Limassol Properties – Questions & Answers
Q: Do I need to appoint a solicitor?
A: Yes…regardless if you’re the Buyer or the Seller we strongly recommend that you appoint a lawyer to handle your sale or purchase. The duties of a lawyer involve all necessary searches in the Land Registry Office, the drafting of the Contract of sale, the deposit of the Contract of Sale in the Land Registry Office and your application to the Council of Ministers to own a property in Cyprus, if one is needed.
When choosing a lawyer to represent you always choose one who is reputable and experienced in Real Estate matters and preferably based in the town where the transaction will take place. Needless to say we can recommend reputable Greek, English and Russian speaking lawyers.
Note: If our office is involved in the sale or purchase of the property and our reputable recommended firm of Layers is instructed to handle the transaction our office will absorb all legal fees for both seller and buyer!
Q: Application to the Council of Ministers, do I need to apply?
A: All non-European nationals need to apply for permission to buy property to the Cypriot Council of Ministers. If asked our lawyer will deal with your application fast and efficiently.
If the property you buy is €300,000 euro or more, you can apply for Permanent Resident’s status and you can live in Cyprus or travel within the European Union without any immigration control formalities. More details on request.
Q: Do I need to make a Will in Cyprus?
A: It is advisable to make a Will in any Country where you have immovable assets. Inheritance tax has been abolished in Cyprus.
Q: What is the cost of living in Cyprus?
A: Even though the cost of living has increased in recent years Cyprus still enjoys a relatively low cost of living in relation to many other European countries.
Q: Do EU citizens need a work permit?
A: Since Cyprus entry into the European Union on May 1st 2004 all EU citizens have every right to live and work in Cyprus without restrictions..
All non-Cypriot or non-EU citizens that wish to work in Cyprus must apply to the immigration office to obtain a work permit and social security number.
Q: When is VAT applicable on Properties?
A: The VAT rate in Cyprus that also applied for the purchase of a new property is 19%.
However in June 8, 2012 by force of law of the Republic of Cyprus № 73 (1) / 2012, amending the Law on Value Added (VAT law) of 2000, under the new law, from now on the acquisition of real estate for the citizens of the Republic of Cyprus or EU and third country nationals will be charged at a reduced rate of VAT of 5% instead of the current rate of 19% provided You are a first time buyer and you have no other properties in Cyprus
- There is no VAT for the purchase of a resale property
Q: What is the Income Tax rate in Cyprus?
A: Income Tax
0 – 19,500
19,501 – 28,000
28,001 – 36,300
Q: How about Inheritance tax?
A: There is no Inheritance Tax in Cyprus!
Please note that for Foreign Pensions the first €3,400 of income is exempt each year while the remaining amount is taxed at 5%. The corporation Tax for companies is 12%.
Q: Does Cyprus have an efficient Land Registry Office?
A: Though it can sometimes be slow due mainly to the large volume of work Cyprus still has one of the most reliable and well-organised Land Registry Offices in the world which is based on the British equivalent.
Most land paperwork and registrations were done when Cyprus was still a British colony so the foundations for today’s land and property dealing through the land registry were laid by the British and based on the extremely efficient British model. Purchasing a property in Cyprus is therefore a very safe procedure as long as you use the right professionals and a reputable lawyer.
Q: What is the Legal system in Cyprus?
A: Again, as Cyprus was a British colony the legal system is also based on the British legal system. Since Cyprus entry in the European Union foreign nationals can be even more comfortable knowing that all European laws and decisions now also apply to Cyprus.