Looking at Cyprus property for sale can be simple if the purchaser uses an independent advocate that can ensure all legalities are taken care of on your behalf. There are many companies that act as independent advocates, so usually there are very few hiccups.
Step by Step Guide With In-depth Explanations To Buying a Cyprus Property For Sale:
• If the purchaser resides in Cyprus for at least 6 months and 1 day, it is possible to be elected to have pension, investment income sent directly to an external Cypriot account. Since the transaction takes place outside of Cyprus, you will be only taxed at 5%
• If the price, payment terms etc are agreed and the contract is signed, the contract for the property will need to be stamped by the advocates within a 30 day limit, otherwise fines can be imposed. (Note: Stamp duty levied at £1.50 per £1000 spent up to £100,000 and thereafter it is £2.00 per £1000)
• The advocate will then encumber the property on behalf of the purchaser, to prevent the vendor from alienating his or herself from the conveyance procedure
• Any payment made for the property should be done so in foreign funds emanating from abroad. (Note: The Law states the equivalent of the full amount paid for the property in foreign funds and any increase in the value of the property may be transferred abroad at any time if a re-sale of the property is required. In reference to capital gains tax the first £10,000 will be tax exempt with a rate charged on the remaining gain at 20% )
• The conveyance procedure involves the district land registry being paid a transfer fee by the purchaser. The transfer fee is based on the market value of the property purchased, calculated at the rate of 3% for the first £50,000, 8% from £50,000 to £100,000, and 8% for any amounts over the first £100,000
• This is the stage where the advocate will register the property into the purchaser’s name
• What does it mean now that I own the property in Cyprus?… Once you own the property the advocate is able to make an appointment with the immigration authority so you can get temporary residence permit. However, this is providing: your financial standing is sound, provisions have been made for any pensions forecast and bank details.
• UK nationals are permitted to work in Cyprus providing they have a work permit
• A word of caution: the property purchaser should arrange for the advocate to draw up a will. This is because inheritance tax is not imposed on the property paid for by foreign funds. If you do not, or the will is left abroad – this would not legally cover the property you have bought. It is wiser to have your advocate to draw up a Cypriot will. Otherwise it would be difficult for the purchaser’s advocate to carry forth any wishes as to who would inherit the property, or to even find the legal heirs