Buying in Cyprus

Cyprus took the Euro on 1 January 2008 and the figures below have been converted from CY£s into Euros at the rate of CY£1 = €1.7086 which will explain why the figures are not as rounded as might be expected.

Legal Fees
Costs for a reputable solicitor experienced in property conveyancing in Pafos is approximately €2000 per contract of sale transaction, depending what is specifically involved. Don't be afraid to ask for a quote up front.

Stamp Duty
Stamp Duty is due at the same time as the Contract of Sale is signed, the duty must be paid and the contract stamped within 30 days of signature otherwise a fine will be imposed. Your solicitor will arrange payment and typically include the Stamp Duty within their final invoice to you. It is applied to the full Contract of Sale purchase price, levied on a simple sliding scale as below:

The first €170,860 is charged @ 0.15%
Over €170,860 is charged @ 0.2%

Transfer Fees
Upon transfer of the property and registration in the purchasers' names, the District Land Registry Office will charge Transfer Fees, which are calculated on a progressive sliding scale, on the market value of the property at the time of purchase, and are calculated as follows:

The first €85,430 is charged @ 3%
Between €85,431 and €170,860 is charged @ 5%
Over €170,860 is charged @ 8%

However the good news is that if a property is bought in joint names then each partner receives an equal allowance equating to  3% on the first €170,860 and 5% on the next €170,860  and 8% on the remaining balance.

The Transfer Fee is often deferred for sometime depending on how quickly the District Land Office can process the administration involved, a typical time period can be 3 or 4 years from project completion on a new build, but transfer is immediate on a resale property being sold with title deeds.

Immoveable Property Tax
Immoveable Property Tax is somewhat of a quirky legacy from the past, as the tax itself is based upon the value (like the old UK rateable value) of the property as at 1980, which obviously is considerably lower than current market values. Given that the first €170,860 (at 1980 valuations) is tax exempt so some properties are exempt from Immoveable Property Tax or face an inconsequential amount. It is charged annually on a sliding scale as below:

The first €170,860 is exempt
Between €170,861 and €427,150 is charged @ 0.25%
Between €427,151 and €854,300 is charged @ 0.35%
Over €854,300 is charged @ 0.40%

Insurance
Household insurance can be obtained for approximately €3.42 per €1,709 sum insured per year. Medical and Health insurance is also available at extremely competitive prices.

LOCATION - LOCATION - LOCATION
If you have not been to Cyprus before and you are considering buying a property on the island, isn’t it sensible to first investigate to find the area in which you prefer to make your investment?  Think how confused someone might be if they came to the town or village where you live, never having been to your country before, on a mission to buy a property in just a few days – that is just what many people do when they come to Cyprus!

It is worth getting to know Cyprus at least a little before taking the giant leap of actually ‘buying’ a property.  I do try as far as possible to help my clients to focus on ‘where we are and how we arrived there’ when showing properties in order that the location is noted as well as the surroundings.

Imagine sitting in a spacious walled courtyard garden under a fig tree with your friends and family, in the cool evening air with pretty lights strung around, wind-chimes tinkling in the breeze and the pool shimmering from water cascading over a rock pool into it, sipping your favourite cool drinks and enjoying a typical Cypriot alfresco meze.  It sounds idyllic doesn’t it but such a dream is not the expensive reality you might presume.

There are still many old stone houses lying derelict in and around the villages of Cyprus, just begging to be renovated and made beautiful once more and they do make stunning properties once they have been lovingly restored.  The process is not so difficult, it can be time consuming but the benefits are many, not forgetting profitable, since the Cyprus Government offer incentives in the form of rebates to people who restore these crumbling properties of up to 40% of the cost, within parameters, once the property has been completed using traditional methods and materials.  Many of these old stone houses are in the villages, where the build density is high, thus enabling an extra floor and a roof garden to be added very easily.  A small stone house can be restored into a substantially large residence in numerous cases.  When land is sold there is sometimes the remains of an old stone house ‘thrown in’ so to speak, it may only be a part of a wall or a pile of stones but if it was once a house it can be a renovation project.

When the right property is found the procedure can be dealt with by instructing a lawyer, of course, an architect and a constructor who both should specialise in the design and build of traditional stone houses.  The lawyer will check the title and start the procedure to transfer it over to your name and deal with the legal side of everything, leaving you to start planning with your architect.  Your architect will spend time with you showing previous designs to feed you ideas and putting together your needs and thoughts to come up with a custom design of your very own; plans will be submitted to the planning authority by the architect and, once finalised, the constructor will become involved in the project.  When the project is finished the architect will submit the relevant papers on your behalf to the Government for the maximum rebate of your costs.

At the end of the day you could end up with a truly magnificent traditional custom built property for no more than the cost of an ordinary villa.

If this is something that interests you then Cerise Consulting Limited can help you in every aspect on request.

Renovated Stone House	Inside with door to courtyard	Inside to stone staircase
Courtyard Garden with Pool	Another Renovation	Prime Property for Renovation