villa, property, bedroom-4555824.jpg

How hard is the property purchase process in Cyprus?

A permit to sign up a property is required from the federal government, however can conveniently be obtained with a lawyer. The strategies target to enable unencumbered property purchase by 2011.

Prior to the EU negotiations, no foreigners could lease property. Also today, non-EU property owners can not lease property.

The agreement is then drawn up, as well as on finalizing, the buyer has to pay 20% to 30% of the value of the property, the rest being payable according to the contractual terms concurred. The contract should then be deposited at the land computer system registry, within 2 months of signing.

A non-Cypriot buyer must then make an application to the Council of Ministers to get immovable property – mostly a formality – including financial institution reference, rap sheets, the dimension of the land, and a statement that this is the only home he will keep in Cyprus. The treatment can take up to one year, there is at the same time no limitation on making use of the property, as well as in the not likely event that authorization is not given, the customer can re-apply, and also anyway has 17 years in which to sell the property. Neither does lack of authorization impact inheritance legal rights.

Footnotes to Transaction Expenses Table

The round trip purchase costs include all expenses of purchasing and afterwards re-selling a property – attorneys ´ costs, notaries ´ costs, enrollment costs, tax obligations, agents ´ costs, etc.

Currency:

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

Transfer Tax:

The transfer tax obligation is imposed at dynamic rates. The transfer tax is based upon the purchase price or market price of the property, as determined by the Land Pc registry division. If the property remains in joint names, the property worth is cut in half, causing lower transfer charges.

If the transfer of unmovable property is subject to Worth Added Tax (VAT), no transfer charges are payable.

VAT

Buyers of new real estate are liable to pay Value Added Tax obligation (BARREL), which is levied on the purchase price or market price of the property. The basic VAT rate is 19%.

A decreased barrel price of 5% might apply on the procurement and/or construction of houses of newbie buyers, with location less than 250 sq. m. The minimized price might also apply on the purchase and/or building of houses for usage as the permanent as well as main house for the next 10 years.

Legal Charge:

Provider of lawyers are not required but extremely suggested. Legal fees are typically flexible, in between EUR850 and also EUR1,730.

Mark Task:

Stamp responsibility is levied on records associated with Czech Republic property. Stamp duty prices are levied at dynamic rates, relying on the purchase rate of the property. Stamp responsibility is capped at an optimum of EUR20,000.

Real Estate Agent ´ s Charge:

Real estate representatives usually bill 5% of the purchase cost as their commission. By legislation, minimum agent ´ s cost is 3%.