANCE St. Chara Developers Ltd provides its clients with full maintenance schemes all year around. 16. HOUSEMAID St. Chara Developers Ltd provides its customers with the service of house cleaning. The cost for this service depends on the size of the flat/house and ranges from €34,17 – €51,26. 17. PAYMENT OF BILLS St. Chara Developers Ltd arranges the payment of all bills at no extra cost. The customer is billed twice a year with all the expenses paid by the company. 18. EXPENSES – TENANTS SHARE (a) Property tax Property tax in Cyprus costs €5,98 per €1.708,60 of the property value which is quite low. For a one bedroom Flat: Annual property tax is €89,70 For a two bedroom Flat: Annual property tax is €111.60 For a Villa: Annual property tax is €179,40 (b) Refuse Collection and Sewage The fee is approximately €85,43 per annum. (c) Insurance St. Chara Developers Ltd always insures its property against earthquakes, fire and flood. Every year an insurance premium is charged on the buyer’s account for the period of the delivery date up to the date of the ownership transfer. The insurance premium is €2,56 per €1.709,60 of property value i.e. An apartment valued at €34.172,03 then the cost of insurance is €51,26 per year. The buyer can have all his furniture covered by the policy at no extra charge. (d) Electricity & Water Meters Getting electricity and water meters requires a small deposit. 1. Electricity (EAC) €17,09 2. Waterboard €59,08 St. Chara Developers Ltd can arrange the payment of the deposits mentioned above. Then, St. Chara Developers Ltd charges the customer’s account with the above amount. (e) Common Expenses Flat owners have to meet a proportion of the common expenses. i.e. for the lighting and cleaning of common facilities, and the upkeep of a garden and a swimming pool, where there is one. Common expenses are quite low – for a two-bedroom flat they usually do not exceed €107, 64 per year.
