Продажа вилл и апартаментов на Кипре

Финансовая и юридическая информация

BUYING A CYPRUS PROPERTY

The procedure in brief

According to Cyprus Law the purchasers need a written contract of sale, which will be stamped and lodged at the Land Registry Office for Specific Performance purposes. This gives the purchasers the security of a legal charge over the property, which will remain up until the time of transfer of the title deeds to them. The purchasers must lodge the contract of sale at the Land Registry Office within two months from the date of signing. Otherwise the purchasers will not be able to specifically enforce the transfer of the property to them through the Court, but will only have a claim in damages for breach of contract, in the even that the Vendor fails to transfer title to them.

Non-European citizens and European non-residents of Cyprus must apply to the Ministry of Interior for permission to acquire immovable Cyprus property.

European citizens can buy land without having to obtain any form of permission.

As soon as the above permissions have been obtained and as soon as a separate title deed has been issued by the Land Registry Office, the Purchasers will then be in a position to accept transfer of the title deed into their names.

Any Company that is registered in any member country of the European Union, and has its registered address and/or activities in Cyprus will be allowed to purchase immovable Cyprus property without having to apply for the above said permissions/permits.

Stamp Duty

The contract of sale must be duly stamped and the stamp duty is 1,5 per thousand for the first € 170.860,14 of the purchase price and 2 per thousand for the balance of the purchase price. The stamp duty should be paid within 30 days of signing of the contract

Transfer Fees

On transfer of the title deed into the name of the Purchaser, the Purchaser must pay transfer fees to the Land Registry Office.

Transfer fee rates are as follows:

VALUE OF PROPERTY (EURO)                                    TRANSFER FEES
up to         85,430.07                                                        3%
between    85,430.08 - 170,860.14                                     5%
over          170,860.15                                                      8%

However, if the purchase is made in joint names the effective value for calculation is halved.

Immovable Property Tax

The immovable property tax is based upon the value of the property on the 1st of January 1980. If the value of the property at that time exceeds € 170.860,14, then the registered owner of the property must pay immovable property tax according to the following scales:

Value of property at 01/01/1980 (euros)                      Annual property tax

up to 170,860.14                                                           exempt
170,860.15 - 427,150.36                                                 0.25%
427,150.37 - 854,300.72                                                 0.35% 
over 854,300.73                                                             0.40%


Capital Gains Tax

Capital gains tax is imposed on the gains accruing to any person from a disposal of immovable property. Capital gains tax is imposed at the rate of 20% on the gain.

The following allowances are given:

  a) €17,086.01 personal allowance (can be used only once)
  b) €85,430.07 from the disposal of a dwelling house, provided that the house was the
      main residence of the taxpayer for a total period of not less that five years prior to
      the disposal.

Bank loans to non-residents for purchase of property

The commercial Banks in Cyprus are in a position to examine requests for loan facilities to non-residents for the purchase of immovable property in Cyprus. The loan repayments must be made in foreign currency.

Wills

It is preferable to make a will in Cyprus to cover movable and immovable property in Cyprus. The will can be worded in such a way as to deal with Cyprus property only so as not to affect either property in other countries or any wills already existing in other countries.

A will made in another country referring to Cyprus property may be valid in Cyprus, but it should be noted that on the death of the testator the Grant of Probate must first be obtained in the country where the will was made and then “resealed” in the Cyprus Courts, which inevitably leads to excessive delays and additional expense.

There is no Inheritance Tax in Cyprus.



Please Note

The above information has been compiled as a general set of guidelines only and for most of the procedures mentioned it would be advisable to seek legal advice.

Information supplied by Kalogirou Law 

Haris Kalogirou and Sofia Nicolaidou Kalogirou.
KALOGIROU LAW OFFICE
Mailing Address: P.O.B. 61033, CY8130 Paphos, Cyprus
Telephone No: 00357-26-220808
Fax No: 00357-26-220545
email: info@kalogiroulaw.com

 

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