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How challenging is the property acquisition procedure in Cyprus?

Immigrants can buy one home in Cyprus, and also are qualified to hold land estate, however there is an optimum limit ashore ownership of 3 donums (4,014 sq m). A license to register a property is required from the federal government, however can easily be gotten through an attorney. Nonetheless given that Cyprus ´ accession right into the EU on 01 May 2004, there have been plans to ´ de-restrict the housing/property field. The plans target to enable unencumbered property acquisition by 2011.

Prior to the EU negotiations, no immigrants could rent property. Also today, non-EU property owners can not rent out property.

After the offer is accepted, a small down payment is made which can be as low as CY ₤ 2,000. This down payment is binding, so there is no gazumping. The agreement is then formulated, and also on signing, the buyer has to pay 20% to 30% of the value of the property, the remainder being payable according to the contractual terms agreed. The contract should after that be deposited at the land computer system registry, within 2 months of finalizing.

TRANSFER TAX

PROPERTY VALUE , (€)TAX RATE
Up to €85,4303%
€85,430 – €170,8615%
Over €170,8618%

A non-Cypriot buyer has to after that make an application to the Council of Ministers to get immovable property – mainly a rule – consisting of financial institution referral, rap sheets, the size of the land, and also a statement that this is the only residence he will certainly keep in Cyprus. The procedure can take up to one year, there is meanwhile no constraint on using the property, and also in the unlikely event that approval is not approved, the purchaser can re-apply, as well as anyway has 17 years in which to sell the property. Nor does lack of approval influence inheritance legal rights.

 

Explanations to Purchase Costs Table

The round trip deal costs include all prices of acquiring and then re-selling a property – legal representatives ´ fees, notaries ´ costs, registration charges, taxes, representatives ´ charges, and so on.

Currency:
Currency exchange rate as of 16 Feb 2007: 1 EUR = 0.578449 CY ₤.

Transfer Tax:
The transfer tax is levied at modern rates. The transfer tax is based on the purchase price or market price of the property, as determined by the Land Computer system registry department. If the property remains in joint names, the property value is cut in half, leading to reduced transfer charges.
If the transfer of immovable property is subject to Value Added Tax (VAT), no transfer fees are payable.

Value Included Tax (BARREL).
Buyers of new real property are liable to pay Worth Added Tax (BARREL), which is levied on the acquisition rate or market price of the property. The typical VAT rate is 19%.

A reduced barrel rate of 5% may use on the acquisition and/or construction of residences of newbie purchasers, with area less than 250 sq. m. The reduced rate may additionally apply on the acquisition and/or construction of residences for usage as the long-term and key residence for the following 10 years.

Lawful Cost:
Provider of solicitors are not needed but highly advised. Legal fees are usually flexible, in between EUR850 as well as EUR1,730.

STAMP DUTY

PROPERTY VALUE , (€)TAX RATE
Up €5,0000%
€5,000 – €170,0001.50%
Over €170,0002% (capped at a maximum of €20,000)

Stamp Responsibility:
Stamp obligation is imposed on documents related to Czech Republic property. Stamp duty rates are levied at progressive rates, relying on the purchase cost of the property. Stamp task is covered at an optimum of EUR20,000.

Real Estate Agent ´ s Cost:. Real estate representatives usually bill 5% of the acquisition rate as their payment. By regulation, minimum agent ´ s fee is 3%.