Cyprus Mortgage Information and Tax Matters
Mortgages in Cyprus, Stamp Duty,
Transfer Taxes, Mortgages Schemes and other related
financial and tax matters.
We know this is the boring bit, but... this information
is important.
We have tried therefore, to provide a quick version of
this exciting topic for your entertainment.
Below you
will find, a quick guide to buying your property in Cyprus
and a section on the ongoing expenses your property will
incur.
The
Right to Buy Property
Cypriot nationals and Cyprus residents holding an
E.U. member state passport may buy any immovable property
freely.
Currently, non-residents (of Cyprus) from E.U. member states require permission
from the Council of Ministers to purchase residential property. Once permission
has been obtained, they may purchase:
One apartment, house or villa or, a house on a building
site not exceeding 4012.5 sq. metres or a piece of land
up to 4012.5 sq metres for the purpose of building a property within a reasonable
time.
Property acquisition laws started to be revised
when Cyprus joined the European Union at the beginning
of May 2004. In accordance with E.U. directions, all
restrictions of real estate purchases will be lifted.
E.U. citizens may freely purchase property just as
they would in their home country.
Cyprus Mortgage Information - A look at what is available
Ordinarily, Cyprus Mortgages are available up to 70% in most cases, 80% in
some, with repayment periods of up to thirty years. |
More
information may be found in the following sections
of our site:
However, despite the fact that we have tried to give as much Cyprus
Mortgage Information as possible, never lose sight of the fact that
you should always seek legal and financial advice in any real estate
purchase. We would be very pleased to recommend a reputable International
Financial Services company or reliable lawyers to you. |
SPECIAL RATES AND TERMS ARE AVAILABLE
As one of the leading property specialists in the Republic of Cyprus however, we are proud to present to you a specially negotiated range of Buy to Let Mortgages, with only 15% deposit, nothing to pay for 3 years and repayment terms of up to 40 years.
If required, we are able to introduce sources able to obtain pre-approval
for financing a property in Cyprus. Once a home
has been found, they can provide acceptance in principle
so that clients can proceed to purchase, confident that
the required mortgage can be secured.
Cyprus lenders are offering increasingly sophisticated products
and services. Among the recently introduced improvements are discounted
and fixed rates; flexible mortgage schemes with longer terms of
up to 30 years; loan-to-values of up to 80%; and remortgage and
equity release facilities.
If the title deeds are not yet available, loan security is provided
by a bank guarantee fee of 1.8% p.a. of the mortgage amount until
the title deeds are issued. This assures your financial security.
Financing a Property
Developers offer various long term payment schemes to assist in
purchasing your property.
A 30% deposit (occasionally lower), less your initial
reservation deposit, is due on contract signing. The
balance being payable at different stages during construction
until building completion.
QUICK GUIDE TO BUYING PROPERTY IN CYPRUS
The Property Reservation Deposit
Normally a deposit of between C£1,000.00 and C£3,000.00
is required to reserve a property and fix the price. This is often
non-refundable.
Legal Costs
Property legal fees tend to be applied on a sliding scale starting
from as low as C£500.00 increasing at approximately C£500.00
per CY100,000 of property value.
Cyprus Stamp Duty
Permission to buy property must be applied for in writing from
the Cypriot Council of Ministers. This process is little more than
a formality, since it is granted to all genuine buyers more or less
automatically.
Stamp Duty is payable at the time of signing the contracts.
It is levied at C£1.50 per C£1000.00 for property values
of up toC£100,000.
The value of any property above C£100,000 is charged at C£2.00
per C£1000.00 plus a charge of C£1.00 for depositing
the contracts.
Purchase contracts must be stamped within 30 days of their signature
dates, or a fine will be imposed.
Title Deeds
It is a simple procedure through the Cyprus Land Registry Office,
either by the buyer in person or by appointing a third party with
power of attorney to transfer the ownership from vendor to purchaser.
Title deeds are issued for all properties by the Cyprus Land Registry
Department. This can take up to a couple of years after the project
is completed. For properties that are under construction, there
is no title deed. Therefore the buyer has to deposit the contract
of sale in the Land Registry Office to safeguard ownership.
When the title deeds are issued, they are in the name of the buyer
and are filed in confidential government archives and are never
made public or ever published.In order to transfer freehold ownership
to the purchaser, real estate transfer fees must be paid, as detailed
below.
In order to transfer ownership into your name, real estate transfer
tax fees are applicable and are payable on completion of the purchase.
The title deeds will then be issued.
Fee rates payable are as follows: Property value up to C£50.000
is 3%,C£50.001 to C£100.000 is 5%, above C£100.000
is 8%.
Click to return to top
Click here for more information about Cyprus VAT
Aphrodite Property Sales - Your number one Cyprus Property Sales
Specialist
On a slightly different note; the vast selection of homes on offer in the Republic of Cyprus, coupled with the island's fine climate, easy-going lifestyle and many outstanding beaches, have prompted a large number of British and European homebuyers to visit its shores in search of that dream Cyprus property for Sale. Low mortgage rates, a high investment potential and the increasingly favourable rates of exchange of Sterling and the Euro against the Cyprus pound, have further served to convince prospective buyers that Aphrodite's Isle presents an ideal location, not only for holiday homes, but high-yield investments too.
|
Search
for Properties 
