Why should someone buy through AFRICANOS REAL ESTATE?
AFRICANOS REAL ESTATE with experience in property since 1981. It has offices in all the towns and its experience personnel will offer you all the information for your acquisition. They will guide you through all the necessary steps required and will suggest safeguards from possible pitfalls in getting the best property for your needs at a reasonable price.
Our wide range of associates in Cyprus and abroad put us in a most suitable position to offer the wildest possible range of properties. Listing in our website is free of charge. Even if we not have in our listing the property that you need should you give us information on your requirements and an opportunity to search, we will do our best to find requested property. A strong marketing team which exhibits properties world wide, keeping in touch with our clients with information and assistance.
Our professional staff will give you the necessary details and other guidelines for buying safely, property in Cyprus . Our Office will arrange all the details with the developer/seller, negotiate on you part to obtain the best price and introduce you to a solicitor who will assist in all the legal work necessary, including opening a bank account and other financial details.
Buying a property in Cyprus is quite easy. As a non-Cypriot you are entitled to purchase FREEHOLD for your personal use:
• An apartment or a house • A villa o a building site not exceeding 4.000 esq. • A piece of land not exceeding 4000 esq. for the purpose of erecting a house within a reasonable time period. • Offshore Business Units can buy/build unlimited office/work space. • A second home maybe permitted depending on the type (e.g., a holiday home in addition to a permanent home in the city.) • Acquisition of Leases having a term in excess of 33 years duration, are treated similarly in Real Estate as a freehold in relation to the limitations. • Acquisition in shares other than between husband and wife is not permitted.
Properties have title deeds. Title deeds are issued by the Land registry department, of the Cyprus Government, a few years after completion of the project. Individual houses follow the same procedure. Upon approval by the Council of Ministers of the application and confirmation by the Central Bank that the purchase was with foreign funds, then the transfer of deeds can take place within a few hours.
All the main banks in Cyprus offer loans for the purchase of property in foreign currency. If you acquire through a Developer he usually has prearranged loan facilities, which can be explained to you when interest is shown for the purchase of property.
Normally a deposit of 30% can facilitate a loan on the balance -70%-.
Interest rates vary but as a guideline you can expect, the base rate -libor- +2.0%. Repayment period can be up to 15 years.
What is required for the transfer of property and what are the fees payable?
The following documents are required to be submitted in order for property to be transferred to your name as a purchaser:
• Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported in to Cyprus . • The sale contract. • The Ministerial Council's permission for the purchased property. • The property's title deeds, if available. • Confirmation that all taxes for the purchased property ( sewerage, immovable property, town taxes etc) have been paid.
Transfer fees are paid on the value that the Land Registry department determines that it is the Open Market Value of the property on the day of the original transaction/sales contract.
Transfer rates are as follows:
Property Transfer Accumulated
Transfer fee £
Up to 50.000
100.000 and over
A Power of Attorney can be issued to a third party to attend and conclude the transfer on the buyer's behalf.
here is a transfer fee advantage if the property is registered in the name of the two spouses (husband + wife) as the total purchase price is divided by two, thus lowering the rate of the transfer fee.
Although we recommend seeing a solicitor, you may find that is not necessarily required. If you buy through a reputable developer there are printed ready contracts. Should you wish to use a solicitor to check the contract and examine the property's date, any impediments etc an average fee is £400-£600.
For people who have purchased property, is residential permit easily available?
Temporary Permit: The requirements for this permit is the production of a sales agreement and a Cypriot Bank Account. The residential permit can be from 1 year to 4 years
Permanent Permit: In addition to be above the applicant must establish proof of an annual income of £10.000 per annum for a couple.
After April 2004, as Cyprus becomes a member of the EU, the procedural restrictions on the property purchase on EU members will be lifted.
All restrictions on property on EU members will be lifted April 2009. However as from April 2004 EU citizens will not require either a residential or a working permit. This development is expected to cause an increase, in demand and property prices in Cyprus .
The after sales service department of AFRICANOS REAL ESTATE provide assistance to our clients for the following services:
. Water-Electricity-Telephone . Purchase of household appliances and furniture . Insurance policies for the house and its contents . Medical Insurance . Property Management . Cleaning, gardening and pool maintenance.
In case of Multi ownership projects whereby a series of common use services are provided, charges vary from apartment to villa according to the quantity/quality of services available and the covered area of the property. Changes are allocated according the covered area of the property.Charges vary, for apartments from CY£150-CY£250 p.a and houses with common use facilities from CY£250-CY£350 p.a.
What taxes are payable on property (Depositing of the Sales Contract)?
1. Transfer fees: see transfer of property ( one-off payment)
2. Immovable property tax. This is an annual tax which is paid on the value of the property, ( on the market value as at 1/1/1980 ) and is a fixed percentage per thousand:
[a] Up to £100.000
[d] £500.001 and over
3. Fees for the deposit of a sales contract in the Land registry: The deposit of the sales contract is advisable in order for the purchaser to exercise the defense of specific performance against the developer/seller. The purchaser has the right to deposit the sales contract within 60 days after signing of the contract. However the sales contract must be deposited and stamped within 30 days after signing. After this period a penalty is imposed. The fees are 1.5/thousand for values there after.
4. Capital gains tax: The difference between the purchase price, and other costs incurred, such as inflation, interest costs, improvements etc, and the sales price is liable to the capital gains tax of 20%. The first £10.000 of the difference is exempt. In case of a permanent resident the amount is increased of £50.000 per year.
5. Other small annual taxes are the sewerage fees and garbage collection fees, paid on a yearly basis. These range from CY£60-CY£80 p.a.
The medical profession in Cyprus is of high standard the majority of doctors having been trained in Europe ( UK mainly) and the USA . Medical care is inexpensive. A visit to the doctor costs £15-£25 and X-rays £20-£25.
Medical care through private insurance is available starting from £142.-perannumm.
Inheritance tax has been abolished since 1/1/2000 . Permanent residents domiciled in Cyprus are exempt from Estate duty on worldwide assets. People with worldwide assets and or tax inheritance problems can find that Cyprus , most attractive on this benefit alone.
AFRICANOS REAL ESTATE have properties for sale from as low as £28.000 depending on location, size, type of property etc. Through its Offices in all towns including the mountain resorts, properties of all nature, age, quality are available. Custom built properties can be arranged upon request. Projects under construction in all areas of Cyprus including beach properties are available. A large amount of resale's are also available.
Pensioners who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% for amounts exceeding £2.000 annually. No tax is paid in the country of origin if a double taxation treated exists. As for all Cypriot residents annual income up to £9.000 for 2003 and £10.000 for 2004 is tax exempt.
Double taxation treaties are made in order to avoid paying income tax in two countries. This gives the option to the citizen of the countries to take advantage of the low rate of tax in Cyprus . Countries that Cyprus has double taxation treaties are:
United Kingdom - United States - Austria - Bulgaria - Canada - China - Chech Republic - Denmark - Egypt - France - Germany - Greec- Hungary - India - Kuwait - Malta - Norway - Poland - Romania - Russia - ( including Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine) - Slovakia - South Africa - Sweden - Syria - Yugoslavia ( Serbia - Montenegro ).