Buying

• What is Involved?
• Method of Payment
• V.A.T
• Legal Advice
• Wills
• Banking and Financial Advice
• Cyprus Mortgage
• Examples of Running Costs

What is Involved?

Until Cyprus' ascension into the EU in May 2004, a non-Cypriot was limited to purchasing one property in Cyprus. That has now changed and EU citizens are able to buy more than one property or piece of land.

The vast majority of properties are Freehold, which means owning the Title Deeds in perpetuity. The Purchaser and the Vendor are required to sign a contract of sale which is then lodged with Land Registry. On completion, the Land Registry Office transfers and issues Title Deeds.

Method of Payment

1. On signing the contract a holding deposit of €3,500 is required.
2. Thereafter, 30% of the total price is required one month later.
3. The remaining 70% can be paid as a lump sum, in stage payments or by a mortgage.

V.A.T

Developments that have been granted planning permission after May 2004 are subject to VAT at a rate of 15%.

 

Legal Advice

The Legal System in Cyprus is based heavily on the British Scheme and therefore benefits the buyer. Once the contract of sale is signed and lodged with the Land Registry, the Purchaser's ownership rights are protected and the property can not be leased, transferred, sold or mortgaged by anyone other than the purchaser.

Shervingtons can introduce you to a reputable lawyer who will:

• Study, prepare and check the Contract of Sale
• Become your Power of Attorney
• Lodge the Sales Contract with Land Registry for 'Specific Performance'
• Apply to the Central Bank for the approval of Title Deeds to be transferred
• Transfer the Title Deeds

All recommended lawyers are legally trained in Britain and produce all contracts in English.

Wills

Once you have purchased property in Cyprus it is essential to protect your asset by setting up a Will in Cyprus.

One of the greatest advantages of the current law in Cyprus is that there is no inheritance tax connected with movable and immovable property - in the jurisdiction of Cyprus- passing on to beneficiary(ies) in the event of death of the testator.

The services offered include through our company Lawyers include:

• Drafting Wills

• Obtaining Probate Order

• Administration of Estates

• Resealing

Banking and Financial Advice

We can assist you in setting up Sterling and Cypriot accounts which will allow you to transfer money directly from the UK. Applications can be made for a capital and interest loan of up to 80% of the value of the property and we can introduce you to financial experts who can advice on:

• Taxation
• Formation of Off-shore and Cyprus Companies
• UK and Cyprus Mortgages
• Avoiding Inheritance Tax and EU Savings Tax
• Saving Bank Charges and fixing better Exchange Rates on money transfers from the UK, including mortgages, pensions and lump sums

Obtaining a mortgage in Cyprus is a painless and straight forward process and with extremely low interest rates and no penalty fees, this is a favourable way to proceed with a property. The following documents are required to support the application:

Mortgage Checklist

1. Copies of passports
2. Proof of residential address i.e.: utility bills
3. Official confirmation of household income i.e.: 3-6 months wage slips
4. Sales Agreement
5. Receipt of the reservation and deposit
6. Statements of any other mortgage loans in the UK or Cyprus
7. 3 months Bank Statements (most recent)

An Example of Annual Running Costs

Located in the traditional village of Tala, these impressive apartments lie in an elevated position that commands panoramic views of the undulating coastline below. These spacious apartments appear to be villas on the eye with pillars and stone features. A meandering river emerges from a rockery and flows through two pools, ending at a third split level infinity pool. The beautiful landscaped gardens add to the desire of the resort.

An Example of Annual Running Costs

The development is in a prime location that enjoys the best of both worlds and has been a popular choice for homemakers and investors alike. Within walking distance you will find a wide choice of bistros, cafes, bars and shops in the village square. Within a few kilometers you will discover the tourist delights of Coral Bay and the site for the forthcoming CY£400 million marina.