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.

Foreigners interest in buying property in Croatia is not something new. Before the war in the nineties many tourists showed interest in buying property in Croatia. At that time, they were not allowed. With the Croatian independency from Yugoslavia the thing changed and particularly, from 2000 the market started to emerge.

Germans and Austrians, who have a long history of tourism and commerce in Croatia were the first ones to buy property. British interests started around the end of 2002. Italians for example cannot buy property in Croatia because of reciprocity.

Reciprocity works in the following way: if a Croatian national does not have any restrictions to buy property in an x country then the nationals of that country will have no problem in purchasing property in Croatia. Great Britain, Ireland, Australia, USA, and many other Europeans countries have reciprocity with Croatia.

The advance in developing became quite notorious by 2001. Nevertheless, the Croatian authorities saw what was done with Southern Spain and immediate legislation was implemented to protect the landscape and especially the coast. We do not have to forget that tourism plays a major part in Croatia s economy, with 46.4% of the workforce involved in the service sector.

The building standards in Croatia are really good indeed. Most of the builders, now developers, previously worked in Germany, when times in Croatia were harder. The quality is spot a first sight by many people who look for property in Croatia and helps them to decide for this country, where development is limited and there is good quality for value.

A good investment

Croatia is undoubtedly a good place to invest in property. Prices are rising steadily and rises of 20 per cent per annum aren t unreasonable along most resorts of the coast.

Croatia s EU ascension is playing a big role in the Croatian property market as it is expected to boom the prices much more. World financial institutions are predicting an increase in Croatian real estate value of 200 per cent - 300 per cent in next few years.

Also, as the Croatian government started to restrict further developing alongside the coast in order to protect the environment and the place not to become a concrete jungle as other holiday destinations, the properties already built and the plots of land that already got the planning permission are much better valuated.

Moreover, property in Croatia is still much cheaper in comparison to other property hot spots in the Mediterranean, like Spain for example. If there is a time to make a move in the Croatian property market it seems to be now as there is a big number of foreign that have bought property lately.

Property prices now are quite different depending on the area of Croatia you decide to buy. Dubrovnik, which has received a lot of good press in the last years, is already very expensive place to buy property. The square meter of property has reached €6,000 (£4,000). In Southern Istria, towns like Pula, Medulin, Premantura and Pjescana Uvala prices are still much more affordable. An apartment with Sea view in those areas could be valued at €2,000 (£1,400) per square meter in the most expensive of the cases.

What to buy

The most popular investments seem to be stone houses and one and two-bedroom apartments. Buying an apartment permits the buyer rapid returns if they decide to let it. In general, good-quality apartments in tourist areas are usually easy to rent out and can provide useful income on top of the capital growth.

Old stone houses require usually renovation and more paperwork to allow that renovation being implemented. The good point with this kind of property is the big potential they have for those looking for agro-tourism. An incredible amount of Europeans are looking anxiously for a very quite place to stay but at the same time it has to be half and hour drive to the Sea, beaches and the exciting night life. Only recently, for example, an article in The Sunday Times highlighted the shortage of villas that are available for rent in Istria when compared to the huge demand in the area, and it s this demand that is attracting more and more people to Croatia.

The inland Istria also known as green Istria is the right place in Croatia for those ones. Istria is easily accessed by car from Italy, German, Austria and Hungary, to name a few nationalities that spend their holiday there and by cheap air fares from Ryanair and easyjet to adjacent airports for those coming from the Britain and Ireland.

So, to conclude, if you plan to obtain income from your property in Istria, Croatia, regardless the type, bear in mind that the chances are very positive providing that you do it yourself or by getting a local letting agency to manage your property; who s writing have spent many years in Croatia and seen car plates from over the whole central and eastern Europe coming and staying in Istria. Istria is their nearest access to the Mediterranean and therefore to their holiday.

Croatian Economy

The country is economically sound and EU accession is set for 2008.The economy is a mixed one, with 30 per cent attributable to industry, 7.9 per cent to agriculture and 62.1 per cent to services, including tourism. The growth in GDP is 4.3 per cent per annum. The currency, the kuna, was formerly pegged to the deutschmark and now shadows the euro. It has been stable for several years.

Before the dissolution of Yugoslavia, Croatia, after Slovenia, was the most prosperous and industrialized area, with a per capita output perhaps one-third above the Yugoslav average. The economy emerged from its mild recession in 2000 with tourism the main factor, but high unemployment remains a key negative element.

Now, Croatia is on track to join the European Union and its foreign and economic policies are all tailored to achieving this as smoothly as possible. Many people, Croatians and foreigners, are investing in property here now, fully expecting the same rises in property values that were seen in other EU candidate states immediately prior to their accession.

Property prices in many of the new EU members country have seen considerable rises, the forecast is that for Croatia, that rise would be at a very high rate. After that, Croatia will be a new "European" rival of Spain, Italy, Portugal and Greece in the Mediterranean coast.

Accession to the EU in 2008 means that the outlook for the property market is very bright. However, the government has a heavy backlog of civil cases involving tenure land that must be dealt with.

Property Management & Letting

Once in Croatia we can recommend you local agencies to manage and/or rent your property. We understand how important some issues are such as:

-         Project Management

-         Changeover Cleaning

-         Key Holding

-         Contract Monitoring

-         Bookings Control.

We would be happy to discuss your needs and give you our best advice.

Do not forget that if you have bought your property to let you will have good chances of making profit of it, many central and eastern Europeans are coming and staying in Istria every year. Istria is their nearest access to the Mediterranean and therefore to their holiday.

Also British and Irish, thanks to budget flights, are increasing in number during the season. The season in Istria commences in April and ends in October with the summer months seeing the most visitors.

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).

If you travel to Croatia because you have an interest in buying property it''''''''''''''''s a good idea to open a foreign currency account as soon as possible. It''''''''''''''''s quite simple, entailing only production of a passport and a nominal sum.

Blenham Investments’ team can advise you which banks are available and perhaps take you directly there. Opening a foreign currency account is important as in Croatia it''''''''''''''''s essential to have the funds available for handing over the same day. In that aspect, Croatian''''''''''''''''s process of buying property differs from UK''''''''''''''''s where funds can arrive after the contract is signed.

If you decide to purchase a property you will need a proof of citizenship: your passport has then to be notarised in Croatia. Your agent should present you with a local notary, the notary will attests to your identity (it costs about £4).

Blenham Investments recommends that intending buyers do this immediately, while they have plenty of time to slot it in, rather than leaving it to the last minute. If you choose our agency, the Croatia Properties team will help you in locating the notary and obtain the required documentation. If buyers leave this too late and find there are no working days before they return to the UK, they wind up having to do it in the UK and since UK notaries are not known to the Croatian authorities, it is necessary to get the UK Foreign Office to validate the notarization, wasting your time and money.

Costs & Taxes 

When calculating your budget for buying a property in Croatia you take some points into consideration. Starting by agents, many charge to show you around properties. Whereas this is intended to enable them to focus on genuine buyers, rather than simply holidaymakers, Blenham Investments does not charge for showing you around! Our only fee is our commission if you decide to buy a property trough us.

Blenham Investments has a fixed price policy of 3% + VAT commission charge to the purchaser. This figure is added to the purchase price and is paid at the moment the deposit is given for the chosen property.

Our agency in Croatia is entitled to arrange all the legal documentation for you and prepared to guide you through the process of the Ministry of Foreign Affairs and Land Registry. If you do not prefer this route you can always contract a lawyer to act on your behalf, legal fees for a lawyer for the same service will cost you around 1.5% of the purchase price.

The property transfer tax in Croatia is currently 5%. If you buy newly-built property like off plan apartments, this 5% will be levied just on the cost of the land. If the property is older, the 5% will be on the entire property value.

Please also note that property transfer tax has to be paid once you receive the approval from the Ministry of Foreign Affairs which takes between 12 and 18 months from the moment your agent/ lawyer sent the documentation.

The Pre-contract 

The next point to consider is whether you are in a position to pay just a deposit or the whole amount. Many people buy property in Croatia with a mixture of savings and a loan against equity in a UK property.

Frequently, they will transfer their deposit into their local bank account from savings and arrange to come out a few days later to sign a pre-contract. The balance then follows in two to three weeks once they can get it out of their lender, at which time the vendor signs the full contract. Without a previously established bank account, another trip would be necessary. This is why setting it up, even before selecting a property, pays off.

Paying a reservation deposit guarantees that the property you have chosen is taken off the market and is reserved for you at the agreed fixed price.

The pre-contract acts as a receipt for the money and ties it closely to the property. It will specify when the balance is to be paid and this date should be carefully considered and agreed with the vendor. You should allow enough time for withdrawing money from any deposit account it may be held in, or allow a margin of error from a lender''''''''''''''''s assurances of when a UK loan might be available.

In the undesired case you fail to complete on the agreed date the vendor has the right to retain the deposit. In case the vendor withdraws, he has to pay you double the deposit.

The Contract 

On the assigned day of completion, the buyer and seller (or their authorized representatives) will be presented at the office of the Notary (Javni Biljeznik) to sign the title deed (Ugovor or Kupoprodaji Nekretnine).

The Croatian Notary does not check any terms when buying property in Croatia, but certifies that both parties have agreed to the terms stated, (the Notary is in place to witness both parties'''''''''''''''' signatures). At that stage your agent will prepare a copy of your contract and all other (see below the list of documents needed) necessary documents to be sent to the Ministry of Foreign Affairs of Croatia.

When acquiring a property in Croatia, foreign citizens need to obtain the approval of the Ministry of Foreign Affairs of the Republic of Croatia. This is a formality that requires 12 to 18 months to complete. Applications are not refused unless the individual has an adverse history with relation to Croatia.

In Croatia the ultimate proof of ownership is entry of the owners name in the local Land Registry (Zemljisne Knjige) on that specific property. The local courts will not allow a foreign citizen to be entered in the Land Registry without the MFA approval. Here is a list of the documents, which have to be supplied to the MFA when requesting an approval to purchase property in Croatia:

The sales contract;

An excerpt from the land registry for the particular property (In Croatian ZK izvadak). This document is usually obtained in each municipality (Opcina) at the local municipal court (Opcinski Sud); it''''''''''''''''s land registry division (Gruntovni Odjel);

A document from the local municipality (Opcina), from the following department: "Ured za prostorno planiranje". The document is called "Uvjerenje o namjeni", for the particular property;

Proof of citizenship for both buyer and seller (photocopy of passport); any photocopies have to be notarised by a Croatian Notary Public

When buying property in Croatia, a clause in the contract safeguards your finances, protects your rights and allows you to take advantage of your property with immediate effect while you wait for the paperwork. Once the approval arrives from the Ministry of Foreign Affairs of Croatia your agent will fax it to the local Land Registry and confirm you as a new owner, then the final step is to pay the tax for your new property in the Taxation Office.

Setting a Company 

Blenham Investments’ Croatian Agency works in partnership with local lawyers who are experienced in establishing limited private entity''''''''''''''''s for individuals wishing to purchase property in Croatia via this route but we also advise whether this is the convenient route for you and your circumstances. This could be that you need to get the property registered in the Land Registry more quickly or that you need a quick registration in order to apply for planning permission.

By setting a company in Croatia for buying property you can also claim the VAT back but if you also establish a company, you will have a liability to make regular returns.

You will need to contract an account in order to make those returns, which will cost a modest amount each time. The risk you run by no making the returns is of the company being closed with consequences for its assets like your property. Forming a company does not automatically register you for PDV (VAT) .You would need to register with the tax authorities for it and you will incur a liability for submitting regular returns. If you put yourself in the PDV regime, you''''''''''''''''ll be liable to charge PDV on all sales. This could have implications when you want to sell your property.

A Croatian lawyer will have to check that your choice of name is acceptable. Once the name is agreed, it will need to be registered with the Trade Court appropriate to the area you will operate in. The time for this varies from a few days to six weeks, depending on the court.

Your lawyer will also have to register your company with the tax office and get a statistical number and this is usually achieved with specific powers of attorney to save you from regularly having to go to Croatia. There is a minimum share capital of the equivalent of 20,000 kunas (about £1,800), although this can be recycled into your purchase.

Mortgage in Croatia 

At the present time, mortgages are not available to foreigners in Croatia secured on property in the country.

Local banks are unwilling to lend to owners whose income is outside the country and who could be difficult to pursue in default.

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:

Budget flights to Trieste or Croatia with average cost of 60,00 Euros return. Airlines to Pula with a average cost of 400,00 Euros return

Airport(s):

Pula Airport.

Hotel Cost & are you getting any deals from hotels?

N/A.

Surveyor charges:

150,00 Euros.

Solicitors fees:

Average of 500,00 Euros.

Government taxes:

None, only once it s purchased.

Number of client’s expected visit before completing:

One year.

Expected return on property(ies):

20-25% per year.

Expected market growth:

20-25% per year.

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

Return on a Croatian property is 6-8% per year. Agencies fees are 15%.

Other comments:

Closing/Selling costs: 

Solicitors fees:

1.5% of the purchased price.

Government taxes:

5%.

Capital Gain Taxes:

35%.

Other comments: N/A.

Land and property prices have risen in the last two years and demand for property is on the increase. Turkey are currently preparing new laws and regulations in order to join the European Union. When this happens, prices will rise even more. 

Turkish tourism is growing, not surprising when you realise what Turkey has to offer:

            - Breathtaking scenery

            - Glorious sandy beaches with shallow waters

            - Hidden coves

            - English is widely spoken by friendly residents

            - Glorious weather

How to purchase

At Blenham Investments we will guide you through the process of purchasing your home in Turkey. We have a professional team at your service, including an English speaking Lawyer and Interpreter. This will enable you to follow and understand the legal process of buying your own property.

When you buy a property in Turkey you should only buy through a licensed Estate Agency.

It is in your interest to ensure a lawyer oversees the purchase of your property and at Blenham Investments we only operate in conjunction with a lawyer.

When you have found the property of your dreams this is the procedure we will follow:

            - You will meet with the property owner and solicitor where a price for the house will be agreed by both parties.

            - An agreement contract will be prepared which will be translated by our interpreter for you.

            - You will keep a copy of the contract and put down a deposit, the property owner will sign a bankers draft.

            - Overseas buyers need permission from the Aegean Army and this can take up to two months to complete. This search is about the property not the buyer. 

            - The solicitor follows the house purchase and, when complete, we will contact you in order to sign the title deeds (the solicitor can sign on your behalf if you cannot be in Turkey yourself).

All procedures are overseen by us and we will keep you up to date with every step.

Why buy in Turkey?

Property prices are still relatively low, but will increase once Turkey joins the European Union. This makes buying a Turkish property a sound investment.

You can buy so much more for your money than you could in Europe. The market therefore is open to everyone.

It is the perfect place for a home. Areas like Altinkum have 8 months guaranteed sunshine and mild winter days and lovely sandy beaches.

The cost of living is very low in Turkey compared to Europe.

Average Flight cost

During the Summer season (May - October) approx. £120 per person

Airport(s)

Bodrum airport - approx. 1 hour 15 minute drive to Altinkum

Izmir airport - approx. 1 hour 30/45 minute drive to Altinkum

Hotel Cost & are you getting any deals from hotels?

If clients are coming over for a property inspection trip we will carry out a return airport transfer from the airport (free of charge) to their accommodation.  The accommodation we provide will consist of 2 bedrooms, 1 bathroom, lounge and kitchen.  The apartment cost will be £120 for a week (for up to 5 people).  If they purchase a property through us we will refund the accommodation cost.

Solicitors fees:

Approx. £150 - £200

Government taxes:

For a property between £40k- £50k it would be approx £1,400. This covers Solicitor, Translator, Stamp Duty, Water and Electric registration, Council documentation, Area Map fee (Aegean Army land check) and Property Registration etc.

Number of client’s expected visit before completing:

Maximum 1 visit

Expected return on property(ies):

N/A

Expected market growth:

Over the last 3 years it has been approx. 25%

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

Clients manage the rentals of their own properties. 

Closing/Selling costs: 

Solicitors fees:

Approx. £150 - £200

Government taxes:

Council tax for a 2 bedroom apartment approx. £100 per year.

Capital Gain Taxes:

If the client only has 1 property and sells, there is no cost

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.

The current housing market in the UK is extremely strong and many home owners are finding that they have a large amount of equity in their property, and are choosing to invest it in one of the most comfortable and profitable regions of Europe - southern Spain.

So, why not make the most of your equity and invest in a property in Spain ? New developments in Spain are being constructed constantly, the reason being that they sell quickly (in most cases through off-plan investment schemes). You can purchase them for 75% of the market value and then find that their value has gone up by 20% in the first year. If you are not planning to live in them all year round, you are unlikely to have a problem renting them out.

There is so much property in Spain, so choosing your dream Spanish property can be a very daunting task. With such a reliable climate, affordable housing, health care, leisure, cultural activities and airports, it is no wonder that Spain has become so popular for buying a property.

Property development in Spain has also become extremely competitive due to the increase in demand for off-plan investment. Off-plan investment in Spain is generally a surefire way of optimising returns on investment in Spanish property. The Costa del Sol and Costa Blanca have a lot to offer on this kind of investment.

To make purchasing a property in Spain easier, it is always useful to decide before you start, in what area you want to look, and within that area, which part you would most like to make a property purchase i.e. you may like the idea of buying a property in Marbella and particularly like the Golden Mile as an area within the town. It is always useful to look at different types of properties in different areas so that you can get a really good idea of what you can get for your money. Once you have done this, your judgement will be a lot more insightful when making an offer.

There are many reputable estate agents in Spain, and of course, there are a lot of sharks as well! Recommendations are always useful when making the decision as to which real estate agency to approach, especially when the recommendation has come from a resident or a lawyer.

A good real estate agency in Spain should have a wide portfolio of resale and new developments, and show interest in what the customer wants instead of the customer having to choose what the agency has on their books. A commendable agent will have good market knowledge on many areas and property types and will match your requirements to the best of their ability. And once you have made your Spanish property purchase, the service should not stop there as they should stretch to help you settle into your new home by informing you of local services and amenities, as well as advising you where to go for specific furnishing requirements.

1. An established estate agent with experience of the market.

2. A lawyer who is familiar with Spanish law.

Over the last few years more people have been attracted to making the move and moving to the coast either as a permanent resident, a residential tourist or to work.

What investment options are available?

There are 3 standard off-plan investment routes followed by our clients according to which type of return they are looking for:

          - Short-term/quick return

          - Medium-term/longer-term investment

          - Buy-to-let (maximum rental return)

However, it is important to stress that having committed to one route; it is not set in stone and can be changed at any stage of the process. (i.e. a short-term investor could decide to hold on to the property and turn it into a buy-to-let and vice versa).

We recommend that you take advice regarding tax implications from a professional tax/financial consultant.

Estate Agents

Once you have decided to make a purchase the first step is to choose an estate agent who has knowledge of the appropriate property market in Spain and experience within the area of your choice.

When the property is established (i.e. second home, investment property or permanent home), the agent will be able to guide you to the correct choice for your budget, quality, area and purpose.

An experienced and professional estate agency in Spain will match you with an agent who has expert knowledge of your chosen areas, speaks the same language and who is able to recommend tried and tested supplementary services, such as lawyers, financial advice and currency exchange.

An experienced estate agent will also be able to supply you with details of the extra costs involved of purchasing property in Spain. It is expected that taxes and charges will be liable, however, they may be different from your current local and national taxes and it important to be aware of the projected annual costs, such as; Community Fees, Property Income and Wealth Tax, Annual Real Estate Tax (IBI) and utility bills etc. It is advisable to seek legal advice to ensure that all of the charges are apparent.

Legal Advice

Choosing the right lawyer is essential in order avoid any unnecessary problems and is your guarantee that the correct Spanish legal procedure is adhered to. If you do not have your own lawyer, there are many excellent English speaking lawyers in Spain, who will be able to assist you and protect your interests throughout every step of the buying process.

The lawyer will make sure that the property is registered in the vendor s name; it is free from charges, debts or other liabilities (as any debt on the property will be passed on to the new owner).

Although, your estate agent is instrumental in organizing the fine details of your property purchase, it is your lawyer who will liaise with the vendor to negotiate the completion date, form of payment etc. and will ensure that the timetable of events is adhered to.

After you have put down your initial reservation fee, this is the stage that your lawyer will take over the procedure. The lawyers will draw up a private purchase contract and it is customary to pay a 10 per cent deposit on the total cost of the property which is non refundable if the purchaser decides against the transaction. However, should the vendor fail to fulfil their obligations, the deposit is refundable and the contract will be void and damages could be liable. Before the exchange of contracts, the lawyer will complete the necessary searches on the property.

On the completion date the lawyer will go to the Notary Public and sign the deed and pay the final payment of the purchase price. At this stage the property will belong to the purchaser and the keys will be handed over, completing the transaction.

The Notary Public will forward details of the title deed to the land registry to inform them of the new owner and to prevent the property being sold twice and at this stage taxes will be payable.

Taxes Payable

          - Re-sale properties - transfer tax (ITP) at 7%

          - New properties - VAT (IVA) at 7% and stamp duty of 1% (VAT (or IVA in Spain) increases to 16% if purchasing plots of land, commercial premises or garage spaces).

          - Plusvalía - tax levied by local the town hall is based on:

                      Area where the property is located

                      Surface area of the land

                      Date of the previous title deed

          - Lawyers fees - between 1 % & 2% of the purchase price plus VAT (IVA) at 16%.

Fees Payable

          - Notary Public - charges calculated on a fixed scale ranging from:

                      €340 for a property price of € 120.202

                      €601 for a property price of € 601.012

          - Land Registry - approximately 40% of notary charges

Tax Issues When Investing In Spain

There is a 7% tax on resale and new properties. For staged payments on a project build, the tax is paid on each staged payment.

Liability to Yearly Taxes due to the Ownership of Real Estate in Spain

As a non-resident owner of property in Spain, you are liable for Spanish taxes. Taxes are classed as either Municipal or State.

Municipal Taxes include:

Tax for the collection of rubbish (Recogida Domiciliaria de Basura). This is often included in your Community Fees

Municipal taxes are paid annually to the Town Hall. These vary depending on the area in which you purchase your property.

Each Town Hall has its own period for voluntary payment, favouring prompt payers with certain discounts

State Taxes include:

Wealth Tax - This is paid annually on the 31st of December and is calculated by percentage value of the property.

Property value is taken as the highest of the following:

          Purchase Price

          Cadastral Value

          Value checked by the taxation authorities.

Income Tax for Residents

This is calculated according to two criteria:

          - If the property is used only by its owner

          - If the property is rented to a third party

In the first case, the income on which the tax is applied is a legal income and is presumed to have been yielded to the benefit to the owner of the property. This is calculated at 2% of the cadastral value of the property. The tax paid is 25% of this amount.

Property Types in Spain

Apartment - all on one floor in a building with at least 3 floors

Townhouse - terraced house with at least 2 floors (does not have to be in the town)

Chalet - detached or semi-detached property

Villa - detached or semi-detached property, generally in own grounds with own swimming pool

Duplex - apartment spanning 2 floors in a building of at least 3 storeys

Penthouse - apartment or duplex on the top floor of an apartment building

What is a Gestor and do I need one?

A Gestor is specifically a Spanish phenomenon and is essentially an agent (fiscal representative) who will deal with all the necessary bureaucracy associated with living in Spain for a reasonable fee. The Gestor is not a lawyer, but has knowledge of the procedures, taxes and fees payable and can save you the time and frustration of dealing with potentially complicated systems, and just as importantly, ensuring that no fines are incurred for non-payment of taxes that you were not aware of.

What is a Spanish Notary Public?

Although the Spanish Notary Public (notario) is a lawyer, their job is strictly to witness the signing of the title deeds and to ensure that all liable taxes are paid on the completion of the transaction. Any legal advice required by the vendor or purchaser must be obtained from a separate lawyer.

Notaries are paid both the vendor and purchaser. They are charged on a sliding scale set by the Spanish government, which vary depending on the property price and the amount of work in preparing the documents.

Prior to preparing the deed of sale (escritura), the notario makes sure the property and price are correct and will also advise of any taxes, which are due on the property.

When the deed of sale is signed both parties should be present and if not, a nominated power of attorney (Poder Especial) to represent them and will be witnessed by the Notario (of course this will incur and additional cost of 40€ to 100€!).

Having signed the deed of sale and the purchase price has been handed to the vendor, the proof of payment is noted in the Escritura which is then registered with the local property register. Non-residents will need to relinquish 5% of the purchase price to be paid as Capital Gains Tax.

Having purchased your property you will be liable for the following basic expenses:

          - Community fees. Charged for the upkeep of the community grounds, communal areas, facilities and security should this be a service on your           particular urbanization.

          - Rates

          - Rubbish collection

          - Income

          - Wealth Tax. Approximately, 1.5% of the purchase price per year.

          - Water

          - Electricity (Spanish homes do not have piped gas and if required is purchased in bottles)

          - Insurance

How do I arrange to retire in Spain?

Retiring to an EEC country does not necessarily have to be a daunting prospect and the way to avoid any of the common pitfalls is thorough research BEFORE you go. The most important step is to find out the legalities and your financial feasibility of settling in a foreign country (even in Europe).

Useful Addresses for Over 50s Retiring to Spain

Age Concern Information Line

Freepost (SWB 30375),

Ashburton,

Devon TQ13 7ZZ.

Tel: 0800 00 99 66

Fax: 020 8765 7211

Web: www.ageconcern.org.uk

The Association of Retired and Persons Over 50 (ARP/O50)

Greencoat House,

Francis St,

London SW1P 1DZ.

Tel: 020 7828 0500

Fax: 020 7233 7132

E-mail: info@arp.org.uk

Web: www.arp.org.uk

Inland Revenue

International Branch,

Benton Park View,

Newcastle-upon-Tyne NE98 1BA.

Tel: 0845 9154811/ Overseas: 00 44 (0) 191 225 4811/ Fax. 0845 9153232

Overseas:00 44 (0)191 225 3232

Web: www.inlandrevenue.gov.uk/international/index.php

For details of UK Income Tax whilst abroad contact:

Inland Revenue

Centre for Non Residents

St John s House

Merton Rd, Bootle,

Merseyside L69 9BB.

Financial Intermediaries and Claims Office:

Tel: UK 0845 0700040

Abroad +00 44 (0)151 210 2222

National insurance contributions

Inland Revenue,

National Insurance Contributions Office,

International Services,

Longbenton,

Newcastle upon Tyne, NE98 1ZZ.

International Services Helpline:

Tel: UK 084591 54811 / Abroad +00 44 (0)191 225 4811

Fax: UK 084591 50067 / Abroad +00 44 (0)191 225 0067

Email: internationalservices.ir.sbg@ir.gsi.gov.uk

Retirement Pension Forecasting and Advice Unit (RPFA)

Department for Work and Pensions,

Newcastle-upon-Tyne, NE98 1BA.

Tel: +00 44 (0) 191 218 7585

Fax: +00 44 (0) 191 218 7293

Web: www.dwp.gov.uk/lifeevent/penret/index.php

Do I need to apply for residency ?

When moving to another country it is important to make sure that all paper work is in order and that you have researched all aspects of living overseas including financial, social and cultural. Here is a brief checklist of points to consider before becoming a resident (ex-patriot) in another country.

          - If you intend to have any financial dealings, apply for an NIE (foreigner s identification and social security number) at the police station. This is will be     needed to set up a bank account and also when you start a job.

          -  Set up a current account in plenty of time. The bank will issue cards with your account details on, which you can present to your employer and other official bodies.

          - Arrange adequate insurance

Greece is located at the Southern and of the Balkan Peninsula in South Eastern Europe. Mainland Greece is surrounded by no less than 1400 islands of which just 169 are inhabited. The land is blessed with temperate climate, sunshine and the beautiful blue sky of the Mediterranean. Greece has mild winters and hot dry summers. Maximum temperatures on the islands are usually around 30 C but are tempered by a northerly breeze.

Transportation

There is a good public transport system in Greece, with a choice of buses, subways, taxis, airplanes and boats.

Boat

Greece's coastal shipping network is extensive, providing quick and easy access to all the islands.

Airplane

Most cities and islands in Greece are accessible by airplane. Train The Hellenic Railway Organization covers a large part of continental Greece.

Language

Greek is the local language. The Greek language is probably the oldest in Europe with an oral tradition going back some 4000 years. English is spoken practically everywhere. Most people will be very willing and try to help you. That is Greek hospitality.

Residential Status

For citizens of member states of the EU there are no restrictions on living and working permanently in Greece.

Financial Incentives

Apart from a superb climate, the friendliness of the local people, the rich variety of landscape, an abundance of culinary delights, the sea, the idyllic islands and a lifestyle you have dreamed of achieving, there are actually several very sound financial incentives in purchasing property in Greece and property prices are very reasonable compared with other EU countries. Leptos will arrange long-term finance at competitive rates and the cost of living is low whilst the standard of living is high.

Utilities

The charges for electricity and water in Greece are low and are billed bi-monthly. For electricity, local taxes and television license, one should expect to pay around 50 Euros per month.

Cost of Living

Generally the cost of living is low. As a guide, current living expenses are shopping, food, petrol, coffee and evening drinks etc., for a single person it could be around 400-500 Euros per month.

Local Bills

These accounts, such as electricity, water, telephone, insurances etc. need to be paid reasonably promptly. If you are not a permanent resident Leptos may attend to these matters, on your behalf.

Medical Facilities

The standard of medical care in Greece is very good with experts in every discipline.

Registry of Mortgages

In Greece there is no Land of Registry yet but there are plans for one in the future. The difference between the Land Registry and the Registry of Mortgages is that in the Land Registry the owner holds an uncontested title which means that he is secured by the State. At the Registry of Mortgages the title is secured by the contract held by the owner.

Notary Public

Contracts are signed at the Notary Public. The Notary is a state official and makes sure that both of the parties understand the procedure and verifies and registers the transaction in the public records.

Greece is located at the Southern and of the Balkan Peninsula in South Eastern Europe. Mainland Greece is surrounded by no less than 1400 islands of which just 169 are inhabited. The land is blessed with temperate climate, sunshine and the beautiful blue sky of the Mediterranean. Greece has mild winters and hot dry summers. Maximum temperatures on the islands are usually around 30 C but are tempered by a northerly breeze.

Transportation

There is a good public transport system in Greece, with a choice of buses, subways, taxis, airplanes and boats.

Boat

Greece s coastal shipping network is extensive, providing quick and easy access to all the islands.

Airplane

Most cities and islands in Greece are accessible by airplane. Train The Hellenic Railway Organization covers a large part of continental Greece.

Language

Greek is the local language. The Greek language is probably the oldest in Europe with an oral tradition going back some 4000 years. English is spoken practically everywhere. Most people will be very willing and try to help you. That is Greek hospitality.

Residential Status

For citizens of member states of the EU there are no restrictions on living and working permanently in Greece.

Financial Incentives

Apart from a superb climate, the friendliness of the local people, the rich variety of landscape, an abundance of culinary delights, the sea, the idyllic islands and a lifestyle you have dreamed of achieving, there are actually several very sound financial incentives in purchasing property in Greece and property prices are very reasonable compared with other EU countries. Leptos will arrange long-term finance at competitive rates and the cost of living is low whilst the standard of living is high.

Utilities

The charges for electricity and water in Greece are low and are billed bi-monthly. For electricity, local taxes and television license, one should expect to pay around 50 Euros per month.

Cost of Living

Generally the cost of living is low. As a guide, current living expenses are shopping, food, petrol, coffee and evening drinks etc., for a single person it could be around 400-500 Euros per month.

Local Bills

These accounts, such as electricity, water, telephone, insurances etc. need to be paid reasonably promptly. If you are not a permanent resident Leptos may attend to these matters, on your behalf.

Medical Facilities

The standard of medical care in Greece is very good with experts in every discipline.

Registry of Mortgages

In Greece there is no Land of Registry yet but there are plans for one in the future. The difference between the Land Registry and the Registry of Mortgages is that in the Land Registry the owner holds an uncontested title which means that he is secured by the State. At the Registry of Mortgages the title is secured by the contract held by the owner.

Notary Public

Contracts are signed at the Notary Public. The Notary is a state official and makes sure that both of the parties understand the procedure and verifies and registers the transaction in the public records.

And prices still have a considerable way to go before they catch up with fellow European countries. The table above maps out the relationship between property prices and income per person in a number of major European cities. Theoretically the richer on average each person is in each city the higher you would expect property prices to be. With Budapest in the bottom left hand corner of the table it shows that both property prices and income per person is set for many years of growth.

Financial Stability

Politically and economically, Hungary is light years away from its former Communist doctrines. It is a stable and transparent system that moves in line with EU policy. The government is committed to a cost efficient smaller state, and for credibility, predictability and transparency, which are all vital signs of stability for investors.

A whole host of Western heavyweight companies have all given Hungary the thumbs up and set up business there, including General Electric, Coca-Cola, Citibank, Ernst and Young, Nokia, Eriksson, and IBM. Many of these companies have been firmly established there since the 1970s.

Budapest has become one of Central Europe’s most popular cities, offering an ideal mix of culture, history and great business opportunities. With its architectural beauty and financial growth, it has become a superb location for investors. On average, the rise in apartment prices over the past year and a half in Budapest has been 19%, according to a study carried out by Ecostat Institute of IT and Economic Analysis.1 And based on the estimated inflation rates for 2005 and the steady growth in property prices over the past few years, local predictions expect the market to rise a further 3% by the end of April this year.

Investors have the option to buy as individuals or via a limited company vehicle.

Buying as an Individual:

            - Best when buying 1 or 2 apartments.

            - Requires basic licence (£200).

            - Solicitor’s fee (£615).

            - Stamp Duty: 6% on amount above £40,000.

Buying through a Company:

            - Best when buying a portfolio of 3 or more apartments.

            - Limited Company (Kft) set up cost (£340).

            - Basic licence (£200).

            - Solicitors Fee (£615).

            - Company maintenance (£1000 p.a.).

            - Stamp Duty (6% on amount above £40,000).

Croatia is situated in Southern Central Europe, a roughly horseshoe-shaped country with a coastline 1,777 kilometres long. No less than 1,185 islands lie offshore, but only 66 of them are inhabited. Italy lies to the west and Slovenia to the north.

Croatia s stunning coastline is on the Adriatic Sea, one of the cleanest seas in the Mediterranean and wonderfully warm.

Croatia is much closer to the UK than many people imagine, only two and a half flying time from London and three hours from Manchester and Birmingham.

Weather in Croatia

The best period to visit the Croatian coast is from April to October. Peak temperatures in high season summer months (July, August) can reach 38°C (100°F), and the water surface at that point reaches a comfortable 26°C (79°F).

High season has its obvious advantages for people looking for fun and excitement and disadvantages for others, but in Croatia you can always find some nice hidden place if you want to sleep far from loud music.

Spring starting in March can bring some rain showers, but the autumn months, September and October, are ideal for travel if you want to relax. In the off season the beaches are less crowded and the prices drop, weather, however, remains stable and the water is still agreeably warm.

Generally, you can travel along the Croatian coast at any time of the year. During winter season, however, you should pack some warm clothing in spite of the mild Mediterranean climate. The temperatures seldom drop below the freezing point but some winds might be unpleasant in the winter.

Food & Culture

Croatian cuisine is heterogeneous, and is therefore known as the cuisine of regions. Its modern roots date back to Proto-Slavic and ancient periods and the differences in the selection of foodstuffs and forms of cooking are most notable between those on the mainland and those in coastal regions.

Mainland cuisine is more characterized by the earlier Proto-Slavic and the more recent contacts with the more famous gastronomic orders of today - Hungarian, Viennese and Turkish - while the coastal region bears the influences of the Greek, Roman and Illyrian, as well as of the later Mediterranean cuisine - Italian and French.

Croatia is justifiably proud of its broad palette of high quality wines and brandies

Croatia is justifiably proud of its broad palette of high quality wines (up to 700 wines with protected geographic origin) and brandies, fruit juices, beers and mineral water. In the south, people drink bevanda with their food (heavy, richly flavoured red wine mixed with plain water), and in north-western regions, "gemisht" (dry, flavoured wines mixed with mineral water).

Many Croatian traditional festivities are distinctly linked with food independently of whether they are related to strenuous labour (crop harvesting or threshing, the grape harvest and Christening of wine, the completion of a house), religion (mostly Catholic - Christmas, Easter, pilgrimages, local saints days), or to memorable moments in an individual s life (baptism, wedding, birthday, name-day, funeral wakes, etc.).

Some festivities are typically of a public character, such as the Dionysian St. Martin s Day, celebrated in private farmhouses, wine cellars and restaurants; others are almost exclusively family reunions (weddings, baptism, Christmas Day, New Year s Day, Easter, etc.).

Living in Croatia

Visas aren t necessary for UK and Irish citizens, although if you plan to stay, you will need to apply for one as a prerequisite for first getting an extended stay visa and, later, permanent residence.

Work permit are required for all non-Croatians. Nationals with no tourist visa requirement (most West Europeans and Americans) are allowed to leave and enter Croatia while the work permit application is in process.

The Croatian currency is the kuna, established in 1993. One kuna is worth 100 lipa. Kuna notes come in 1000, 500, 200, 100, 50, 20, 10 and 5 denominations. Coins are delivered in 5, 2 and 1Kn amounts and 50, 20, 10, 5, 2 and 1 lipa amounts. MasterCard and Visa are accepted practically everywhere, and your Diner s Club and American Express cards can be utilized in a fair number of establishments too.

For opening a foreign currency bank account you only need to provide your passport and a nominal sum and it can be done in any of the main banks. It s a quite straightforward process and takes a short time. Banks in Croatia open at eight in the morning and close very late at seven in the evening.

ATMs are numerous and are available everywhere. Cards bearing the Visa, Cirrus or Maestro names will work everywhere and often prompt a choice of languages in which to effect the transaction.

The population is 90% Roman Catholic and many aspects of Croatia are reminiscent of Italy, Spain and France, where strong family values remain and churches are well supported.

Transport

Istria borders with Slovenia and has a maritime border with Italy. This peninsula is the most popular destination for foreign visitors to Croatia. The tourist season is longer than Dalmatia. Umag and Porec continually top the annual poll of best holiday resorts in Croatia, as organised by the Croatian National Tourist Board and Croatian TV.

Istria is easily accessible from Eastern, Central and Western Europe: Germans, Italians, Slovenians, Austrians, Dutch, Belgium, French and Hungarians between others, access Istria by car and are also starting to buy property in Istria. A big investment is being done with the motorways; a new stage is being built to access Trieste faster. Zagreb, the capital of Croatia, is now also one hour less far and that is an incentive to bring more people to the peninsula.

As we ve said before, most visitors arrive by car, but you can fly in to Pula Airport. It has been said many times that Pula airport will be reached by cheap air fairs; Ryanair and Easyjet have done some incursions already but until now there is not confirmation. The fact is that after Croatia ascension to the EU, Istria will be the closest point to these companies to reach Croatia and the airport of Pula has all the resources and capabilities to deal with these flights. Moreover, it s only just 15 minutes by car to the town centre of Pula.

The Product – Land has clearly stood the test of time in so far as being a saleable commodity which has risen steadily in value over the years. It is also in limited supply – as it is not something which can be manufactured.

Track Record – Land’s track record is without question as a highly sort after commodity, indeed the wealthiest individuals and corporations on all continents usually have substantial land holdings within their portfolios.

Timing – Now is an excellent time to become involved in land ownership. With recent announcements by the government saying that even more greenbelt land will be used to build upon, together with unfavourable investment markets – it makes sense to consider purchasing a part of the nations green asset for oneself.

Statistics over the past 30 years prove that land prices have increased faster than house prices.

Greenbelt, agricultural and forestry land is far less expensive than land which currently enjoys planning consent.

Proven concept – pre-planning purchase of green belt, agricultural and forestry land is nothing new – the large developers have been doing it for decades. Developers “stockpile” land into their own Land-Banks.

What is new however, is that we are now very proud to offer this previously hidden opportunity to the general public.

Most of the large developers handpick their sites in the same way we do, they choose their acquisitions by studying each area for the likelihood of future planning permission being granted.

Every developer knows that each town and city must grow outward and the land most available is agricultural, greenbelt and forestry. Clearly it is preferable and far more profitable to buy land prior to planning applications being submitted.

When purchasing through us, you are buying the Freehold, which means you own the land outright – after completion you receive the title deeds to your plot(s) registered in your own name.

With the increasing demand for land most experts agree that land will continue to increase in value for the foreseeable future.

Earlier we posed the question why land ?

As a now informed prospective owner, the question now must surely be – why not?

Why should I buy land without planning permission?

Land without planning is far cheaper than land with planning.

One day potentially, it may be granted planning - although there is no guarantee of this happening.

Who has the title deeds when I buy through Blenham Investments?

You do - once your transaction is complete the deeds of title will be forwarded to you, giving proof of your outright ownership.

Can I purchase more than one plot?

Yes, you can purchase as many plots as you wish - subject to availability.

What about planning consent?

No planning consent is currently available on any land offered by Blenham Investments, and prospective purchasers are made fully aware of this fact, together with the knowledge that there are no guarantees whatsoever of consent being granted at any time in the future.

What if I want to sell?

Should planning consent being granted in future years, owners will be free to sell to anyone they wish, including other owners, builders and developers etc.

If owners wish to sell prior to planning consent being even considered or granted (if at all) they may sell to other owners or anyone else wishing to purchase on a similar basis to which they did. Blenham Investments will also be happy to offer assistance in finding a buyer - although they cannot guarantee how successful they may or may not be in this endeavor.

Is Landbanking an investment?

Whilst an owner may regard his or her purchase as something that could potentially enhance their futures, the actual transaction is simply a straight forward purchase of a plot(s) of land.

Blenham Investments’ partner owns all plots offered for sale and as such ownership of plots purchased is a simple transfer of title deeds facilitated by the filing of the appropriate land registry papers.

Site Selection.

Our partner: “We are extremely discerning when it comes to the selection of potential sites, - so much so, that we adopt the same types of criteria used by the construction companies and large developers. This means that we turn down many more sites than we buy - we want to know that every site we seriously consider would be the kind of site sought after by the seasoned land-banking organisations. Below is a small selection of the strict criteria to which our specialists adhere when selecting a potential site for purchase.

            - Quality Sites

            - Excellent Potential

            - Local Searches

            - Environmental Searches

            - Close to Existing Buildings

            - Main Road Access

In addition to the above we have also engaged the services of our own expert in the selection process of such sites as we are looking to acquire - he has in excess of twenty years successful experience within the land and property industries - his contribution to our company ensures the best advice and assistance when choosing our valuable sites.”

SOUTHERN CALIFORNIA S POPULATION BOOM: WHAT YOU DON T KNOW COULD COST YOU A FORTUNE!

In the year 1542, when the Spaniards discovered California, native Indians occupied the land. The Spaniards settled in California, later the Mexicans became the landowners, and finally it was the Americans. By 1940 the State of California grew to 10 million residents. This explosive growth started after the Second World War. U.S. soldiers from the East and Midwest passed through Southern California on the way to the Pacific, saw the marvelous climate, the ocean, and the mountains, and came by the hundreds of thousands. At the same time, it brought a tremendous influx of "New Americans" from Europe, Latin America and the Pacific Rim, giving Southern California a diversity of nationalities, languages, and cultures unmatched in the world. Today, Southern California has the largest population of Filipinos outside of Manila, the greatest Hispanic population after Mexico City, the greatest Iranian population outside of Tehran, and a large, growing Asian population. This alone guarantees this region''''''''s dynamic population growth. Also for cultural and religious reasons, many of these newcomers have a much higher birth rate than the rest of the nation: "Every sixth baby born in the United States is born in California. People who are born here and put their roots down; stay here." In view of this, present population predictions are probably too low.

CALIFORNIA S EXPLOSIVE POPULATION PROJECTIONS

The California Census projected that by the year 2000, the State of California would reach a population of 30 Million people. They were low in their projection, because by 1998 we had about 33 million residents in California. According to the California Department of Finance Report issued in February 2005, the State of California’s July 1, 2004 population climbed to 36,591,000. Experts are projecting that in the year 2020, the population of the State of California will reach 50 Million with people coming from all over the world. We believe this is just the beginning for the Golden State.

CALIFORNIA IS THE FIFTH RICHEST ECONOMY IN THE WORLD

Each year the Los Angeles Economic Development Corporation (LAEDC) does an economic analysis to determine the world s richest nations. They only consider those nations with gross domestic products over $250 billion. They include the State of California, in order to compare its economy with the wealthiest countries in the world.

IN THEIR REPORT OF JUNE 11, 2001, THE LAEDC REACHED THESE CONCLUSIONS ABOUT THE FIVE RICHEST ECONOMIES IN THE WORLD: 

            - The United States was #1 with $9,966 billion.

            - Japan was #2 with $4,614 billion.

            - Germany was #3 with $1,867 billion.

            - United Kingdom was #4 with $1,415 billion.

            - California came in a close #5 with $1,330 billion.

This means that if California were an independent country, it would be the 5th richest nation on the planet. This is an amazing finding when you consider that California is only one out of fifty states in the entire United States.

THE APPEAL OF SOUTHERN CALIFORNIA DRAWS NEW RESIDENTS LIKE A MAGNET 

There are few places in the world where you can relax near a warm lagoon, surrounded by a blast of colors from the broad varieties of flowers, where the temperature is moderate throughout the year - while viewing in the distance snow capped mountains.

Southern California is arguably the most geographically diverse location in the world. Where else can you be within an hour s drive of the ocean, mountains, desert, lakes and deep forest? 

 Southern California s climate, ocean, beaches, bays, lakes, deserts, mountains, parks, educational institutions, industries, agriculture, sports, entertainment, airports, and our proximity to Canada and Mexico make it the most attractive area in the world. It is also the gateway to the multi-dollar Pacific Rim market, which is growing exponentially on a daily basis.

THE PHENOMENAL GROWTH OF SOUTHERN CALIFORNIA 

We already know that the entire State of California is projected to grow to 50 million residents by 2020. With 2/3rds of the population of the State residing in Southern California, the growth of this region has been nothing less than spectacular. They are forecasting SOUTHERN CALIFORNIA to grow from about 23 million to about 33 million people by 2020. This projected increase of about ten million people will result in traffic jams, overly crowded conditions, and sky-high housing prices. Today, the median price of single-family homes in Los Angeles, Orange and San Diego Counties has risen to about $600,000. The prices of vacant land in these areas have already gone through the roof, which is a major factor contributing to the high cost of housing.

Historically, countless fortunes have been made in land banking by individuals who understood the concept of buying and holding pre-developed land in the path of growth. They did nothing more than buy and hold land in Southern California s booming regions, in areas such as Los Angeles, San Diego and Orange Counties. Today, these areas have become very expensive. Commercially zoned vacant land in Orange County can sell for about $40 per square foot or about $1,724,000 per acre. The question remains: where can you still find affordable land in Southern California? Where will tomorrow’s Southern California residents find affordable housing?

Today, some of the greatest growth rates in the Nation are taking place in Southern California’s Victor Valley and Antelope Valley. The Victor Valley is situated inside of a 75-mile circle surrounding the Los Angeles Basin. It is also located in Southern California s Inland Empire, which contains both Riverside and San Bernardino Counties. The Antelope Valley encompasses both Los Angeles and Kern Counties, and is located within a reasonable drive from Los Angeles and other metropolitan areas. The Victor Valley and Antelope Valley offer affordable land and homes in dynamic growing regions of Southern California. New homes in these communities are priced from $200,000 to $400,000.

Our partner specializes in choice, close in land parcels in prime locations in Southern California. Many of these properties are zoned residential, industrial or commercial. Prime acreage parcels can be purchased with affordable long term financing.

A 75-mile circle surrounding Los Angeles encompasses the Victor Valley region of Southern California’s Inland Empire. Professional Land Corporation has a diverse inventory of prime Southern California properties in a multitude of locations, including the fabulous Victor Valley, and other Inland Empire locations that lie outside of the Victor Valley, such as Barstow and the surrounding communities.

The Inland Empire

The Inland Empire consists of San Bernardino and Riverside Counties. The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States. Furthermore, the California Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California.

THE CALIFORNIA DEPARTMENT OF FINANCE PREDICTS THAT THE INLAND EMPIRE WILL BE THE FASTEST GROWING AREA IN CALIFORNIA

According to the Economist, John Husing, in his Report for the year 2000, the CA Department of Finance has predicted that the Inland Empire in the next decade will be the fastest growing urban area of California. The Inland Empire is projected to add 1.1 million more people by 2010, a 34.2% growth rate. That will represent an average gain of 110,121 per year. As a result, the 2010 population would reach 4,310,000. Moreover, according to the Husing Economic Report for 2003, for the period between 2000 and 2020, the Inland Empire is expected to add more people than Los Angeles County and just less than Orange, San Diego, and Ventura and Imperial counties combined.

THE U.S. COMMERCE DEPARTMENT HAS PREDICTED THAT THE INLAND EMPIRE WILL OUTPERFORM THE GROWTH RATE OF ANY OTHER AREA IN THE UNITED STATES

The U.S. Commerce Department has predicted that the Inland Empire, which lies next to Orange, Los Angeles and San Diego Counties, will outperform the growth rate of any other area in the United States. It has been further noted that by 2005, this area will have the same size population (3.8 million) as the 24th largest state (Kentucky) and personal income ($78 billion) as today’s 25th largest state (Alabama).

According to the Husing Economic Report for 2003, from 2000-2020, the Inland Empire’s population is expected to increase from 3.27 million in the year 2000 to 4.83 million in the year 2020, which represents an increase of 1.56 million people. That is more people than would be added by 45 of the 50 states, the exceptions being California (12.8 million), Texas (5.6 million), Florida (4.4 million), Georgia (1.7 million) and Washington (1.6 million).

This area has become a tornado of economic activity and job creation with hundreds of companies moving into the area or expanding their operations in the last three years. Many of them have relocated from Los Angeles, San Diego and Orange Counties. According to the Inland Empire Quarterly Economic Report, April 2005, the Inland Empire is projected to add 40,100 jobs in 2005, which would bring the region’s employment total to 1,208,633 in 2005.

SAN BERNARDINO COUNTY ASSESSED PROPERTY VALUES HIT A NEW RECORD HIGH FOR THE FISCAL YEAR 2005-2006, LED BY VICTOR VALLEY CITIES 

According to the Victorville Daily Press, July 9, 2005, the assessed value of property in San Bernardino County for the fiscal year 2005-06 rose by 14.5 percent to $126.5 billion, according to figures released July 8, 2005 by the San Bernardino County Assessor s Office. San Bernardino County encompasses the largest geographical area of the Inland Empire’s two counties. The countywide $15.9 billion increase for the 2005-06 fiscal period marks the largest assessed value growth in the county s history and has been the largest percentage increase in 15 years, Assessor Williamson said. "San Bernardino County continued to profit by the strong economic growth in the area. We are fortunate to live in a county with a diversified economic base and a unique quality of life."

The cities of the Victor Valley portion of San Bernardino County led the pack in these increases. Adelanto had the largest roll increase, rising 31.2 percent, which makes it the County’s fastest developing city. Victorville and Hesperia followed closely with increases of 28.6 percent and 25.8 percent respectively. Apple Valley experienced an increase of 18.5 percent. Assessed valuations in the city of Barstow increased 5.3 percent. While Barstow is not located in the Victor Valley, it is part of the Inland Empire.

ONTARIO HAS BECOME A POWERHOUSE IN THE INLAND EMPIRE 

Ontario Mills Shopping Mall

According to the San Bernardino Sun, March 11, 2003, the City of Ontario emerged as the Inland Empire s powerhouse in retail sales according to the 2001 State Board of Equalization Report on Taxable Sales in California. Ontario had a staggering $3.62 billion in taxable sales. Thanks largely to the Ontario Mills Shopping Mall and strong automobile sales, Ontario had $2.464 billion in sales at retail stores and $3.62 billion at all outlets. Jack Kyser, the chief economist with the Los Angeles County Economic Development Corporation, compared Ontario to retail powerhouses such as Costa Mesa and Beverly Hills. Costa Mesa s numbers in particular ($2.473 billion from retail stores, $3.16 billion overall) are very similar to Ontario s.

Ontario International Airport

Ontario also can brag about its International Airport. According to Airport World Magazine, February/March 2003, Ontario International Airport is listed among "six of the best" air cargo airports on the planet, and is ranked among the fastest growing and ambitious cargo airports outside of the thriving Asia-Pacific market. Airport World is the official magazine of the Airports Council International that has over 535 international airports and airport authorities in its jurisdiction, running over 1,400 airports in more than 165 countries. Air cargo traffic at Ontario increased 18.3 percent from 2001. "We have an excellent logistics and transportation at Ontario International Airport," said Dennis Watson, Ontario s Director of Public Affairs. This is good news for the entire Inland Empire region.

THE INLAND EMPIRE IS THE NATION S STRONGEST APARTMENT MARKET

According to the San Bernardino Sun, March 21, 2003, the Inland Empire topped the list in Marcus & Millichap s 2003 National Apartment Index, a study that rates the health of 40 apartment markets nationwide. The report is based on a series of 12-month, forward-looking supply-and-demand indicators, including employment growth, vacancy rates, construction, housing affordability and rent growth. According to the index, the Inland Empire has an expected rent growth of 4.5 percent for 2003, which is the highest among the 40 markets studied in the United States. This year''''''''s vacancy rate for the Inland Empire is 3.5 percent and falling. Employment growth is listed at 1.9 percent. "When we look at employment and the lack of new apartments, suddenly all the stars are in alignment, said Steve Johnson, director of Metrostudy Corp., a Riverside-based real estate consulting firm. "Our area should be a very attractive target for the Nation’s apartment builders. San Bernardino and Riverside counties have emerged as the West s strongest rental market with a 6% increase from the same period last year. According to the San Bernardino Sun, January 22, 2004, the Inland Empire’s apartment rents grew 6.4% in 2003 and showed the highest increase on a percentage basis of any other region in the Western United States. The metropolitan areas surveyed were in California, Washington, Colorado, Nevada, Oregon, Arizona, Idaho, Utah and New Mexico. Rents in Los Angeles, Orange and San Diego counties lagged the Inland Empire’s 6.4% increase and rose only from 3.3 percent to 4 percent, the study said.

THE INLAND EMPIRE IS THE NATION S STRONGEST HOUSING MARKET

According to the San Bernardino Sun, February 12, 2004, the Inland Empire s San Bernardino and Riverside counties registered the strongest rate of appreciation in the U.S.A. during the fourth quarter of 2003. "It s absolutely amazing what is happening. Every quarter is outdoing the previous one," said the owner of Riverside-based GMAC Park Place Realty. During the fourth quarter, the median price of an existing home in the Inland Empire reached $239,400, an increase of 28.9 percent from the comparable period a year earlier, the National Association of Realtors reported. The Inland Empire beat out Sarasota, Fla., to claim the national title for price appreciation. Median prices of existing homes in Sarasota jumped 26.1 percent to $222,100, the survey of 127 metropolitan areas found. The $239,400 median price is nearly $70,000 above the national median of $171,600. But John Husing, a Redlands-based regional economist, said that even with its increases, the local median is far below both the state median of $391,680 and the medians of neighboring coastal counties. "One of the reasons our prices are climbing so rapidly is because of a tremendous demand from people who can t afford to live in the coastal counties." With Orange County the second-most expensive in the nation at $526,800 and San Diego County third at $456,700, the two-county region still looks comparatively cheap.

INC. MAGAZINE NAMES THE INLAND EMPIRE THE NUMBER 2 BEST METRO AREA FOR BUSINESS IN THE U.S.A.

According to the San Bernardino Sun, 2-10-04, Inc. Magazine has named the Inland Empire (San Bernardino/Riverside metro area) as the nation s second best large metro area for business. Despite California s budget crisis, high workers compensation rates and high-energy costs, the two-county area edged out Las Vegas, San Antonio and West Palm Beach, Fla., which are the cities that round out the top five. Atlanta came out on top. Orlando and Phoenix ranked 11 and 12, respectively, while San Diego placed 15th in the survey. The Magazine based its findings on a review of job growth data in 277 cities. "San Bernardino/Riverside Counties (the Inland Empire) have consistently been on top of job growth (in the state) for years. The decline in the stock market really didn t affect it. Since 1990, more than 600,000 people have moved into the area, many of them minorities. "Such growth provides business opportunities for entrepreneurs," the article said. Michael Bazdarich, senior economist for the UCLA Anderson School Forecast, said the Inland Empire Region benefits from its location next to the huge Los Angeles market. The Inland Empire’s reasonable cost-of-doing business and business-friendly local government gives local businesses a leg up on the competition, he said.

WHY IS THIS HAPPENING IN THE INLAND EMPIRE?

The answer is jobs and housing. During the 1990’s Southern California suffered a strong recession and many jobs were lost to other states. However, there was no period when the Inland Empire’s job creation stopped growing. Between 1990-2000, the Inland Empire added 261,000 jobs, while Orange County added just 200,000 and Los Angeles County added about 100,000. In 2004, the Inland Empire added 2,200 professional jobs like civil engineers, accountants and lawyers. According to the Economist, John Husing, that number was equal to almost one-third of the total professional jobs added by the entire State of California. The Inland Empire is the home to 27 colleges and universities, which produce an educated and highly skilled labor force. This will help the future labor force of the region, and should continue to attract the interests of large corporations in the United States and worldwide for many years to come. This impressive labor force has contributed to Riverside and San Bernardino counties representing one-third of the Southern California housing market. When Data Quick started tracking the region 17 years ago, Riverside s and San Bernardino s slice of the regional homes sales activity was about half that size. In just the first two months of 2005, Inland Empire builders pulled building permits for 5,564 detached homes vs. 416 in Orange County, according to the Construction Industry Research Board.

The Inland Empire s land values have already become expensive. Commercially zoned vacant land in Ontario, Chino Hills and the Moreno Valley already sells from about $10 to $25 per square foot or about $435,000 to $1,089,000 per acre. Residential land values in these Inland Empire communities have also gone through the roof. On the other hand, the Victor Valley, located in the Inland Empire North, offers reasonably priced properties in a dynamic, growing region.

The current housing market in the UK is extremely strong and many home owners are finding that they have a large amount of equity in their property, and are choosing to invest it in one of the most comfortable and profitable regions of Europe - southern Spain.

So, why not make the most of your equity and invest in a property in Spain? New developments in Spain are being constructed constantly, the reason being that they sell quickly (in most cases through off-plan investment schemes). You can purchase them for 75% of the market value and then find that their value has gone up by 20% in the first year. If you are not planning to live in them all year round, you are unlikely to have a problem renting them out.

There is so much property in Spain, so choosing your dream Spanish property can be a very daunting task. With such a reliable climate, affordable housing, health care, leisure, cultural activities and airports, it is no wonder that Spain has become so popular for buying a property.

Property development in Spain has also become extremely competitive due to the increase in demand for off-plan investment. Off-plan investment in Spain is generally a surefire way of optimising returns on investment in Spanish property. The Costa del Sol and Costa Blanca have a lot to offer on this kind of investment.

To make purchasing a property in Spain easier, it is always useful to decide before you start, in what area you want to look, and within that area, which part you would most like to make a property purchase i.e. you may like the idea of buying a property in Marbella and particularly like the Golden Mile as an area within the town. It is always useful to look at different types of properties in different areas so that you can get a really good idea of what you can get for your money. Once you have done this, your judgement will be a lot more insightful when making an offer.

There are many reputable estate agents in Spain, and of course, there are a lot of sharks as well! Recommendations are always useful when making the decision as to which real estate agency to approach, especially when the recommendation has come from a resident or a lawyer.

A good real estate agency in Spain should have a wide portfolio of resale and new developments, and show interest in what the customer wants instead of the customer having to choose what the agency has on their books. A commendable agent will have good market knowledge on many areas and property types and will match your requirements to the best of their ability. And once you have made your Spanish property purchase, the service should not stop there as they should stretch to help you settle into your new home by informing you of local services and amenities, as well as advising you where to go for specific furnishing requirements.

1. An established estate agent with experience of the market.

2. A lawyer who is familiar with Spanish law.

Over the last few years more people have been attracted to making the move and moving to the coast either as a permanent resident, a residential tourist or to work.

What investment options are available?

There are 3 standard off-plan investment routes followed by our clients according to which type of return they are looking for:

          - Short-term/quick return

          - Medium-term/longer-term investment

          - Buy-to-let (maximum rental return)

However, it is important to stress that having committed to one route; it is not set in stone and can be changed at any stage of the process. (i.e. a short-term investor could decide to hold on to the property and turn it into a buy-to-let and vice versa).

We recommend that you take advice regarding tax implications from a professional tax/financial consultant.

Estate Agents

Once you have decided to make a purchase the first step is to choose an estate agent who has knowledge of the appropriate property market in Spain and experience within the area of your choice.

When the property is established (i.e. second home, investment property or permanent home), the agent will be able to guide you to the correct choice for your budget, quality, area and purpose.

An experienced and professional estate agency in Spain will match you with an agent who has expert knowledge of your chosen areas, speaks the same language and who is able to recommend tried and tested supplementary services, such as lawyers, financial advice and currency exchange.

An experienced estate agent will also be able to supply you with details of the extra costs involved of purchasing property in Spain. It is expected that taxes and charges will be liable, however, they may be different from your current local and national taxes and it important to be aware of the projected annual costs, such as; Community Fees, Property Income and Wealth Tax, Annual Real Estate Tax (IBI) and utility bills etc. It is advisable to seek legal advice to ensure that all of the charges are apparent.

Legal Advice

Choosing the right lawyer is essential in order avoid any unnecessary problems and is your guarantee that the correct Spanish legal procedure is adhered to. If you do not have your own lawyer, there are many excellent English speaking lawyers in Spain, who will be able to assist you and protect your interests throughout every step of the buying process.

The lawyer will make sure that the property is registered in the vendor''''s name; it is free from charges, debts or other liabilities (as any debt on the property will be passed on to the new owner).

Although, your estate agent is instrumental in organizing the fine details of your property purchase, it is your lawyer who will liaise with the vendor to negotiate the completion date, form of payment etc. and will ensure that the timetable of events is adhered to.

After you have put down your initial reservation fee, this is the stage that your lawyer will take over the procedure. The lawyers will draw up a private purchase contract and it is customary to pay a 10 per cent deposit on the total cost of the property which is non refundable if the purchaser decides against the transaction. However, should the vendor fail to fulfil their obligations, the deposit is refundable and the contract will be void and damages could be liable. Before the exchange of contracts, the lawyer will complete the necessary searches on the property.

On the completion date the lawyer will go to the Notary Public and sign the deed and pay the final payment of the purchase price. At this stage the property will belong to the purchaser and the keys will be handed over, completing the transaction.

The Notary Public will forward details of the title deed to the land registry to inform them of the new owner and to prevent the property being sold twice and at this stage taxes will be payable.

Taxes Payable

          - Re-sale properties - transfer tax (ITP) at 7%

          - New properties - VAT (IVA) at 7% and stamp duty of 1% (VAT (or IVA in Spain) increases to 16% if purchasing plots of land, commercial premises or garage spaces).

          - Plusvalía - tax levied by local the town hall is based on:

                      Area where the property is located

                      Surface area of the land

                      Date of the previous title deed

          - Lawyers fees - between 1 % & 2% of the purchase price plus VAT (IVA) at 16%.

Fees Payable

          - Notary Public - charges calculated on a fixed scale ranging from:

                      €340 for a property price of € 120.202

                      €601 for a property price of € 601.012

          - Land Registry - approximately 40% of notary charges

Tax Issues When Investing In Spain

There is a 7% tax on resale and new properties. For staged payments on a project build, the tax is paid on each staged payment.

Liability to Yearly Taxes due to the Ownership of Real Estate in Spain

As a non-resident owner of property in Spain, you are liable for Spanish taxes. Taxes are classed as either Municipal or State.

Municipal Taxes include:

Tax for the collection of rubbish (Recogida Domiciliaria de Basura). This is often included in your Community Fees. 

Municipal taxes are paid annually to the Town Hall. These vary depending on the area in which you purchase your property. 

Each Town Hall has its own period for voluntary payment, favouring prompt payers with certain discounts

State Taxes include:

Wealth Tax - This is paid annually on the 31st of December and is calculated by percentage value of the property.

Property value is taken as the highest of the following:

          Purchase Price

          Cadastral Value

          Value checked by the taxation authorities.

Income Tax for Residents

This is calculated according to two criteria:

          - If the property is used only by its owner

          - If the property is rented to a third party

In the first case, the income on which the tax is applied is a legal income and is presumed to have been yielded to the benefit to the owner of the property. This is calculated at 2% of the cadastral value of the property. The tax paid is 25% of this amount.

Property Types in Spain

Apartment - all on one floor in a building with at least 3 floors

Townhouse - terraced house with at least 2 floors (does not have to be in the town)

Chalet - detached or semi-detached property

Villa - detached or semi-detached property, generally in own grounds with own swimming pool

Duplex - apartment spanning 2 floors in a building of at least 3 storeys

Penthouse - apartment or duplex on the top floor of an apartment building

What is a Gestor and do I need one?

A Gestor is specifically a Spanish phenomenon and is essentially an agent (fiscal representative) who will deal with all the necessary bureaucracy associated with living in Spain for a reasonable fee. The Gestor is not a lawyer, but has knowledge of the procedures, taxes and fees payable and can save you the time and frustration of dealing with potentially complicated systems, and just as importantly, ensuring that no fines are incurred for non-payment of taxes that you were not aware of.

What is a Spanish Notary Public?

Although the Spanish Notary Public (notario) is a lawyer, their job is strictly to witness the signing of the title deeds and to ensure that all liable taxes are paid on the completion of the transaction. Any legal advice required by the vendor or purchaser must be obtained from a separate lawyer.

Notaries are paid both the vendor and purchaser. They are charged on a sliding scale set by the Spanish government, which vary depending on the property price and the amount of work in preparing the documents.

Prior to preparing the deed of sale (escritura), the notario makes sure the property and price are correct and will also advise of any taxes, which are due on the property.

When the deed of sale is signed both parties should be present and if not, a nominated power of attorney (Poder Especial) to represent them and will be witnessed by the Notario (of course this will incur and additional cost of 40€ to 100€!).

Having signed the deed of sale and the purchase price has been handed to the vendor, the proof of payment is noted in the Escritura which is then registered with the local property register. Non-residents will need to relinquish 5% of the purchase price to be paid as Capital Gains Tax.

Having purchased your property you will be liable for the following basic expenses:

          - Community fees. Charged for the upkeep of the community grounds, communal areas, facilities and security should this be a service on your           particular urbanization.

          - Rates

          - Rubbish collection

          - Income

          - Wealth Tax. Approximately, 1.5% of the purchase price per year.

          - Water

          - Electricity (Spanish homes do not have piped gas and if required is purchased in bottles)

          - Insurance

How do I arrange to retire in Spain?

Retiring to an EEC country does not necessarily have to be a daunting prospect and the way to avoid any of the common pitfalls is thorough research BEFORE you go. The most important step is to find out the legalities and your financial feasibility of settling in a foreign country (even in Europe).

Useful Addresses for Over 50''''''''s Retiring to Spain

Age Concern Information Line

Freepost (SWB 30375),

Ashburton,

Devon TQ13 7ZZ.

Tel: 0800 00 99 66

Fax: 020 8765 7211

Web: www.ageconcern.org.uk

The Association of Retired and Persons Over 50 (ARP/O50)

Greencoat House,

Francis St,

London SW1P 1DZ.

Tel: 020 7828 0500

Fax: 020 7233 7132

E-mail: info@arp.org.uk

Web: www.arp.org.uk

Inland Revenue

International Branch,

Benton Park View,

Newcastle-upon-Tyne NE98 1BA.

Tel: 0845 9154811/ Overseas: 00 44 (0) 191 225 4811/ Fax. 0845 9153232

Overseas:00 44 (0)191 225 3232

Web: www.inlandrevenue.gov.uk/international/index.php

For details of UK Income Tax whilst abroad contact:

Inland Revenue

Centre for Non Residents

St John''''''''s House

Merton Rd, Bootle,

Merseyside L69 9BB.

Financial Intermediaries and Claims Office:

Tel: UK 0845 0700040

Abroad +00 44 (0)151 210 2222

National insurance contributions

Inland Revenue,

National Insurance Contributions Office,

International Services,

Longbenton,

Newcastle upon Tyne, NE98 1ZZ.

International Services Helpline:

Tel: UK 084591 54811 / Abroad +00 44 (0)191 225 4811

Fax: UK 084591 50067 / Abroad +00 44 (0)191 225 0067

Email: internationalservices.ir.sbg@ir.gsi.gov.uk

Retirement Pension Forecasting and Advice Unit (RPFA)

Department for Work and Pensions,

Newcastle-upon-Tyne, NE98 1BA.

Tel: +00 44 (0) 191 218 7585

Fax: +00 44 (0) 191 218 7293

Web: www.dwp.gov.uk/lifeevent/penret/index.php

Do I need to apply for residency ?

When moving to another country it is important to make sure that all paper work is in order and that you have researched all aspects of living overseas including financial, social and cultural. Here is a brief checklist of points to consider before becoming a resident (ex-patriot) in another country.

          - Ensure your passport is valid until you next indent to return to the UK.

          - The law in Spain specifies that a person who has been present in Spain for six months must either leave or apply for a residence permit (residencia).         However, since 14th February 2003, it is no longer necessary for EEC citizens to apply for residencia, unless you open a business, to obtain credit etc. However, this ruling does NOT apply to pensioners. It is necessary for pensioners retiring to Spain to apply for residencia.

          - If you intend to have any financial dealings, apply for an NIE (foreigner''''''''s identification and social security number) at the police station. This is will be needed to set up a bank account and also when you start a job.

          -  Set up a current account in plenty of time. The bank will issue cards with your account details on, which you can present to your employer and other official bodies

          - Arrange adequate insurance.

Culture
Being at the crossroads of Europe and Asia , throughout the centuries, Bulgaria and its people have developed a culture of hospitality and vitality. The Bulgarian mentality combines the emotionality of Mediterranean people and the pragmatism of West Europeans. Bulgarian festivals and customs date back to the ancient times. Full of beauty, gaiety, mystical voices, fiery dances and brightly colored costumes - Bulgarian folklore has to be seen, felt and experienced!

Climate
Bulgaria has an extremely varied relief - large plains and lowlands, low and high mountains, valleys and lovely gorges. The climate is temperate continental with clearly marked four seasons. A Mediterranean influence is felt in the country''s southern regions. The average annual temperature is 12.8° C. The average January temperature is around 4° C. Average summer temperatures rarely exceed 30° C. The average annual precipitation is about 500 – 600mm/sq.m. There are 300 sunny days per year in Bulgaria. The time is 1h before the Central European Time /CET/.
Language The official language is Bulgarian. English, German, French and Russian are
spoken in the country''s resorts, hotels and restaurants. Most of the information is both in Bulgarian and English, making it easy for everyone to get around. Bilingual menus, announcements and instructions, as well as official documents are the norm.

Currency
The official monetary unit in the Republic of Bulgaria is called LEV (BGN). Since 1997 the country is in the conditions of a currency board. Since 1st January 2002 the Lev is attached to the Euro at a fixed rate of 1,95583 Leva for 1 Euro. Only Leva of emissions after 1999 are valid. The Bulgarian paper notes comprise the following bank-notes: 1 Lev; 2 Leva; 5 Leva; 10 Leva; 20 Leva; 50 Leva; 100 Leva. 1 lev (BGN) equals to 100 stotinki which are in Coins.

Cost of Living
The cost of living (for maintenance of your property and everyday expenses) is surprisingly low compared to Spain, France, Greece, Italy. A breakfast in an ordinary restaurant costs about 5 Leva (1,73 £), a three course lunch costs about 10 Leva (3,50 £) and dinner for two with wine liquor is 30 Leva (10 £). Alcoholic drinks are on sale in most food shops, and in numerous specialised pubs. Bulgarian wines are famed for their exceptional quality; Bulgaria is one of the world’s major wine producers and exporters. The price of one bottle of 0.75 litres of good dry wine varies between 3 and 8 Leva (1,00 – 2,75 £) . Bulgaria’s traditional liquor is called rakiya. The price of a 0.7-litre bottle varies between 3 and 10 Leva (1 – 3,50 £). Imported brand drinks are available everywhere. Their price is close or lower to that in the producer countries. Beer, locally brewed with perfect quality and imported is very popular, either tapped or bottled. The price of a 0.5-litre bottle varies between 0,5 Leva and 2,50 Leva (0,17 – 0,86 £).

Tourism
Tourism is recognised by the government as a key industry and as a result more than 4 Million tourist visited Bulgaria in 2004. Low property prices, beautiful countryside, historic towns and unchanged rural traditions surprisingly low cost of living made Bulgaria destination Number 5 for the European tourists in 2004. The lovers of tourism and recreation come to Bulgaria , to have a good rest in a comfortable conditions. What is also important – absolutely safe and cheap. Long since Bulgaria has had a reputation of a peaceful country. Its inhabitants and visitors obey the law and respect its peace. The fact that Bulgaria is an associated member of the European Community is a worthy confirmation. The essential thing is: Bulgaria is beautiful, ancient, interesting, mysterious. You can bravely apply all these definitions.
Main cultural attractions In Sofia – the Botanical Museum in the National Botanical Garden, the National Archeological Museum, the National History Museum, the National Theatre “Ivan Vazov”. Among the architectural monuments in the capital are: the church “St. George” / 4th century/, the cathedral “St. Sofia” /6th century, the cathedral “St. Alexander Nevski”. Not far from Sofia the Boyana Church is situated with its unique mural paintings from 8th century. The towns – museums with world fame are: Arbanasi, Bozsentsi, Veliko Tarnovo, Etara, Zseravna, Koprivshtitsa, Kotel, Melnik, Nesebar, Sozopol, Triavna. The wine-growing traditions ranks among the centers of the “wine tourism”.

The lowest prices of top quality properties for now;

The very low cost of living compared to Spain, France, Greece, Italy.

The forthcoming EU membership in 2007 is a guarantee for a good investment - at least a double price increase of apartments is expected.

Bulgaria is very stable politically and is well situated geographically.

The real estate market

As for the Bulgarian real estate market, top quality property can still be bought at a very low price. Over the past year prices have risen sharply, particularly in the main coastal areas, but there is still a long way to go to reach "European levels".

Property ownership

Foreigners are able to purchase real estate properties without special licenses from the government. The property is freehold and owners possess practically eternal building right.

Investment opportunities

According to the UK mass media Bulgaria is among the most preferred countries, where British people would like to invest. A double increase of the prices is expected as a result of Bulgarian EU membership in 2007. Capital growth in the last 18 months has been over 50% and this trend seems to continue. The Bulgarian Ministry of Tourism has reported that more than 4.5 million tourist have visited Bulgaria in 2004 and more than 5 million are expected to visit it in 2005. This is a proposition for high and stable rental income from costal property in Bulgaria.

Why in Sunny Beach?

The most famous and the most modern Bulgarian Sea Resort is an additional guarantee for an advantageous investment. Sunny Beach (Slunchev Bryag) is the place where you can enjoy superb “Blue flag” beaches. The most famous Bulgarian sea resort offers entertainments to suit just about everybody, from families with small children to seekers of solitude. Doze off by the beach, enjoy the water sports, or explore nature inland. Keep fit in fitness gyms, sport facilities and football fields.