|
|
|
|
|
|
|
|
The historical Island of Cyprus joined the EU in May 2004. You can find a wide selection of
property for sale in most regions. From the west of the Island you can find property in and
around the town of Paphos or in the Polis/Latchi area for those wanting a gentle, more quiet
area for a holiday retreat. Heading east from here, you have the Pissouri are with its
picturesque bay and then we have property in and around the busy town of Limasol as well as
a 20 minute drive inland from here, close to the Troodos Mountains. Coming round to the
east part of the Island, there is property in Larnaca, and then going north, along the
eastern coastline, you will arrive at the well known areas of Ayia Napa, Protaras and
Paralimni where you can find an excellent selection of homes for sale.
Property Ownership
Compare to many other countries, the process of purchasing property in Cyprus by foreigners is
very simple. Non-Cypriot buyers are entitled to a FREEHOLD ownership of a villa, an apartment
or a piece of land. Offshore entities may also acquire premises for their business or for
residence of foreign employees.
Mortgage and Finance
All commercial banks in Cyprus are authorised to offer mortgage facilities to assist in the
purchase of property. The loan will be in foreign currency. The amount ranges from 60-80% of
the value of the property with a repayment period ranging from 7-10 years. Easy terms of
payments and long-term in-house finance schemes are also available.
Income Tax
According to the Cypriot tax system you are obliged to declare your income from pension or
any other sources to tax authorities. Due to several different groups of taxed income you
should contact your legal advisor or the tax authority directory to determine your tax
liability.
Property Taxes, Fees and Rates
A. Real Estate transfer tax-fees. Real Estate Transfer tax-fees are necessary in order
to transfer FREEHOLD ownership to the name of the purchaser. This can be done as soon as the
relevant Government Authority has issued the title deed and the purchase has been completed.
The transferee is responsible for the tax payment. The rates are on a graduated scale.
Should the purchase be made in joint names the effective value for the calculation is halved.
Transfer of ownership takes place by the simple process of registration at the Land Registry
Office and the issuing of a title deed after completion and delivery. This can be done either by
you personally or by a Power of Attorney to your Solicitor. A prerequisite for registration,
in the case of aliens, is evidence that the property has been paid for with foreign exchange and
approval by the Council of Ministers of purchaser's application to buy property in Cyprus. These
formalities can be taken up by your lawyer on your behalf. However, before the registration of
the completed property the purchaser should pay the transfer fees to the Land Registry Office.
B. Stamp Duty. The purchaser is liable for the payment of stamp duty at the rate of
1.50 pounds CY per thousand up to the value of £100,000 CY thereafter the rate is 2.00
pounds CY per thousand. This should be paid within 30 days of signing the contract.
C. Immovable property tax. The annual immovable property ownership tax is based upon the
value of the property.
Important! Immovable property tax is based upon the value of the property in 1980 which is much
lower than the current market value. So there is no immovable property tax for the majority of the
properties in Cyprus.
D. Local authority taxes & rates. A rough guide could be approximately £50-£150 CY
per year depending on the size of your property. This tax is for refuse collection, street lighting,
sewerage, etc. The basic utilities, electricity, water and telephone are payable individually in
accordance with the consumption and based on meter reading.
E. Capital Gains tax. On disposal of the property, capital gains tax will be payable at the rate
of 20% on the gain with the first £10,000 CY being exempt for each person. On top of this allowance,
the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year
and the cost of any additions made to the house. Gains from the disposal of a dwelling house are exempt
up to £50,000 CY in total if the owner resides in it continuously for at least five years prior
to disposal.
Tax Advantages
Cyprus is unique when it comes to the taxation aspects of living on the island. Cyprus has conducted
treaties for the avoidance of double taxation with Austria, Bulgaria, Canada, China, Czech Republic,
Slovakia, Denmark, France, Germany, Greece, Hungary, Ireland, Italy, Kuwait, Norway, Poland, Romania,
Russia, U.K., USA and Yugoslavia. Furthermore, there are negotiation for the ramifications of treaties
with Egypt, Malta, Syria, Belgium, Finland and countries comprising the Commonwealth of Independent
States. The main purpose of of these treaties is the avoidance of double taxation of income earned in
any of these countries.
For example, United Kingdom citizens may take advantage of the Double Taxation Treaty existing
between the U.K. and Cyprus. This enables you to receive your pension and investment income in
Cyprus FREE of U.K. withholding tax. This Treaty is unique to Cyprus since it incised both public
and private sector pensions. Furthermore, Cyprus taxes the assets of ex-patriates only on a
remittance basis. Many ex-patriates can, therefore, keep assets growing free of tax in an offshore
bank, investment or trust and simply bring into Cyprus what they need. The remittance system
compares extremely well with the more common world-arising tax system, used in many other
countries, including favored sunspots like Spain. Recent tax reforms sharply reduce the tax burden
in alien residents, in recognition of their value to the economy.
Duty Free Privileges
Personal effects, household goods and furniture can be imported free of any taxes by immigrant
retirees provided they are for personal use and have been used for a while.
The above information has been supplied in good faith by Ms. Emily
A. Lemonitati who is a licenced Advocate/legal consultant practising in Paphos, Cyprus. Laws
and/or restrictions can change without notice. We at Choice Properties/Cyprus Choice
recommend that this information is clarified before purchasing and project.
Ktima
Ktima (Paphos old town) - A captivating blend of old and new Paphos was once the Roman capital of Cyprus and is
listed by ONESCO as a World Heritage Site. The area abounds in monuments - the House of Dionysis hosts some of
the finest examples of floor mosaics in the Mediterranean region and the Tombs of the Kings, the Christian Catacombs,
ancient Byzantine churches and many other sites are all fascinating reminders of the area's poignant past.
The old town of Paphos, called Ktima is located just above the Harbour. This is a maze of winding streets boasting
a vibrant selection of traditional and modern shops, supermarkets and a colourful indoor market selling locally grown
fresh fruit and vegetables as well as other products for which the area is famous. Ktima is also the commercial and
administrative centre for the Paphos District. Here you can find banks, legal offices, local government department
offices, clinics and medical services, including a splendid new hospital. Just a short drive from Ktima is Paphos
International Airport.
Kato Paphos
Kato Paphos, just below Ktima, is built around a picturesque fishing harbour, which is shadowed by an ancient
fort. An all-year-round holiday atmosphere prevails here. There are plenty of open air cafés, tourist shops and
local tavernas where you can sample a fish maze - a delicious selection of the mornings catch. Here are some of
the best hotels on the island, many of which have regular events and activities for both guests and local residents.
There are also many excellent restaurants serving a variety of international cuisine.
Amongst the gentle hills that roll down from the forested slopes of the troodos mountain range to the Paphos coastline
is some of the islands most stunning countryside. Vineyards and almond groves give way to orchards of citrus, olives
and avocados and at sea level, banana plantations. Here you will discover tiny Mediterranean villages where the donkey
is still the preferred mode of transport and the inhabitants are amongst the friendliest and most hospitable people
you are ever likely to meet.
Akamas Peninsula
North of Paphos is the Akamas Peninsula, an almost uninhabited area, rich in fauna and flora. Along the wild and rugged
coastline are sea caves and remote sandy beaches where turtles come each summer to lay their eggs in the warm, undisturbed
sand. The views from the Akamas hills as well as from the villages above the town are absolutely stunning.
Paphos is the perfect location for those seeking a gentle climate and tranquil lifestyle, but who also wish to remain
within easy reach of modern facilities.
Limassol
Limassol - Fun filled sunshine city of the south coast Limassol is just a 35 minute drive from either Larnaca or Paphos
airports. This cosmopolitan town is one of the island's leading holiday resorts and its 10 mile seafront is lined with luxury
hotels, places of entertainment, a splendid yacht marina and many exclusive residences. There is always plenty to do in
Limassol. In the centre of town are cinemas, theatres, art galleries, first class restaurants and modern shopping centres.
Limassol is also the island's main port and it is here that the luxury cruise liners stop over on their way to the Greek islands
and the exotic destinations of the Near East. In the attractive Old part of town are traditional buildings, small shops, cafés,
artissan's workshops and a bustling fruit and vegetable market. The old town is overlooked by an ancient castle which houses remnants
of Limassol's intriguing past.
It was here, some say, that King Richard the Lionheart of England, on his way to Jerusalem in the third Crusade, married Queen
Berengaria. He must have liked what he saw when he arrived, because he conquered the island and changed the course of its history
forever.
Today, Limassol is a fun-filled city, famous for its annual Spring Carnival and Autumn Wine Festival. The town's broad palm tree-lined
promenade is lined by the sparkling Mediterranean on one side and many chic cafés, restaurants and hotels on the other. At the far end
are the lush tropical gardens of the main park where there is also a small zoo. Limassolians are friendly and hospitable people and famous
throughout Cyprus for their good sense of fun.
Limassol is approximately equidistant from all other major towns and resorts in Cyprus. Within an hours drive you can reach Paphos, Larnaca,
Nicosia and the cool forested slopes of the troodos Mountains. It is also the heart of the island's main wine producing area and just a short
drive inland brings you to the vine-clad slopes and rustic wine villages of the troodos foothills.
The coastal areas are of great historic interest as modern Limassol was built between two ancient city-kingdoms - Amathus to the east and
Kourion to the west. Kourion, dramatically perched on a cliff top overlooking the sea and the west coast, is the larger of the two and
the remains of this vast city include a large Roman theatre where theatrical productions are still staged throughout the summer months.
Nearby, amid the lush citrus groves of the Phassouri Plantation, is Kolossi Castle, once home to the Knights Hospitaliers. It was here
that the islands world famous dessert wine, Commandaria, was first produced. The Akrotiri Peninsula, just south of Limassol, is fringed
with a long sandy beach, known as Ladies Mile. Just inland is a huge salt lake. The lake is a popular stopover place for migrating birds,
including flocks of pink flamingos. The surrounding area, rich in flora and fauna, is a great place for walkers - just one of the many
activities available in the diverse and interesting part of Cyprus.
Limassol is the perfect location for those who enjoy an active, cosmopolitan lifestyle. n protaras - The golden coastline Often described
as the jewel of the eastern Mediterranean, Protaras is an elite beach resort on the south east coast of Cyprus, just a 45 minute drive from
Larnaca International Airport. Like a necklace, a string of secluded golden sandy bays stretch along this ruggedly beautiful coast, each
interspersed with rocky inlets where many colourful fishing boats go for their daily catch.
Here too is the well known magnificent Fig tree Bay, considered to be one of the islands best beaches. The safe, shallow, crystal clear waters
of these excellent beaches are ideal for all types of watersports, including sailing, windsurfing, waterskiing, parascending, snorkling and
scuba diving. Protaras also has many excellent, well established hotels, some of which have regular all-year-round social and sports activities
for both guests and residents of the area.
This is a fun loving resort with much to offer people of all ages. Apart from beach activities, during summer there is a lively holiday
scene with many exceptional restaurants, local fish tavernas, bars and a buzzing nightlife. But winter brings its own special charm to the
area. Between the months of October and May, residents have the long golden beaches to themselves - it is a time to explore and enjoy this
stunningly beautiful and romantic place - to enjoy a beach barbecue with friends, to top up your suntan on your own isolated beach, and to
get to know neighbours and the friendly local people.
The whole region exudes an air of holiday relaxation. Just a short distance inland from Protaras is the small town of Paralimni. The town
maintains much of its traditional charm and there are many fine small tavernas here as well as local craft and souvenir shops. A wander
around the picturesque narrow streets will reveal fishermen quietly mending their nets in the shade of vine covered courtyards. Paralimni
also has a fine selection of modern shops and supermarkets as well as good banking and medical services.
Just south of Protaras is the wild undeveloped peninsula of Cape Greko. A wealth of rare flora and fauna, dramatic rock-scapes with sea
caves and stunning views make this area an ideal place for walkers. Nearby is the famous holiday resort of Ayia Napa with its white sandy
beaches, fun-filled theme parks and lively clubs and bars. Further along the coast towards Larnaca is the attractive fishing shelter of
Potamoe Liopetriou. Here, in this quiet river estuary, elaborately decorated fishing boats laden with multi-coloured baskets of nets set
off on their daily search for your supper. The nearby traditional village of Liopetri is famous for its basket makers - in fact a visit to
any of the small towns and villages of the area will reveal many interesting facets of this rural community and its intriguing past. Protaras
is the ideal location for those seeking a holiday lifestyle.