Cyprus Today

USEFUL INFO

CYPRUS – FAQ’s

International Relations
Cyprus became a full member of the EU in May 2004, granting to the island all the rights and privileges entailed therein. It is also a full member of the United Nations, the Council of Europe, the Organisation for Security and Co-operation in Europe, The Commonwealth, The Australia Group, the G-77, the International Criminal Court and Interpol.

Climate
Cyprus has a Mediterranean climate with approximately 340 days of sunshine each year, hot dry summers from June to September, and relatively mild winters from November to March. The autumn and spring seasons are therefore short and can change rapidly.

Crime
Cyprus has a very low crime and vandalism rate in comparison with other Mediterranean countries, such as Spain and Italy. According to Interpol statistics, the crime rate in Cyprus is only one-tenth the average among other European countries and only one-sixth of the UK.
Therefore buying Cypriot property will mean you can enjoy personal security, and not have to worry about turning your home into a fortress.

Banking
The banking system in Cyprus is modeled on the British system. The major banks have branches in convenient locations and they are well equipped with the latest technology. Major credit cards such as Visa and Mastercard are widely accepted throughout the island, and EU membership means you can transfer money in and out of Cyprus as you please.

Standard of Living
A few days on the island will show you that Cyprus enjoys an enviable European standard of living, while the cost of living on the island remains low in comparison to other European countries.

Legal System
The legal system in Cyprus is modeled on that of Britain, due to its colonial legacy. In addition, with EU membership, Cyprus has harmonized its laws and regulations in line with the ‘acquis communautaire’. In effect this means EU citizens can now buy more than one property in Cyprus.

Land Registry
Cyprus has one of the most advanced and reliable systems in the world. Purchases of property in Cyprus will therefore be far more secure with regard to their Title deeds than in many other countries. Furthermore, legal fees and buying costs are much lower than in other European countries, and all contracts and paperwork are in English.

Buying Costs
From May 2004, when Cyprus entered the EU, VAT has become payable on private property. All of our price lists quote total VAT inclusive prices.

Capital Gains Tax
Property sales in Cyprus are subject to capital gains tax at the rate of 20% on the gain. However, the first CYP 10,000 of gains is tax exempt, and if a couple own the property, this allowance doubles to £20,000. Gains from the sale of a house are exempt up to CYP 50,000 if the owner resides in it for at least 5 years prior to the sale.

Inheritance Tax
This tax has been abolished in Cyprus as from January 2000.

Stamp Duty
The purchaser is liable for the payment of stamp duty at the rate of CYP 1.50 per thousand, up to the value of CYP 100,000 and CYP 2.00 per thousand, above CYP 100,000.
Example: Purchase price CYP 100,000, stamp duty payable – CYP 150.

Property Transfer Tax
Property transfer fees are due when the Title Deeds are transferred into the buyer’s name after completion. This is a one-off fee payable to the Land registry Office according to the following scale:-


Purchase Value Transfer Fee Rate %
Up to CYP 50,000 3.0
50,000 – 100,000 5.0
Over 100,000 8.0

If a property is purchased jointly, the buying cost is split into two equal parts, and then taxed, producing substantial benefit to purchasers.

Other Costs after Purchase
Electricity connection CYP 75
Water Connection CYP 32
Telephone Connection CYP 100

Ongoing Costs
a. Immovable Property Tax
The registered owner of a property is liable to pay this annually by sliding scale, calculated on the market value of the property as at 1st January 1980 – therefore it is much lower than at current values. Average cost is CYP 50 – CYP100 per annum per property.
b. Local Authority Rates
These are between is CYP 50 – CYP150 per annum, depending upon the size of the property. This tax is for refuse collection, sewerage, street lighting, etc.
c. The basic Utilities
Water & electric are payable individually in accordance with consumption and based on meter readings.

Can I Work in Cyprus? – Yes!
Under the Aliens & Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit. EU citizens can acquire one very easily by applying to the Ministry of Labour.

Education
In addition to excellent public schools, private elementary and secondary schools for English speaking pupils are available.

Health Care
Form E111, available from Post Offices in the UK, entitles the holder to treatment in another EU country. Basic healthcare in Cyprus is of a high standard, with medical centres and hospitals throughout the island. If required, medical insurance is available and can be tailored to individual needs.

Overview.
Cyprus offers an excellent quality of life, at very reasonable cost compared to other European standards. Cyprus has none of the quarantinable diseases (no vaccination is required when entering the island). In addition, sea and air pollution is negligible.
The island welcomed visitors and new residents (who now account for approximately 10% of the population), with a warm and friendly attitude.
It offers tax advantages to those who settle on the island and a lifestyle to be envied.

Customers of Cyprus Freehold Properties are entitled to receive a 15% discount off all car hire bookings through Transhire Worldwide Ltd. Simply click on the logo to the left and link to their website, or phone their booking desk on 0870 7774474. Remember to quote Cyprus Freehold Properties when making your booking to secure your 15% discount.

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