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Residential Permit

Residential Permit is easily obtained for persons living in Cyprus, who have purchased property with a value of not less of €300.000 (a minimum of at least €200.000 has to be settled at the time of this application). Also the applicant must prove that s/he has at his/her disposal a secured minimum annual income of €30.000, from sources other than employment in Cyprus.

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.

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Property Ownership

In comparison to many other countries the process of purchasing property in Cyprus by foreigners is very simple.
Non Europeans are entitled to a freehold ownership of a villa, an apartment or a piece of land, with maximum allowed extend of 4014 sq.meters (four thousand and fourteen square meters).
Europeans are entitled to a freehold ownership of a villa or an apartment. The above restriction, in respect of Europeans, will hopefully soon be abolished because Cyprus entered the EU. It is very possible that such a change in the legal system will increase demand of real estate sharply with the related reflection on property prices. In respect of plots of land, Europeans can purchase as many and for any extent. This was one of the changes which took place because of the entry of Cyprus to the EU.
Foreign companies can acquire premises for their business or for holiday home for their directors.
Europeans who acquire permanent or temporary permit can register in their name as many properties as they want provided that they sign a confirmation to the government that they will stay for the following five years in Cyprus.

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Mortgage Finance

Most commercial banks in Cyprus are authorized to offer mortgage facilities to local as well as foreign applicants to assist in the purchase of their property.
Taking advantage of its strong relationships with most of the local banks, and in an attempt to reduce finance costs for its customers as well as to speed up the application process, we have managed to set up special finance schemes which are on offer for all the customers.

Mortgage fees

On loans 1%

The transfer of a loan to another financial institution is subject to a levy of the lower of 1% of the new mortgage or €200. Renewal of the loan at the same financial institution is subject to a levy of €50. No fees are imposed on the transfer of mortgage by a company to another company as a result of a reorganisation.

General Information

• The mortgage can be granted in Foreign Currency (e.g. USD, GBP, CHF Etc) or in Euros.
• For a mortgage in Foreign Currency the maximum repayment period can be 15 years.
• For a mortgage in Euros the maximum repayment period can be 25 years.
• In both cases the age of the applicant plus the term of the mortgage cannot exceed the age of 70.
• The maximum amount borrowed can be up to 70% of the value of the purchased property.
• The mortgage is repaid by monthly or quarterly instalments.

Documents/Information required by the banks:

• Customer’s profile (Personal details, occupation-duration of your employment contract if any with your current employers).
• Passport copies (the page with the photograph & personal information).
• Statement of existing debt (if any).
• A reference Letter from the Bank you maintain an a/c with.
• Completion of the Declaration of Personal Income form.
• Evidence of income either pay slip or confirmation of remuneration from your employer, or P60 or business accounts.
• Purchase agreement.
• Copies of bank statements for the last three months.
• Copies of payments already made by the applicant for the property.
• To open and activate an account with the bank

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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 with a Power of Attorney.
The transfer of ownership requires a permit from the Council of Ministers.

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Real Estate Transfer

Real Estate Transfer fees are imposed by the Lands Registry in order to transfer FREEHOLD ownership to the name of the purchaser. The transfer fees are due for payment when the transfer of the title deed in the name of the purchaser takes place. The Purchaser is solely responsible for the payment of the transfer fees. The rates are on a graduated scale.

Value of property (€)	Transfer fee rate (%)
0 – 85.430	3
from 85.431 to 170.860	5
from 170.861 nd over	8

If the property is in joint names e.g. of a couple (husband and wife) or two individuals, then the purchase value is divided into two parts which results in reduced transfer fees.

The following example clearly illustrates this:

For Property in one name
Up to € 85.430,07	@ 3%	= € 2.562,90
from € 85.430,08 to € 170.860,14	@ 5%	= € 4.271,50
The remaining € 29.139,86	@ 8%	= € 2.331,19
Total fees payable		= € 9.165,59

For property purchased for € 200.000 in the names of two persons, the fees payable are € 6.582,80.

For property in the names of two persons
First € 85.430,07	@ 3%	= € 2.562,90 (Share of husband)
Second € 85.430,07	@ 3%	= € 2.562,90 (share of wife)
The remaining of First, € 14.569,93	@ 5%	= € 728,50 (Share of husband)
The remaining of Second, € 14.569,93	@ 5%	= € 728,50 (Share of husband)
Total fees payable		= € 6.582,80

Immovable Property Tax

The annual immovable property tax is imposed on the market value of the property as at 1st January 1980 and applies to the immovable property owned by the taxpayer on 1st January each year.

Market value of property (1/1/1980)(€)	Annual Property tax (‰)
0 to 120,000	0
120,001 to 170,000	0.4
170,001 to 300,000	0.5
300,001 to 500,000	0.6
500,001 to 800,000	0.7
800.001 and over	0.8

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Capital Gains Tax

On gains from disposal of immovable property situated in Cyprus, capital gains tax will be imposed at the rate of 20% with the first € 17,086 being exempt for each person. The gain is the difference between the sales proceeds and the original cost of the property. In the case of a property which was purchased before 1/1/1980, the gains are the difference between the sales proceeds and the market value of the property as of 1/1/1980.
The seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house.
Gains from the disposal of a private residence are exempt up to € 85,430 in total if the owner resides in it continuously for at least five years prior to disposal.
Gains from the disposal of a dwelling house are exempt up to € 85,430 in total if the owner resides in it continuously for at least five years prior to disposal.

Stamp Duty on Contracts

The purchaser is liable for the payment of stamp duty on the purchase price of the property at the rate of € 1.5 per thousand up to € 170.860 and thereafter at the rate of € 2.0 per thousand.
This should be paid within 30 days from signing of the contract of sale.

For example if the purchase price is € 256,290

first € 170,860	0,15%	€ 256.29
next € 85,430	0,2%	€ 170.86
	Total	€ 427.15

Estate Duty

Estate Duty tax has been abolished as from the first of January 2000
(Statute No.78(1)/2000).

Local Authority Taxes & Rates

A rough guide could be approximately € 85 - € 260 per year depending on the size of your property.
This tax is for refuse collection, street lighting, sewerage, etc.
The basic utilities, electricity, water and telephone are payable individually in accordance with the consumption and based on a meter reading.

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VAT

Since 01/05/2004 a new statute in respect of VAT on properties has been introduced. Disposals of newly-constructed properties for which a proper application for planning permit has been submitted with the relevant authorities after 01/05/2004 are subject to VAT at standard rate (currently 17%).
Since 08/06/2012 any person that is buying his/her first permanent residence in Cyprus can apply for a reduced VAT rate (defined at 5%).
It is no longer required (as was previously) to become a permanent resident first, and then to apply for the special rate of 5% VAT. The purchaser must complete a form at the VAT Authorities (like all Cypriot nationals) declaring his/her intention and commitment to use the house that he/she is purchasing, as the permanent residence for himself and /or his family in Cyprus. The same procedure and set of documents, as before, need to be provided in order to secure the certificate from VAT. (This process is the same procedure followed by all Cypriot nationals).
Please note the following important parameters:

• The house must be used only for personal and /or family living of the purchaser.
• It is not permitted to generate any income such as rental, or to utilise the property as an investment or any other type of business.
• The VAT Authorities maintain the right, and most probably at a later stage after possession (6-12 months), to investigate each case to ensure that the purchaser has honoured the above requirements.
• In the event that the purchaser has ceased to use the property as his permanent residence in Cyprus, including resale of the property, within a period less than 10 years from possession, then the purchaser must pay to the VAT Authorities the remaining VAT of 12% (17% less 5%) on the purchase price.

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Tax Advantages

Cyprus is unique when it comes to the taxation aspects of living on the island.

The following income tax rates apply to individuals:

Chargeable income (€)	Tax Rate (%)	Accumulated tax (€)
0 – 19,500	-	0
19,501 – 28,000	20	1,700
28,001 – 36,300	25	3,775
36,301 – 60,000	30	10,885
Over60,001	35

Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% per annum while an annual exception for the first €3,420 is granted.
Additionally, Cyprus has established Double Taxation treaties with the majority of European and non-European countries, safe-guarding that its residents will avoid paying tax in both countries. This gives the option to the citizens of these countries to take advantage of the very low rates in Cyprus.

Double Taxation Agreements

Cyprus has double-taxation agreements with Austria, Bulgaria, Canada the People's Republic of China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Armenia, Belarus, Moldova, Tajikistan, Ukraine, Slovakia, South Africa, Sweden, Syria, United Kingdom, United States, Serbia, Montenegro and other countries.
The main purpose of these treaties is the avoidance of double taxation of income earned in any of the above countries. A credit is usually allowed against the tax levied by the country of the tax payer's residence for taxes levied in the other country.

Duty Free Privileges

Europeans who become permanent residents in Cyprus and were using in their country a car for at least six months, can bring their car to Cyprus and they will not pay import tax.
Furniture can be imported free of any taxes by Europeans or Non-Europeans who become permanent residents provided that they are for personal use and are not brand new.

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Cyprus in Numbers

You must know:

Time: + 2 GMT

Electric Current: 220-240 Volt

Cyprus Currency: EURO (€)

Flight times to Cyprus from:

London	4h 30 min
Frankfurt	3h 30 min
Moscow	3h 20 min
Athens	1h 20 min
Brussels	4h 00 min
Amsterdam	4h 00 min
Vienna	3h 00 min
Bahrain	3h 00 min
Cairo	1h 15 min
Zurich	3h 30 min

Climate & Temperatures

Cyprus enjoys the best Mediterranean climate with approximately 340 days of sunshine per year. Paphos has the finest climate on the island with cooler summers and short mild winters.
The swimming season practically starts from April and does not end until November. Pine forests are close to the coast and it is possible to ski in the mountains and swim in the blue Mediterranean all in the same day.