Land Registry Department

The Land Registry system in Cyprus was originally based on British standards. It was established during 1875. Throughout the years it has been updated making it one of the most sophisticated land registry systems in the world.

Purchasing property in Cyprus, therefore, is a very straightforward procedure.

Permission to buy property

Permission to buy property must be sought from the Council of Ministers by written application, which must be submitted by the non-Cypriot purchaser after the agreement is signed. However, this permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.

EU citizens that are permanent citizens in Cyprus do not require permission to buy any immovable property. Legal entities established in EU countries that hare their headquarters and registered office in Cyprus, do not require permission to buy any immovable property. Legal entities established in Cyprus and controlled by citizens of the EU require permission to buy immovable property in Cyprus as well as any other legal entities. Cybarco undertakes to submit the application on client’s request at a fee.

Financing for the purchase of property

Yes, you can get financing schemes through all banking institutions in Cyprus. The base rate of interest charged is specified by the Central Bank of Cyprus and currently is 5,5%. Also you can get financing from banking institutions abroad.

Financing schemes for overseas buyers can be made on their local currency and allow repayment periods of up to 10 years or in Cyprus Pounds with repayment period of up to 25 years.

Legal costs incurred

You may request advise from an experienced property solicitor before signing a contract of sale. The fees might range between £800 and £1000, payable on signing the contract, to the solicitor.

Property duties and other costs with the purchase of property in Cyprus

Stamp Duty and Mortgage Fees:

In case of a sales contract the purchaser is liable for the payment of stamp duty at the rate of 1,5 per thousand of the value up to £100.000. Thereafter the rate becomes 2,0 per thousand. The duties and fees are payable upon signing the contract of sale.

Transfer Fees:

The transfer of title can be effected once the Council of Ministers’ permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds.

Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:

Value up to CY£ 50.000  3% 

CY£ 50.001 - CY£100.000 5%

CY£100.001 - and over 8%

Transfer fees are charged accumulatively and are payable at the time of issue of title deeds (usually it is 3 – 5 years after final delivery of property). For properties owned by a couple, transfer fees are charged on the 50% of the property value for each, providing an advantage for any property value exceeding CY£50.000.

VAT payable on property

Since Cyprus accession to the E.U., VAT must be paid when buying a house. In cases though were an application for a town permit was filed before the 1st of May 2004, VAT will not be charged.

For projects that the town planning application has been filed after the 1st of May 2004, VAT will apply on the sales price. VAT applied will have two rates, 5% for the first purchase of residence by permanent residents of Cyprus and 15% for any other purchase. For the purchase of land, no VAT will be applied until the year 2007.

Capital gains tax

Should the purchaser decide to sell the property at a later date, Cyprus Law allows the full amount paid for it in foreign exchange may be transferred abroad at the time of resale. The equivalent of the full purchase price and any increase in the value of the property may be transferred immediately. Property sales in Cyprus are subject to capital gains tax at the rate of 20% on the gain, however, the first CY£10.000 of gain are tax-exempt. If a couple jointly owns the property, CY£20.000 of gain are tax-exempt.

When you sell for the first time your private residence of which you were the owner for at least 5 years, then it is tax-exempt up to CY£50.000.

Annual property tax

Immovable Property Tax:

The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1st of January 1980. This varies according to values between 0 – 4 CY£ per thousand. Average cost is CY£50 – CY£100 per annum, per unit.

Other Property Taxes:

There are taxes paid to the Municipality and depend on the size and value of the property. It covers refuse collection, sewerage, street lighting, etc. and it varies according to the area, from CY£50 – CY£150 per annum per unit property.

Inheritance Tax

There is no inheritance tax in Cyprus.

Legal safeguards for foreign buyers

Same as for locals, the contract of sale must be in writing and it is advisable to be registered at the District Land Registry within sixty days from the contract date. This protects the buyer’s rights to the property and provides additional safeguards. Also, when the title deed is issued (2 – 5 years after the completion of the project), it will be registered in the name of Cybarco Ltd and then it will be transferred to the buyer and recorded in the government archives. The government archives are confidential and will not be published or made accessible under any circumstances.

Contrary to some other countries, where the purchase of property is linked with inherent risks, Cyprus has never been involved in the nationalisation of any sector of the economy, or in the expropriation of property owned by non-Cypriots, in line with the government’s efforts to create a favourable climate for such investments.

Selling your property

Provided that you have a valid contract and a purchaser. If the buyer wants to sell the property before the title deeds are issued, the contract between him/her and Cybarco will be cancelled and a new one will be issued between Cybarco Ltd and the new purchaser. Cancellation fees are charged to the seller at CY£1.500, covering cancellation fees and expenses.

Lifestyle

You can take your time and really enjoy life at a slower pace , in a friendly environment. And then it’s the Sun ,the beach and the natural beauty of the island. Small enough to go about and discover to your hearts content and big enough to offer a multitude of lifestyles for all ages. Swimming, dozing off by the beach , enjoying water sports, or exploring a nature trail inland.By night going for the taverns, gourmet restaurants, pubs or clubs. The five star hotels and resorts around are an alternative where fitness gyms, health spas, sport facilities and golf are available throughout the year. To top it off snow skiing is an option, two to three months a year.

Climate

Let the sunshine and the warmth in to your heart. You can do whatever you’ve planned knowing that the weather won’t get in your way, 9 out of ten times at least. With sunshine 340 days a year you can enjoy outdoors and your hobbies all year round.

Average temperatures between 16 degrees in January to 32 C in July, warm but mild most of the year, one can enjoy the winter too .

People

Being an island in the cross roads of Europe, Middle East and Africa, throughout the centuries Cyprus and its people have developed a culture of openness and acceptance of overseas cultures and visitors.

One finds himself surrounded by hospitable people that really know how to make you feel welcome. You can adopt your own lifestyle and blend seamlessly with the locals without much effort and rather soon.

Language

You don’t need to learn a second language to get around comfortably. Greek is the native language but English is widely spoken , signage is in both languages making it easy to go around. Bi-lingual menus , announcements & instructions as well as official documents are the norm.

Peace of mind

The crime rate on average is about 1/6 of the E.U. , so you won’t be needing state of the art security systems , theft is not commonplace. You just need to lock up and go , just as if you’d be away for the weekend.

Moreover, the way things are run by the government , the legal system and the banking standards make you feel at ease. Your property and affairs are treated fairly.

Traveling

Travel to Cyprus from the UK takes no more than four and a half hours.

The island is serviced by 30 or so airlines throughout the year. At least two to three scheduled flights per day, more during the high season, reaching Larnaca and Pafos International airports.

Cost of Living

A relatively low cost of living, compared to western European standards, allows you to maintain a lifestyle you could not dream of in the UK.

The standard of living is high, for overseas visitors and locals alike, making it pleasant to be there. Food, clothing, facilities and services are just like the ones you are accustomed to, while a state of the art telecommunications network keeps you in touch with the family, friends, business …. the world.

No hidden costs as far as your property is concerned, knowing exactly how much it will cost you and being a fraction of what one needs to pay in the UK.

Solid Property Ownership

Freehold properties unattached from expiry dates, land rates and passed to your descendants, meaning its your’s for ever .

Based on a solid property law, partly a heritage of our Ex- British colony status, ownership is straight forward, you are actually in control of it from the moment you sign a contract, a copy of which should always be deposited at the land registry.

From that moment on one can sell, or do whatever else he wishes with his property.

Investment Opportunity

Property price in Cyprus is on average a fourth of the value in Western Europe.

This makes it possible for you to own a second home, for holidays or leisure, a more luxurious retirement home, or even a lucrative investment opportunity.

Although so much cheaper it appreciates steadily over the years and especially during the last five, on a rate of 15 to 25% per year depending on location. Accompanied by a strong currency your property’s net worth is growing at a very healthy pace.

With the European Union accession from May 1st this year, a healthy and growing economy, a rising overseas property demand and the right for multiple ownership and rent out by all member state citizens, provide the foundation for a momentum that will keep healthy property price growth for a good many years to come.

Tax Advantage

Individuals that become tax residents of Cyprus pay 5% income tax, while

C.P. 2000 are tax exempt, applying to amounts remitted to Cyprus from pensions or income arising from overseas investments.

Moreover, double taxation treaties signed with a number of countries assures that you won’t be double taxed.( United Kingdom , Ireland , Germany, France to name a few).

Q. Is it safe?
A. Northern Cyprus is extremely safe with minimal crime. People leave their cars and houses unlocked.

Q. Is it easy to buy things? Are they expensive?
A. It is extremely easy to buy things. Larger supermarkets now sell leading British branded products. Although these can be slightly more expensive, Turkish produced items are much cheaper with fresh fruit and vegetables in abundance. Alcohol and tobacco is also extremely cheap.

Eating out is also very good value with a huge number of restaurants and cafes to choose from. An average restaurant bill with drinks is £10-£20 per person.

Q. Are there any foreign exchange controls?
A. No, foreign exchange currency can be brought into the country and taken out through the banks without any restriction or control.

Q. Are there any international banks? What is the banking system like?
A. The banking system is very straight forward and many international banks have branches on the island. HSBC International in particular has opened branches in both Kyrenia and Nicosia. We recommended you use these rather than the numerous local and Turkish banks. Although Turkish Lira is the principle currency, sterling can be used almost everywhere. Travellers cheques can easily be exchanged at any local bank.

Q. What is the government''''''''s attitude to foreign investment?
A. The government is very keen to attract foreign investment in the country and has a number of incentives.

Q. Do I need a visa? How long can I stay?
A. valid passport is required and on arrival you will automatically be given a three month visa. If you decide to stay longer, you could get an extension or alternatively apply for residency. To become a resident is a very simple process. Certain documentation is required which is then stamped enabling you to stay on the island as long as you like unrestricted.

Q. Can I own more than one property?
A. There are restrictions. A foreign national cannot buy more than 1 donum of land which is 1338m square or 14,400ft square. If you are interested in more than one property other members of your family can buy or you can form a local company.

Q. What is the procedure to buy a property?
A. Due to the buoyant market situation, it is advisable to have arranged financing before travel to the island particularly with regards to the reservation fee. You will also need to appoint a solicitor which we can help you with on the island.

There is a certain procedure for buying property:

The validity of the title deed is checked and confirmed by a solicitor. Contracts of sale are drawn up, with the purchaser paying a 10% deposit, and a completion date is set. In many cases, the purchaser returns to the UK or wherever, and the solicitor attends to the completion in the purchaser s absence, having been given Power of Attorney.

If the property is registered in the name of a local person, then an application must be made to the Council of Ministers; allow 4- 6 months.

The Land Registry values the property for Stamp Duty purposes.

On the day of completion, the monies are paid by the solicitor to the vendor and the Land Registry respectively; the name of the purchaser is entered into the Land Registry''''''''s record books, and the new title deed is subsequently issued.

Q. What are the costs involved in buying?
A. The solicitor s costs are in the region of £ 1000 (be aware that some solicitors charge an hourly rate fee, that could work out very expensive) when buying a property in Northern Cyprus.

All purchases are subject to a 6% stamp duty. The amount is accessed by the Land Registry Office.

There is a sales tax (VAT) at 5% on newly built property.

Q. What would the property running costs be - would they be expensive?
A. The cost of living is cheap in Northern Cyprus and utility bills in particular are exceptionally good value. For an average apartment you can expect to pay £200 a year for electricity and water. Communal maintenance fees are also payable depending on what facilities you share (sewage, pool etc)

Q. Are pets allowed in?
A. Pets are welcome in Northern Cyprus so long as you obtain correct documentation from your UK vet. There is a months'''''''' quarantine on the island.

Q. Is it easy to drive and do I need a license?
A. You can drive with your British license for three months, after that you will need a TRNC license. Once you have been issued with your residency permit, a local license can be obtained within days.

Q. Do I need health insurance?
A. There are several insurance companies who provide private health insurance - The British Residents Society are the best people to contact. Local medical care is good and extremely reasonable. The majority of local expats use local doctors surgeries and treatment centres.

Q. Where are the best beaches?
A. North Cyprus has plenty of sandy beaches. The best beaches are in Karpas - the worldwide famous Golden Beach (7 km. long) is here. The Malibu Beach is also another lovely beach of Karpas area.

After Karpas comes the beaches of East Kyrenia - the best of these is the Alagadi Beach (also known as the turtle beach), then Acapulco Beach , Lara Beach and the beautiful Esentepe Beach.

The Escape Beach in Alsançak is one of the safest beaches close to the west of Kyrenia. There are many hotels with private bays which permit non-residents to use them for a small fee - the best one is the Acapulco Beach .

Q. Where is the London Representative Office?
A. Office of the London Representative, Turkish Republic of Northern Cyprus, 29 Bedford Square, London WC1B 3EG, United Kingdom.
Tel: (00 44) 171-631 19 20 (3 Line) 171-631 19 30 (2 Line)
Tourism Fax: (00 44) 171-631 19 48 / 171-631 18 73
E-mail: webmaster@trnclondon.demon.co.uk

Q. What is the climate like?
A. Cyprus enjoys an intense Mediterranean climate, with long dry summers from mid-May to mid-October and with mild winters from December to February, which are separated by short autumn and spring seasons. Summer is the season of high temperatures with cloudless skies, but the sea breezes create a pleasant atmosphere in the coastal areas. Winters are mild with some rain, but even in January (usually the coolest month) there are generally six hours of bright sunshine during the day. During the summer months very light clothing is all that you will need. In spring and autumn daytime temperatures are generally warm enough for light summer clothing, but in the evening one might feel the need for a light jacket or pullover. In winter, you should be prepared for all kinds of weather that a European spring may bring. It is advisable to pack a light jacket and pullovers, although you may not need them during the day.

Q. Can I take advantage of duty-free?
A. Each adult is permitted to bring 400 cigarettes, 500gr tobacco or 50 cigars, 1 litre of wine or spirits and up to 100cl of perfume into the country. Duty-free is available on arrival in Northern Cyprus at airport shops and the ports of Kyrenia and Famagusta. It is significantly cheaper than buying on the airplane or in U.K. duty-free outlets.

Q. What about electricity?
A. Electricity is the same as in the U.K. (240 volts) and wall fittings are generally the U.K. three-pin type, so all your U.K. electrical items will function as they should.

Q. What are the Emergency Services phone numbers?
A. Here is a list of emergency services and their contact numbers:
First Aid / Ambulance Tel: 112
Forest Fires Tel: 177
Police Nicosia Tel: 228 3311
Police Kyrenia Tel: 815 2014
Police Famagusta Tel: 366 5310
Police Guzelyurt Tel: 714 2140
Police Karpaz Tel: 381 2325

Q. What if I need medical advice or a hospital?
A. The main hospital is in Nicosia and there are other smaller ones in Kyrenia, Famagusta, Guzelyurt and Lefke. There are also clinics in smaller towns and some villages. Private medical care is widely available and much cheaper than the U.K., with many doctors trained in the Britain and other Western European Countries.

Q. What if I need a plumber?
A. Due to a narrow pipe and sceptic tank system in Cypriot plumbing, many sewerage systems cannot cope with toilet paper being flushed, as it may cause blockages. You will find a bin provided next to the toilet, provided for the disposal of toilet paper, which is emptied daily.
Population The population of the Turkish Republic of Northern Cyprus was recorded as being 183,220 in the last census in 1996. 50% of the population live in the cities and 50% in the country side, 99% of the adult population are literate.

Q. What''''''''s the postal service like?
The postal service in Northern Cyprus is reasonably fast and efficient. Please remember that to receive mail from abroad letters must be addressed "Mersin 10-Turkey"

Q. How do I make calls to and from Northern Cyprus?
A. The dialling code for England is 00 44 followed by the local number but omitting the first number (0). The dialling code from abroad is the same as that for Turkey (00 90). To call a Cypriot number dial 0090 392 followed by the local number. Public telephone booths are available, telephone cards can be purchased from the Telecommunications Office and local mobile “pay as you go” services are available through Turk Cell and Telsim.

Average Flight cost:

Flight prices range from £150-270 depending on airline and time of the year.

Airport(s):

Larnaca, South East Coast of Cyprus & Paphos, at South West Coast of Cyprus

Hotel Cost & are you getting any deals from hotels?

Special rates are available for inspection trip.

Surveyor charges:

It is mandatory – CYP100

Solicitors fees:

CYP800 – CYP1000

One of our partner do have a free legal department so there are no hidden costs in some of our developments.

Stamp duty:

Up to £50,000          - 3%

£50,000 - £100,000 - 5%

£100,000 & above   - 8%

Number of client’s expected visit before completing:

N/A

Expected return on property(ies):

15%

Expected market growth:

15%

Buy-To-Let: Expected rental income & Letting agencies fees:

6-9% rental return and 20% of that amount is letting fee (for holiday letting).

Closing/Selling costs:

Same as above & See FAQ: Buying a property in Cyprus.

Solicitors fees:

Government taxes:

Capital Gain Taxes:

20% on the gain, however, the first CY£10.000 of gain are tax-exempt.

If a couple jointly owns the property, CY£20.000 of gain are tax-exempt.

When you sell for the first time your private residence of which you were the owner for at least 5 years, then it is  tax-exempt up to CY£50.000.