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Cyprus is a Eurasian island in the
eastern part of the Mediterranean Sea south of the Anatolian peninsula. Cyprus is the
third largest island in the Mediterranean. |
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Climate |
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Cyprus is in the
Mediterranean climate zone, and so benefits from short mild winters and long dry & warm
summers. The island is famed for its sunshine, receiving on average more than 300 days
of it each year - that's nearly double the amount of sunshine than received in most
places in Britain. If you're looking for sunshine and all year round warmth, Cyprus is
the place to be. |
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Location and Accessibility |
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Cyprus is one the most
famous tourist attractions in the Mediterranean and as result of it there are a lot of
options to get there. First - a cheap flight from almost every big European city, and
especially from Britain, Germany, France, Greece. There are many regular and charter
flights from Eastern Europe, the Baltic states, Russia. From the Middle East you can fly
to Cyprus from Israel, Egypt, Jordan. If you go from North America or Australia you will
have to fly via Europe. Another way to get to Cyprus is by one of the regular ferry
lines. The most famous of them is The line between Greece and Israel via Cyprus.
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Buying Guide |
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Acquiring the Title Deed
Transfer of ownership from vendor to purchaser is
processed by the Cyprus Land Registry Office.
To protect the buyer's rights to the property and provide additional safeguards, it is advisable that the contract
of sale be registered at the District Land Registry Office within sixty days from the contract date.
At any time after the purchase, the buyer may sell or dispose of the property, provided that he/she has a valid
contract.
Taxes & Fees
On transfer of the property and registration in the name of the purchaser, the District Land Registry Office will
charge Transfer Fees, which are based on the market value of the property at the time of purchase, and are
calculated as follows:
Transfer Fees:
|
Value of Property |
Transfer Fee |
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₤1 - ₤50,000 |
3% |
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₤50,001 - ₤100,000 |
5% |
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₤100,001 and over |
8% |
Immovable Property Tax, Services Tax
The annual immovable property ownership tax imposed by the government is based on the value of the property.
Certain immovable properties are exempt.
|
Value of Property |
Annual Property Tax (per
₤1000) |
|
Up to ₤100,000 |
exempt |
|
₤100,001
- ₤250,000 |
2.5% |
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₤250,001 - ₤500,000 |
3.5% |
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Over ₤500,000 |
4% |
Examples (All values in
CY₤):
*If the property is registered in two names the
reduced rates on the first CY₤100,000 apply to both buyers.
|
Property Value (CY₤) |
Transfer Fee (if registered
in one name) |
Transfer Fee (if registered
in 2 names*) |
Immovable Property Tax (%
pa) |
|
200,000 |
12,000 |
8,000 |
500 |
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400,000 |
28,000 |
24,000 |
1400 |
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600,000 |
44,000 |
40,000 |
2400 |
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800,000 |
60,000 |
56,000 |
3200 |
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1,000,000 |
76,000 |
72,000 |
4000 |
These fees are usually not payable until 2-3 years
after the handover of the property. If the property is sold in the meantime, the fees become the responsibility of
the buyer.
Stamp Duty
On the signing of a contract the purchaser is liable to pay stamp duties at the rate of CY₤1,50
per CY₤1.000 up to CY₤100.000
and thereafter at the rate of CY₤2 per CY₤1.000.
The purchase contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.
Capital Gains Tax
Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however, the first CY₤10.000
are tax-exempt.
Inheritance Tax
Inheritance tax is not imposed.
Tax Privileges
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are
for personal use and have been used for a reasonable period of time, approximately one year. Also, there is a tax
allowance of CY₤7.000 for one car; for
example, if the tax on the car is valued at CY₤10.000,
then only CY₤3.000 is due.
Tax Advantages
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of
about 5% or less, depending on income.
Additionally, Cyprus has Double Taxation Treaties with many European and other countries, safeguarding its residents
from paying tax in both countries.
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