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New Cyprus Property

Questions: These questions were kindly answered by Mrs Areti Charidemou who is a practising lawyer in Cyprus. She would welcome any enquiries from prospective purchasers. See her details  It is very important to use the sevices of a regulated and licensed estate agent, we know that NewCyprusproperty use only licensed agents.

Q. We are thinking of retiring to southern Cyprus in the next few years but we are a bit worried as we do not speak Greek. Is it going to be difficult if we can only speak a few words?  I would also like some information about the crime rate and cost of living, as these are the main reasons we are looking to move. 

A. There is no need in Cyprus to speak Greek as everybody speaks a little bit of English. The crime rate is very low in Cyprus. Please find below an indication of costs after you buy property in Cyprus.

  

Electricity, depending on consumption

Cy.£ 70.00 every two months

Water, depending on consumption

Cy.£30.00 every two months

Municipal rates, depending on location and property

 

Cy.£50 to Cy.£150 per annum

Sewerage, if applicable, as sewerage is not available throughout Cyprus

Cy.£50 per annum

Communal costs, depending on size of apartment and communal area

Cy.£100 – Cy.£200 per annum

Insurance, based on the property.

Cy.£200 per annum. Approx

 

Q. I have some investment properties in the UK but prices are no longer rising as much as they were and so I was wondering if there were any similar opportunities in Cyprus? Which areas would you suggest and how do you see prices changing in the next few years? 

 

A. I believe Limassol is the city with most potential as this is a big city with more activities than other cities. The potential for growth is higher. I also believe that prices will continue to increase for prime locations. 

 

Q. We have been looking at buying an off-plan property in Cyprus, but would like to know what risks are involved? 

 

A. When someone buys off-plan must make sure that the developer will perform. Please see below some information when buy off-plan

 

 In Cyprus, there are  a lot of developers within a relatively small area. When buying an uncompleted property off plan, i.e. a property still to be built or which is partly built only, payment is made in stages.

 

Stage payments vary but in Cyprus you are usually expected to pay CY£1,000 on agreement as a reservation fee. The rest of the payments are subject to agreement, but generally you will have to pay a holding deposit of CY£1,000, sometimes more for larger properties. Within one month of the agreement, you pay 30 per cent of the total value of the property, followed by another 30 per cent half way between agreement and completion and finally, the balance on completion. Sometimes the final two payments are made according to the progress of the work.  The stage payments are negotiable

 

The contract for an off-plan property contains the timetable for the property’s completion; stage payment dates; the completion date and penalties for non-completion; guarantees for building work and a copy of the plans and drawings. The completion of each stage should be certified in writing by the supervising engineer or architect. By paying in stages you minimise your exposure as you don’t pay more that the works done.  The most important in order to protect your interest is to register your contract with the Lands Office. 

 

When you buy off-plan you have the opportunity to make changes and build the house how you want it and also you buy it at a better price. 

 

Q. After buying a property in Cyprus are there any yearly taxes to pay? 

 

A. Please see answer to first question. Also you may liable to pay immovable property tax. Please see general information below.

  

The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as at 1 January 1980. The tax is imposed on the value of the whole of the immovable property someone owns, so a Purchaser may have to pay immovable property tax prior to the transfer of the property to his name, which can be claimed back with the actual transfer of title deed to his name.

 

Market Value Cy.£

Annual Tax Cy.£ per thousand

Up to £100,000

Zero

£100,001 - £250,000

£2.5

£250,001 - £500,000

£3.5

Over £500,000

£4.00