- How do I pay for the property?
By depositing the amount in the bank till you get the approval for the Per. Res.
- Can I work in Cyprus with F category Residency?
You are not allowed to work in Cyprus with F type residency
- Do I have to enter Cyprus every 6 months to maintain the residency?
No you don’t have to. There are no restrictions on keeping your residency as long as you don’t sell your property.
- Can I invite family members and friends to visit me in Cyprus?
Yes you can send them an invitation to the Cypriot Embassy to get their Visa.
- Who gets the Permanent Residency when I buy a property?
You, your spouse and all your family members who are under 18.
- When will Cyprus be a schengen Member?
Cyprus is a member of the European Union and they are expected to be a schengen member in mid. 2011
- What will happen with my residency status when Cyprus becomes a schengen member?
You will be automatically a schengen resident
- can I travel within Europe when my residency becomes schengen?
Yes you can. You can travel and live in Europe.
- Do I pay income tax in Cyprus?
As a permanent Resident with category F .you don’t pay income tax in Cyprus.
- When can I apply for citizenship?
You can apply after 5 years of getting the Residency
- what document do i need to apply for a category F residency?
Non criminal certificate from the country you live in
A proof of income to support your living in Cyprus
- can I get a mortgage for my property in Cyprus?
Yes you can and Eagle Estate will arrange for that with the lowest interest rate with one of the largest banks in Cyprus
Purchasing a property in Cyprus
Compared to many countries, the logistics of property purchase in Cyprus by foreigners are relatively simple provided you undertake legal advice by a serious and professional firm. As an office, whether our clients are purchasing for investment purposes or a holiday home we put our maximum efforts in order to safeguard you rights to the maximum.
As a non Cypriot what am I entitled to buy?
a) an apartment or a house or,
b) a house on a building site not exceeding 3 donums (4,012.5 sq. metres) or
c) a piece of land not exceeding 3 donums for the purpose of erecting a house within a reasonable time.
d) any limitation can be overcome by registering a Cyprus limited company whereas more than 50 of
the shares will be held by a European Union citizen.
Making an Offer
Buying property in Cyprus is not complicated. Instead it is very transparent. The Purchaser makes an offer and if it is accepted it is normal to give a deposit to reserve the property, bind the owner, have the property taken off the market and secure it at that day's price. This in Cyprus, unlike the
UK and other countries, is legally binding, so there is no "guzumping." In the meantime, this gives us the opportunity to do all the prep work. More specifically, we conduct a search at the District
Land Registry in order to discover whether there are any mortgages, impediments or liens on the property the Purchaser intends to buy. We also proceed and determine what the building coefficient is and all necessary acts in order to prevent any mishaps which one might come across in the future.
Preparing a Contract
What do we do? As an office we are against using standard contracts. Instead we examine your case carefully and prepare tailor made contracts which reflect the complexity of the transaction accordingly. Contracts are consequently drawn up and this process takes only a few days provided that all the searches have been conducted and provided we have collected all the relevant documentation necessary from the developer/ Vendor. Upon signing of the contract the buyer must pay at least 20-30 of the value of the property. The remaining sum is paid according to the terms agreed with the seller (if any)
What must my contract definitely include?
• The right to sell your property even though the title deeds are not yet in your name.
• The right to assign
• A twelve month guarantee in regards of defective construction (for new properties)
• An expected delivery date
• A penalty clause in case of late delivery
• An expected time period in which the title deeds will be transferred into your name.
When do I sign my contracts? If you are still in Cyprus by the time the contracts are prepared, you can come by the office and sign all the necessary documents.
What happens if I am not in Cyprus and cannot sign the contracts? We send you the contracts to your home address via data post. The contracts are thus delivered to your door within 48 hours after being sent from Cyprus.
Who will undertake to stamp my contracts and deposit them at the Land Registry? As soon as we receive the signed contracts we contact the developer/ vendor to come and sign the contracts and make any necessary payment. The contracts are then taken to the Tax Office to be stamped and are subsequently deposited at the Land Registry. Once this is done your rights are protected and it provides additional safeguards by blocking the property and consequently not allowing the seller to resell it The contracts must be stamped within 30 days of signing and deposited at the Land Registry within 60 days of signing. The Government archives are confidential and will not be published or made accessible under any circumstances.
How is Stamp Duty Calculated? Stamp duty is levied at the rate of 1.5 per thousand up to € 170,860 and thereafter at the rate of 2.0 per thousand. The purchase contract must be stamped within 30 days of its dated signature; otherwise a fine will be imposed.
How will I know when a stage payment is due? When a stage is completed the developer will notify us that a payment is due. The `Notice of Completion`, will be signed by the civil engineer or the architect. You will have a short period of grace to pay but in any case no funds are handed over
until such a certificate is received.
How do I acquire the Title Deed? Transfer of ownership from the vendor to the purchaser is accomplished through the Cyprus Land Registry Office, either by the buyer in person or by appointed third party with a Power of Attorney. In the case of a non-Cypriot, evidence of payment for the property with foreign exchange must be provided as a prerequisite for registration.
How do I acquire the Permit from the District Council? The transfer of the title deed can be effected once the District Council's permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds. We undertake to begin proceedings at the District Council on your behalf. 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 purchase, and are calculated as follows:
A. Up to € 85,430 3%
B. € 85,431to € 170,860 5%
C. Over €170,861 8%
If two people are buying the property (e.g. Husband and wife), the above figures are for each
person. Thus, a couple purchasing a house for € 170,860 will pay € 5,126 i.e 3% each.
Note- if you buy an off-plan property you may have to wait up to 5 years for your title deeds
(sometimes longer). Don't let this time period worry you. You can still sell a property that does not yet have the deeds...The only thing that you can't do is alter the property in any structural way.
However, in order to be able to sell the property even though you do not have the deeds you must make sure that this right is included in your original contract of sale.
Where will the title deeds be delivered? The Land Registry will send us your title deeds to our
office and we can then send them to you or you can pick them up from our office.
Immovable Property Tax, Services Tax: the annual immovable property ownership tax imposed by the government is approximately €103-€ 205 per year ,depending on the value of the property.
The Municipal authorities also levy an annual property tax at the rate of about €34-€ 51 per year.
Other authorities may also impose a sewage tax of € 34- € 68, depending on the value of the property.
Capital Gains Tax: should the purchaser decide to sell the property at a later rate, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the times of the transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first € 17,086 are tax-exempt for every individual. If the purchase is done through a Cyprus registered company, capital gains is reduced significantly under certain conditions
Inhertence Tax: inheritance tax has been abolished in Cyprus
Tax Privieges: personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time-approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.
Electric and Water Supply & other Municipal Services: charges for utilities are payable to the respective authorities at regular intervals throughout the year. They are based strictly on consumption of each unit. While the cost will vary for every unit, approximately € 308 per unit per year can be considered as a rough guide. The Local Municipal or other authorities are responsible for the regular collection of rubbish. Depending on the area of the property the cost is from € 68 - € 85 per year.
insurance: Comprehensive insurance against fire and associated hazards can be provided until the title deeds are transferred to the owners, at a cost of € 43 - € 171 per year, depending on the value of the insured property. Insurance for the contents of the property is the owner's responsibility.