BUYING IN CYPRUS
THE
KEY TO THE PERFECT LIFESTYLE
FINDING THE IDEAL HOME IN CYPRUS
 Now
that your finances are in place, it’s time for the hunt and to
find the perfect home in Cyprus to suit your budget and lifestyle.
This is the time to become realistic about
your choices and it is advisable to make a list of your requirements.
This is the time you need to detach yourself from emotional or impulsive
buying.
A little pre-planning can save you a great
deal of time as there is no point wasting valuable time and energy inspecting
properties that are out of your price range and/or not suitable to your
needs and requirements.
There are number of factors to consider
when making the final decision. Primarily you will need to determine
and match the home that is most likely suited to your budget and lifestyle.
It is a good idea to make a list of preferences
and requirements before you start. A number of factors will affect your
purchase for example if it is for investment you need to consider whether
the property is a location where it will obtain good returns, capital
growth etc.
At Cyprus Home Search we can assist you
with finding everything from distinctive villas, maisonettes, terraced
townhouses, luxury mansions, countryside bungalows and village cottages,
seaside apartments, penthouses and commercial/retail premises in Cyprus.
Just click on the contact page
to register your details and we will respond to your request.
CHOOSING
THE RIGHT AREA
 When
choosing the area to purchase your home in Cyprus, you will need to
consider a number of factors. Primarily you will need to determine and
match the home that is most likely suited to your budget and lifestyle.
It is also important to become familiar and get to know the characteristics
and geographics of the area as you will need to consider proximity to
shopping, transport and all amenities.
Other factors, which will effect your
final decision, are whether the property is close to a motorway and
what known future developments are planned within the area as this could
have an affect on the value of your property.
Choosing the right area will require extensive
research. If you already have friends or relatives living in Cyprus,
they are always a goods source of information. The local Cyprus papers
that are published in English feature specific classified sections of
houses for sale. Overseas Property Exhibitions are another useful source
of information.
At Cyprus Home Search
we work very closely with our clients so as to provide the utmost professional
service and suitable choices of properties. We endeavor to make the
process to purchase international real estate as straight forward and
painless as possible. We work to match suitable properties from our
extensive property portfolio and advise on areas most likely suited
to your needs. Click on Contact Us
When you take into consideration travel
and time to view property in Cyprus, you should give yourself a good
six months to find a suitable home from the planning stage. Certainly
if you have not found your dream home, it is time to rationalize and
to revisit the properties you have already inspected and it may be time
to compromise ie if a home does not feature all your requirements.
If you are in the market to purchase
a unit, townhouse or home, here are a few points to remember to check
and questions to ask prior to purchasing:
UNIT, TOWNHOUSE
BUYER
- Check the common expenses and levies
payable per annum;
- If it is an existing building, has the
building and common areas been maintained to a satisfactory standard;
- If you have pets, are pets accepted in
the development;
- Does the apartment have enough storage
space;
- Are all amenities nearby;
- What are the annual rates;
- What is the settlement date;
- When do you get Title Deed
HOME BUYER
- If it is an existing home has it been
maintained;
- Has there been an illegal building works;
- Are all amenities nearby;
- What are the annual rates;
- What is the settlement date;
The table provided below can be used as
a rough guide and checklist when inspecting properties.
|
CYPRUS
HOME SEARCH INSPECTION CHECKLIST |
|
ADDRESS |
|
|
 Property Address |
|
| Purchase
Off Plan or Resale |
|
| If
Resale Age |
|
| Sale
Price |
|
| Agents
Name |
|
| GENERAL
DETAILS |
|
| House
Type |
|
| How
Many Stories High |
|
| Land
Size & Floor Area |
|
| If
Resale - Year Built |
|
| If
New – Estimated Completion Date |
|
| Proximity
to Transport & Shops etc |
|
| Any
Pet Restrictions |
|
| Any
Approval for Future Extensions |
|
| BATHROOMS
|
1 |
2 |
3 |
4 |
Bath |
|
|
|
|
Shower |
|
|
|
|
Vanity |
|
|
|
|
Cupboard |
|
|
|
|
Ventilation
Fan |
|
|
|
|
| Power
Points |
|
|
|
|
| KITCHEN |
|
| Floor
Area |
|
| Airconditioning |
|
| Central
Heating |
|
| Cooktop
Gas or Electric |
|
| Oven
Gas or Electric |
|
| Rangehood |
|
| Dishwasher |
|
| Cupboards
and Benchtops |
|
| Flooring |
|
| Breakfast
Bench |
|
| Power
Points |
|
| LIVING
AREAS |
Lounge |
Dining |
Family |
Study |
Floor
Area |
|
|
|
|
Airconditioning |
|
|
|
|
Central
Heating |
|
|
|
|
Central
Heating |
|
|
|
|
Fireplace |
|
|
|
|
Flooring |
|
|
|
|
Balcony |
|
|
|
|
Storage |
|
|
|
|
Phone
Connection |
|
|
|
|
Power
Points |
|
|
|
|
| OUTDOOR |
|
|
Land Size |
|
| Aspect |
|
|
Fencing |
|
| Garage/Carport |
|
| Driveway |
|
| Garden
/ Landscaped |
|
|
Pool |
|
| Verandah
/ Pergola |
|
| Roofing |
|
INVESTING IN A
NEW LIFE – INVESTING IN CYPRUS
 Whether
you are seeking a sea-view apartment, sophisticated island villa or
traditional country village bungalow, upon receipt of your request CYPRUS
HOME SEARCH can assist throughout the whole purchase process.
When a purchaser has identified the property
as being the one intended to purchase, an “Option to Purchase”
deposit can be paid which is an act of good faith that purchaser secures
the property to purchase. This holding deposit can be anywhere between
£1,000 CYP to £10,000CYP. In many cases it is nonrefundable.
A written offer in the form of a contract is then drawn up.
It is recommended to seek independent
legal advice in order that your solicitor can check that there is nothing
in the contract that is detrimental to the purchase of the property.
CYPRUS HOME SEARCH can recommend a number of independent
legal advisors in Cyprus to look after your interests.
Before you engage a solicitor be sure
to ask the following questions:
- How much does the solicitor charge
for conveyancing? Make sure the price is competitive.
- Is the Solicitor licensed to do conveyancing?
- Are incidentals included in the conveyancing
fee?
- Are there any hidden costs that you
should expect?
- What are contact details and working
hours?
Contracts are prepared in duplicate and
provide details as to the names of the vendors and purchasers, the description
of the property, the price, the terms and conditions, timetable and
any special conditions that are agreed upon by both parties.
Once Settlement is completed the Vendor
is expected to give vacant possession to the Purchaser.
THE PURCHASING PROCESS
 Non-Cypriots
are currently entitled to Freehold ownership of up to a maximum of three
donums [4014 square metres] through an application to and approval by
the Council of Ministers. However there are cases where permission may
be given for ownership of a larger area.
A completed application form is submitted
to the District Officer in the district where the property is situated.
The District Officer submits a report to the Council of Ministers for
approval.
The letter of approval or refusal may
take up to six months or even longer. However, there is no restriction
in taking possession of the property in the meantime.
The permit for the acquisition of immovable
property by a foreigner is granted only if:
a)
The house will be used only for his own residence and the building
plot or land does not exceed 4,014 square metres
b) It is used for professional
or commercial business.
c) It is used in manufacturing
in areas where the Council of Ministers believes that it will be for
the benefit of the Cyprus __.economy.
In the case of non-Cypriots it is a prerequisite
that the property be purchased with foreign exchange.
PROPERTY TAXES
AND FEES
 Immovable
Property Tax
This tax is imposed on the market value
of immovable property as at the 1st January 1980 and applies to the
immovable property held by the tax payer on the 1st January of each
year.
The tax rates are as follows:
| Immovable
Property Tax |
| Property
Value CYP |
Rate
per thousand % |
| 0-100.000 |
0 |
| 100.001-250.000 |
2 |
| 250.001-500.000 |
3 |
| Over
–500.000 |
3.5 |
Every
registered owner whose immovable property exceeds CYP100.000 must submit
a declaration of immovable property (IR 301 and IR 302) and pay the
respective tax every year before the 30 September.
Capital Gains Tax
On disposal of the property, the owner
will be liable to capital gains tax at the rate of 20 per cent on the
gain. The first CYP10.000 (or CYP50.000 in the case of one’s private
residence) is exempt and there is also an indexation allowance.
Transfer Fees & Title Deed
Transfer of ownership is a simple process,
which takes place with the Land Registry Office for issuing of Title
Deed after completion and delivery. When the Land Registry Office registers
the immovable property in the name of the purchaser and the Title Deed
is issued by the relevant Government authority, the purchaser must pay
the applicable transfer fees.
As from 19th March 1999 the transfer fees
are as follows:
| Transfer
Fees |
| Value
of Property CYP |
Transfer
fees rate per cent |
| 0-50,000 |
3% |
| 50,001-100,000 |
5% |
| over
100,000 |
8% |
The purchaser is liable to the payment
of the transfer fees on the basis of the value of the property as assessed
by the District land values.
Stamp Duty
The purchase contract should be stamped
within 30 days of the its signing at the rate of
1.5 per thousand up to CYP100,000 and thereafter at the rate of 2.0
per thousand.
Residential Permits
Residence Permits are granted to purchasers
of property provided that an application to the Ministry of the Interior
has been completed and lodged and that the applicant has satisfactory
financial standing.
For further details regarding taxes as
well as Resident and Work Permits click
on TOTALSERVE
INSURANCE MATTERS
IN YOUR HOME
Now that you have invested in the future,
it is time to protect your asset by insuring your home and contents.
BUILDING INSURANCE
 Comprehensive
Home Insurance is an essential part of the process and a compulsory
requirement by lenders in order to consider loan approval. Home Insurance
protects you should your home suffer the consequences of earthquake,
fire and force’ majuere.
CONTENTS INSURANCE
Protection of your assets should be extended
to the ‘home contents’. Home contents insurance protects
your possessions against damage and theft. As conditions vary from insurer
to insurer, it is worth your while to shop around for comparative quotes.
It is important to check all your policies
in detail to ensure your level of cover is sufficient as it is a common
mistake of many to under-insure their property and contents.
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