K.Onisiforou Cyprus Developers

What happens if I want to buy a second property in Cyprus?

If you have a temporary residence permit, you may only register one Cypriot property in you name, but you can purchase several properties in other people's names, such as a spouse and/or children.

If you apply for permanent residence however, you can register as many Cypriot properties as you wish in your own name.

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, and it is advisable that such contracts be registered at the District Land Registry Office within 40 days from the contract date.

When issued, the title deed will be registered in the name of the buyer and will be recorded in the government archives – these are confidential and will not be published or made accessible under any circumstances.
 
Do I have to be here for each stage of the legal process?
 
No, you can instruct you solicitor to act on your behalf, even for the final completion. Lawyers in Cyprus are responsible for chasing up all information required by their clients. Any information you require can be requested direct from the developer or from your appointed legal representative.
 
What can I expect to pay in legal fees?
 
The legal fees usually charged by a lawyer are approximately €854.30. In reality, they start at €512.58 but are dependent on the property purchase price and are subject to VAT (currently 15%).

They cover the review and alteration if required of the Sale Agreement, revision of the General Agreement (which regulates the use of common areas, where applicable) and submission to the land registry for specific performance. In addition, there are stamp fees and the cost of the application to the Council of Ministers (€256.29).
 
How much transfer tax will I have to pay?

The transfer of the title can be effective once the Council of Ministers' permission is obtained along with confirmation of receipt of the foreign funds. Upon transfer 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 – as follows:

• Value up to €85430.07 3%
• €85430.07 -€170860.14 5%
• €170860.14+ 8%
  

How do the cypriots treat foreigners who live there?

You will undoubtedly find your local hosts to be very tolerant, family orientated and friendly. Foreign arrivals are seen to be contributing to the financial growth of Cyprus.

What is the governmental structure in Cyprus?
 
Cyprus is an independent and sovereign republic with the elected president (5 year election cycle) as head of state. The legislative power lies with the elected House of Representatives and appointed council of ministers.

The legal system is based on the British/European system with independent power exercised by judiciary. Cyprus is a member of the EU, the UN, the British Commonwealth, the non-aligned movement, World Bank and IMF.
 
I have a property to sell before I can purchase, can we proceed?

If you have around 30% of the purchase price available, without selling your home, you do have options available to you. Provided that the property that you purchase will not be ready immediately, you can make arrangements with the developer to make stage payments throughout the build, with a final payment upon completion.

What about furnishing my property?

K.Onisiforou Developers Cyprus can help you in a number of ways:

• We can advise on those developments that offer furnished properties or furniture packs readily for sale and discuss this with the sales team on your behalf
• You can discuss your requirements with a member of our staff in Cyprus … with their local knowledge they will know the best places to shop for the type of products you require. Time permitting, we can even take you shopping at no extra cost!
• We can put you in touch with one of the highly skilled and experienced interior designers that we are happy to recommend. Whatever your budget and aspirations are, they can help create the perfect ambiance. Some will project manage the whole exercise from the initial consultation and designs through to the finishing touches or you may just choose to seek preliminary advice and shop for yourself … or elect for a level of service somewhere in between.
  

Can I work in Cyprus once I have moved there?
 
Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit as a formality, and these are easy to obtain. Your employer will be able to help you with this
 
How easily can I arrange property maintenance services?
 
As we only work with the most prestigious companies on the island, you'll find most of these offering in-house property maintenance services - from gardening to pool maintenance, regular cleaning to ad hoc visits. If they don't offer the service you require themselves, they will certainly put you in touch with a reputable company near to your property, ensuring they are best placed to keep an eye on it for you.
 
Will I have to pay in stages?

If you are buying a new build property that is not completed, or is in the process of being built, you will normally agree to stage payments. These vary from development to development, and builder to builder.

However, before you enter into any contract, you will be told the amounts that will be due at each date. Typically, after the initial €3500 reservation fee, a payment of 30% is required within four weeks. Further stage payments can be arranged on an individual basis with the developer, with the balance payable upon completion.

Is Cyprus now a full member of the European Union?
 
Yes. Southern Cyprus was welcomed as a full member of the EU on 1 May 2004.

Should I make a will in cyprus?

It is highly recommended that once you have purchased a property in Cyprus, in your own name, you have a will for your Cypriot assets only.

How do I go about finding a job?

There are several options open to you:

In the press:

Obtain copies of the following newspapers and specialist publications all of which are published in English and contain situations vacant and situations wanted:

    * Cyprus Weekly
    * Cyprus Daily Mail

You can place an advertisement in these and other expatriate and Cypriot publications.

Through the Job Centre:

The local Job Centre can also help you to find work.

On the Internet:

The Internet has hundreds of sites for jobs seekers including corporate websites, recruitment companies and newspaper job advertisements (you can use a search engine to find them).

I'm buying a new property, will I be able to inspect it before I complete?
 
Naturally. With a new property you will be asked to inspect the property with your dedicated after-sales consultant. Then you can confirm everything is to your satisfaction and outline anything that may need to be attended to by the builder, just as you would back home.
 
How do the banks compare?
 
The banking system in Cyprus closely follows the European pattern. The banks have many branches throughout the island which are efficient, modern and well equipped with the latest technology. Non-Cypriot citizens may open foreign currency and local deposit accounts without difficulty, although you will also find branches of many international banks at your disposal.

Major credit cards, such as those within the Visa and Mastercard networks, are widely accepted in Cyprus. Transactions and payments are simply made through your foreign deposit account.
 
Can you explain the double taxation treaty?
 
Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax levied in the taxpayer's country of residence.

Where different tax rates apply, the tax payer will ultimately not pay more than the higher of the two rates of the respective countries. Such treaties combined with very favourable tax rates for international business entities in Cyprus open the doors to significant tax planning opportunities. The fact that Cyprus is not considered a tax haven but rather a country offering tempting tax incentives expels the distrust that international tax havens often arouse.

To date, double taxation treaties exist between Cyprus and the following countries: Armenia, Austria, Azerbaijan, Belarus, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Kyrgyztan, Malta, Moldova, Norway, Poland, Romania, Russia, Serbia/Montenegro, Slovakia, Slovenia, South Africa, Sweden, Syria, Tajikistan, Ukraine, United Kingdom and United States.
 
Should I use a solicitor back home?
 
This isn't necessary, as your solicitor would still have to use a local Cypriot lawyer, and therefore you could be liable for two legal bills! All communication from your Cypriot lawyer will be in English, so don't worry about understanding legal documents.
 
Is the cost of living really much lower?

The relatively low cost of living in Cyprus is definitely one of the advantages that appeals to the potential buyer. The island offers a full but comparatively inexpensive lifestyle.

The local markets flaunt a wealth of colourful fresh fruit and vegetables, meat and fish … locally grown and produced … whilst the modern supermarkets are fully stocked with a large range of local and imported goods.

Can I still receive my pensions or benefit if I live in Cyprus?

Your UK/ROI retirement pension or other benefits can be paid directly into your bank account at home or abroad. For further information, visit the following websites:

UK - www.dss.gov.uk
ROI - www.welfare.ie

Will I have to pay a reservation fee?

When you have found your ideal property, a non-refundable reservation fee of €3417.20 will be due. The reservation fee forms part of a legal contract, which fixes the price as agreed at the time of payment, and guarantees you will not be affected by any future price increases.

This sum will be held by the lawyer, licensed property conveyancer or developer, and the contract of sale will be drawn up for your agreement and signature.

What about inheritance tax?

There is none!

What language do they speak in cyprus?

Greek is the population's mother tongue, but with the strong influences Britain has played in the island's history, English is widely spoken and understood. Knowledge of French, Russian and German is increasing in line with the island's tourist trade.

I have children – What are the cypriot schools like?

In addition to the public schools, private elementary and secondary schools for English, French, Russian and Italian speaking pupils are available.

Tertiary education is provided at the University of Cyprus, as well as at a number of private English language colleges that offer accredited undergraduate courses in various fields including business studies, marketing, economics, computer studies - and a whole host of other disciplines.

What happens with regular bill payments such as water and electricity?
 
As part of our total service you will be assigned your own after-sales consultant who will ensure all your services have been connected. All utility bills can be paid directly from your local Cypriot bank account. Normally a direct debit will be set up, so it's quite straightforward.
 
What other charges can i expect?

The annual immovable property tax imposed by the government is approximately €102.51 to €205.03 per year. The municipal authorities also levy an annual property tax of €34.17 to €51.26 per year and other authorities may also require €34.17 to €68.34 sewerage tax.

Common expenses are usually paid monthly or quarterly in advance. They vary from development to development and depend on the area and type of property. They cover an owner's share of the cost of cleaning and maintaining common areas and gardens, swimming pool expenses, electricity in common areas, management fees, rubbish collection and repairs. The estimated total is in the region of €256.29 to €512.58 per year.

Charges for utilities are payable to the respective authorities at regular intervals throughout the year. They are based strictly on the consumption of each unit. While the cost will vary, approximately €307.54 per year can be considered a rough guide.

The local municipal or other authorities are responsible for regular collection of household rubbish. Depending on the area of your property, the cost is in the range of €68.34 to €85.43 per year. It is also necessary to take out buildings and contents insurance on your property.

Who sets the price of the property?

If you are buying a Cyprus property on a new development, the price will have been set by the developer. Regardless of agent's commissions, you should still pay the same price whoever you purchase through … whether you go direct or through a third party.

Going through a company like K.Onisiforou Developers Cyprus has several advantages:

    * You will get to see a wide range of properties that suit your requirements
    * You have the benefit of our many years' experience, and fully staffed offices to support you in Cyprus
    * It will eliminate any possible misunderstandings
    * It helps takes away the stress and strain associated with house purchasing.

Resale properties are handled much the same way as at home … with a valuation taking place and the agent's fees agreed before the property is marketed.

When do I have to pay stamp duty and how much can I expect to pay?
 
Stamp duty is due at the time of signing the contract. This is levied at the rate of €2.56 per €1708.60 up to €170860.14 and thereafter at the rate of €3.41 per €1708.60. The purchase contract must be stamped within 30 days of its dated signature or a fine will be imposed.
 
Do I need permission to purchase a property in cyprus?

Currently, yes. Permission to purchase a property must be obtained from the Council of Ministers by written application. This must be submitted by the non-Cypriot purchaser after the agreement has been signed. However, the permission is granted more or less as a matter of course to all bona fide buyers. In the meantime purchasers may take possession of their property without restriction.

By law, a non-Cypriot in Cyprus is entitled to a residence permit but is not required to hold a permanent residence permit … the latter being easy to obtain once certain requirements are fulfilled. You need to submit an application and provide proof that you and your family are self supporting. The following documents must accompany your application:

• A copy of the sale/rental agreement
• Copies of pension/retirement income
• Any other document(s) relevant to income
• Three photos and passport(s).
  

There is a charge of around €256.29 for the permission to purchase.

The application for permanent residence may be submitted to the local immigration office in the area of residence.

Can I take my existing furniture out to cyprus?

The short answer is "yes". Should you be moving on a permanent basis, you may well want to take some or all of your existing furniture, as well as your prized possessions. After all, you may have spent a long time accumulating what you have and it will make the transition easier.

The best option is to use a property removal expert who will ensure all items are packed safely, fully insured whilst in their possession and transported to your new home with a minimum of fuss.

What about healthcare?

The healthcare in Cyprus is extremely efficient and available to all EU residents. As a British or Irish resident, you are entitled to get healthcare through the public system in countries of the European Union (EU), European Economic Area (EEA) or Switzerland if you become ill or injured while on a temporary stay there.

Until now, you needed an E form - such as the E111 or the E128 - to get such treatment. Now, these paper forms are being replaced by the European Health Insurance Card. One card is needed for each individual or member of the family. For more information, go to:

    * UK - www.dh.gov.uk
    * ROI - www.ehic.ie

Although there is no national health service as such in Cyprus, the cost of medical treatment in governmental hospitals is very low. Those wishing to consult medical experts privately will find a wide choice of competent doctors, specialists and surgeons practicing on the island. The minimum charge for a private consultation is approximately €17.08.

The standard of medical treatment provided to citizens is high and continuously improving. Additionally, a number of companies offer medical insurance schemes that cover excellent and immediate healthcare.

Diverse schemes are tailored to individual needs and budgets, and can cover hospitalisation at the hospital or clinic of your choice, outpatient consultations and drugs, and even nursing care at home.

Are there any tax advantages?

Non-Cypriot individuals residing in Cyprus pay income tax at a flat rate of just 5%. This applies to the amounts remitted to Cyprus from pensions or income from overseas investments. The first €3417.20 per annum are tax exempt, if you are retired.

Personal effects, household goods and furniture may be imported duty free by immigrant retirees, provided that they are for personal use and have been in use for some time (approximately one year). There is no duty on one car and retired couples benefit from the additional concession of two duty free cars.

If I am moving to Cyprus to live, will I be able to take my dog/cat with me?

Pets may be brought into the country provided a licence has been obtained in advance from the Department of Veterinary Services in Nicosia. A house quarantine period of six months may be imposed. For more information, please call:

• The Pets Travel Scheme in the UK on 08702 411710
• The Animal Health and Welfare Division in Ireland on 01 607 2827.
  

Is the crime rate high or low?
 
Cyprus enjoys a remarkably low crime rate - 1/6 of the European average. Another reason for its popularity with foreign buyers for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of and theft not commonplace.