| 1. Are
there any restrictions on an overseas company or business
buying commercial property? |
Currently there are restrictions
so that foreign individuals (not of Cypriot origin)
or companies can only buy apartments, houses or small
building plots. Offshore companies may also acquire
premises for their business or residence for their employees,
provided the property is registered in the employee’s
name. These restrictions will cease for EU companies
or businesses when Cyprus joins the EU |
| 2. Is
land/property generally ‘registered’ so
that the title/ownership is guaranteed? |
Yes |
| 3. What
are the basic requirements/procedures? |
The purchaser must file
an application to the Minister’s Council or to
the local District Officer; application to the Central
Bank; application for transfer of ownership at the District
Land Registry. Non-aliens go to the land registry and
transfer the property to their name. If there are no
title deeds then the contract is deposited with the
Land Registry creating a charge on the property until
the deeds are issued. |
| 4. On
average, how long does the process take? |
If the property has no
deed it usually takes about 2-3 years for the deed to
be issued, otherwise about 1 month. |
| 5. What
searches are advisable? |
Title deeds and the sheet/plan/plot
of the Land Registry plans; planning matters (of the
property and adjacent zones, e.g your plot may be within
an agricultural area or close to farming or agricultural
zone that could be a nuisance). |
| 6. What
are estimated disbursement costs? |
Estate agent commission
(usually 3% to 5% the purchase or sale price); legal
fees (regulated by the Bar Council) on a sliding scale
according to the value of the transaction. |
| 7. What
are the local and/or national tax considerations in
the country of purchase? |
Immovable Property Tax
(0-4%); transfer fees (3-8%); Stamp Duty (at the rate
of 1.5 CYP(2.5€) per thousand of the value up to
100,000 CYP (167,000€), above this -2.0 CYP (3€)
per thousand. The documents should be stamped within
2 months after their signing to avoid penalties; income
tax and capital gains tax (20%) |
| 8. What
other annual local charges are obligatory? |
Business rates- 10% of
value; municipal levy- 0.25CYP (0.4€) per ‘000;
urban property tax – 8 -15 CYP (13€ -25€)
per ‘000; ‘Betterment’ charge –
local Council 15 CYP (25€) per thousand. |
| 9. Are
there any other issues to consider? |
The effect of the Euro
on property transactions; parity with other states;
effect on prices if UK join EMU |
