Buying in Cyprus Frequently asked Questions
1. Are there any restrictions in finding work in Cyprus?
EU Citizens are free to live and work in Cyprus simply by supplying their passport as identification. There is a simple form to fill out (form 2DECL) from the Immigration Department in order to work for a period of up to 90 days. For any longer than this (either to work or to start a business) you will be required to begin an application for a temporary residence permit at the nearest Immigration Office. If you purchase property your residency permit is attributed almost automatically.
For non-EU citizens a work permit is required, but to be approved by the Ministry of Labour you will only be required to follow some simple procedures.
2. Will I need a residency permit?
Once you purchase a property and obtain approval from the Council of Ministers (a formality), you become a resident. You can then stay an unlimited period of time in the Republic of Cyprus. In fact, after 10 years as a resident you can apply for Cypriot citizenship.
3. Am I required to open a bank account in Cyprus?
It is not required but we recommend that you do. It will make it easier for you to transfer money from your home country, for cash withdrawals and general banking services etc.
4. Are there any tax advantages in Cyprus?
Cyprus can offer distinct tax advantages for various reasons:
- A Double Taxation Treaty with many countries means that income earned in one country is not taxable in both. This is agreed with the following countries: Austria, Belarus, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Slovakia, Sweden. Syria, United Kingdom, South Africa, United States and former Yugoslavia.
- Retired people who decide to live in Cyprus will not be taxed if their pension is up to CYP2,000 per annum and over that the amount they earn will be taxed at the low flat rate of 5%
- Capital gains Tax is charged at the rate of 20%
5. Will I need a solicitor?
Yes, your solicitor will be able to check that the land belongs to the vendor, has the necessary planning and building permissions, as well as making sure that you are signing a fair and legal contract.
6. How much will I have to pay for legal fees?
>Approximately 1% of the purchase price.
7. Will the property be freehold?
Yes, properties in Cyprus are sold freehold and you can get guaranteed title deeds.
8. How do I get the title deeds to my property?
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the Land Registry office. The contract of sale must be in writing, preferably in both Greek and English and it should be registered at the district Land Registry office within 60 days from the contract date. When issued, the title deed will be registered in the name of the buyer and recorded in the government archives.
9. What are the tax implications if I buy a property in my Limited Company’s name?
All companies tax resident in Cyprus are taxed on all of their income accrued or derived from all sources in Cyprus and abroad. The standard rate of Corporation Tax is 10%.
10. The buying process
With the majority of our developers, once you have decided on a property a reservation of CYP2,000 will fix the price and take the property off the market. After signing the contract you will have up to one month to pay a 20% deposit of the purchase price (less your reservation of CYP2,000). With an 80% mortgage (subject to status) you will start your monthly payments when the property is complete and you have the keys in your hand.
11. How can I finance the property?
You can obtain a mortgage either from a Cyprus bank or by using capital from your home country. If you decide to take a mortgage, interest rates can vary between 4% and 6%.
12. What if I am unable to sign documents personally?
It is quite common to give your lawyer Power of Attorney in order for them to sign the contract on your behalf. You will need to have transferred the final balance for the property plus taxes to them prior to the signing of the deeds.
13. How long does it take between signing the contract and completion?
Carnival understands the importance of a speedy conclusion to the client, and the process is usually completed within 4 weeks with most of our developers.
14. Do I have to use your solicitors when I purchase a property?
Not at all. You are free to use a solicitor of your choice and we can present you with a list of independent solicitors in the local area.
15. How can I furnish my property?
Most of our Developers can present a varied selection of furniture for you to choose from as well as supply a ready prepared set of furniture and accessories to decorate your property. Carnival can introduce you to a selection of local furniture companies where a team of professionals can advise you on the interior design of your property, helping you maximise its appeal to potential tenants.
16. Who will look after my property while I am away from Cyprus?
Most of our Developers offer part or complete maintenance services including pool, landscaping and garden maintenance, cleaning, communal property management, and many other services that you may wish to have.
17. How easy is it to rent a property in Cyprus?
Eleven months of sunshine per year in Cyprus creates a strong demand for property rentals all year round. Many of our Developers offer a rental service to give a professional, hassle-free service to you and your tenants.
18. How easy is it to re-sell a property in Cyprus?
With the increasing demand for properties in Cyprus, re-selling can be very easy, and with our extensive client base, we have access to many hundreds of clients at any one time who are looking for property in just this area.
19. What has been the capital growth in Cyprus for the last few years?
Capital growth has risen at between 15-20% per year for the last three years.
20. What is the expected capital growth for next year?
Capital growth is expected to reach 20% or higher.
