1.  Do the properties have title deeds?

Properties have title deeds. The title deeds are transferred to the buyer's name as soon as they are issued by the Land Registry Department and following the settlement of the agreed selling price, and the Council of Ministers approved.

2. What are the property taxes/fees?

The Property Transfer Fees are payable ONCE only to the Land Registry Office according to the following scale:

Value of Property Transfer fee rate CY Pounds % up to 50,000 from 50,001 - 100,000 from over - 100,000 3.0 5.0 8.0 For example: Purchase price CY£ 85,000 1st CY£ 50,000 Next CY£ 35,000 3% = CY£ 1500 5% = CY£ 1750 TOTAL CY£ 3250 = 3,82% Immovable Property Tax The registered owner of the property is liable for this annual tax which is based on the value of the property. Value Cy Pounds Annual Tax   Pounds per Thousand     up to 100,000 exempt 100,001 - 250,000 2.5 250,001 - 500,000 3.5 over 500,000 4.0

3.  What are the yearly charges?

Communal expenses vary from apartment to private villa starting from 200 CYP per year for a project with communal swimming pool and gardens. Yiannakas Real Estate Ltd properties have the initial         5 years  FREE of these charges

4. Can i buy a property easily?

Compared to many countries buying property in Cyprus is very easy. As a non-Cypriot, you are entitled to FREEHOLD ownership of a villa or an apartment or a piece of land up to 4,000 sq.m. If you are of Cypriot origin there are no restrictions.
Offshore entities may also acquire premises for their business or for residence of their foreign employees. Yiannakas Real Estate Ltd legal department will guide you through the whole process.

5. What about resident permits?

This permit is easily obtained for persons living in Cyprus and have purchased property. The granting of the permit is also based upon the level of foreign income available to support oneself and this refers to pensions and income from investments. Leptos Estates will assist you with all these simple formalities.

6. Property ownership by foreigners in Cyprus
Ownership in Cyprus means acquisition of a freehold Title Deed by a relatively simple procedure through the Cyprus Land Registry Office. Non-Cypriots are allowed to buy a property not exceeding 2 denims (267sq.m) for their personal use –in some cases permission has been granted for larger properties. A permission must also be obtained from the Council of Ministers. This permission is usually granted as a matter of course to all bona fide purchasers. These regulations will, of course, change once Cyprus’ accession to the EU is complete. Although it is not necessary, non-Cypriot real estate owners may apply for permanent residence status, by providing the Authorities with evidence of : their self-financing status, a copy of their Contract of Sale, copies of their pension/retirement income and their passport.

7. Duties and costs involved with purchase of real estate

i. Signing of contract. Stamp duties amounting to 15 cents per 100CYP up to 100,000CYP purchase and 20 cents per 100CYP for any purchase amounting more than 100,000CYP.

ii. Transfer of title deed in Purchaser’s name. Transfer fees range as follows:
3% (1-50,000CYP), 5% (50,001-100,000CYP) and 8% (100,001CYP)

iii. Insurance: As from date of delivery, all owners should insure their property, for which an annual fee of approximately 200CYP is required.

8. TAX RATES

i.Income Tax (2002): An individual is classed as a resident once he/she spends more than 183 days per fiscal year in Cyprus. For non-Cyprus residents taking up employment in Cyprus a special exemption from income tax will apply for the first 3 years of their employment in Cyprus amounting to 20% of income earned or 5000CYP whichever is lower.
Yearly income of less than 9000CYP is tax-free. A rate of 30% applies for yearly income ranging between 9001-12000CYP, reaching 40% for yearly income above that amount. Dividend and interest income from Cyprus and abroad is fully exempt as from 2002 onwards. No taxation is imposed on profits from the disposal of securities and profits earned from a permanent establishment abroad.

ii. VAT: VAT is currently at 13% and is expected to rise to 15%, nearing Cyprus’ accession to the EU.

iii. Immovable Property Tax: Property of value up to 100,000CYP is tax-free. A 2.5% tax rate applies for property valued between 100,001-250,000CYP, whereas properties whose value ranges between 250,001-500,000CYP are taxed at 3.5%. For any properties over and above that amount, the taxation rate is 4%.

iv. Capital Gain Tax: Profits from the disposal of Immovable Property, as well as shares in companies which own immovable property in Cyprus, are taxed at 20%. Profit is taken to be the difference in the value of the property, increased by the rate of inflation, from the date of the acquisition to the date of the disposal.
The purchaser reselling his/her property is allowed to remit the full amount paid for it in foreign currency abroad. Proceeds from any increase in the value of the property can also be remitted abroad subject to a limit of 10,000CYP per year, beginning in the year following the sale. Exchange controls will be abolished once Cyprus’ accession to the EU is complete.

9. Financing the purchase of a property

A loan of up to 150,000CYP per person can be obtained from local banks, although there is no ceiling imposed for loans through UK branches of the same banks. Requests for greater amounts can be examined. 30% of the total purchase price is required prior to the release of the loan. Repayment is spread over monthly instalments for a period of 8-10 years. Interest is variable and equals Libor+margin 2.0-2.5%. A one-off charge of 0.5% is imposed on the total amount of the loan, which can be borrowed in a number of currencies