About Cyprus
Geography and population
Cyprus, an extreme south-eastern European country, is the third largest island situated in the north eastern corner of the Mediterranean Sea at the crossroads of Europe, Asia and Africa. This strategic location of the island has played an important role in its continuing development into a financial and tourist centre with total area of 9,251 sq.km. The capital of the island is Nicosia with a population of 230,000. UP
Culture
As an island and being at the "crossroads of Europe", and the "stepping stone" to the Middle East it has one of the oldest histories of the world, 9.000 years! Cyprus is famous for very rich cultural heritage. Archaeological sites and historic monuments of Cyprus are well known worldwide. UP
Languages
The local language is Greek, but most of the local people speak English fluently. Cyprus is basically a Christian orthodox country, but Anglican and Catholic services are held on a regular basis in all towns. UP
Climate
The nature of Cyprus is unique. It combines crystal clear sea and beautiful, golden sandy beaches stretching for mile and mile along coast line of the island and the outstanding landscape, stunning gorges and pleasant nature trails. The sun shines for approximately 340 days of the year. Cyprus is one of the three countries in the world where you can snow ski and swim in the same day.
Three of the five main towns on Cyprus lie along the south coast: Limassol is the islands largest seaside resort, and the second largest town of Cyprus with a population of 150.000, Larnaca (pop.65.000) and Paphos (pop. 35.000). Limassol is modern and prosperous town, with predominantly new buildings, beautiful hotels with large gardens and excellent swimming pools, recently renovated seafront promenade. It is known for its loving reputation and people. UP
Health care
Health facilities are generally of a high-quality standard. The latest technology and operating techniques are standard, with heart bypass surgery and kidney transplantation now routine in hospitals. The emergency departments of all hospitals are manned with English-speaking personnel. Emergency medical treatment, administered in the Accident and Emergency department, is free to international tourists. UP
European Community
Cyprus is a member of the EU (May 2004). UP
Car driving
In Cyprus traffic circulates on the left, the traffic signs are international and seat belts must be worn. Visitors can bring their cars to Cyprus for a period of three months provided the car has a valid registration in its country. UP
Education
Cyprus has a well-developed system of primary and secondary education. In addition to the local Greek schools there are reputable both junior and secondary private English and international schools which offer diplomas equivalent to GCE's for entry into European universities. There are also a number of English speaking private colleges of high standards. These colleges are related to UK and USA universities and graduates of 2-3 years courses in these colleges can easily enroll with the UK and USA related universities. UP
Telecommunications
Regarding telecommunications, Cyprus among the most developed countries in the world with an automatic telephone connection with over 200 countries. The international and local calls are the cheapest in Europe. UP
Standard and cost of living
Cyprus enjoys a high, European standard of living while it remains an inexpensive country. The cost of living is lower than in Europe. The low crime-rate, when compared to the average in Europe is almost non-existent. The Cypriots are extremely hospitable and welcoming, and will do their utmost to ensure that you get the most of your stay on the island. UP
How to purchase a home in Cyprus
As the law stands now, EU nationals who work in Cyprus still need a permit to own any kind of immovable property. EU nationals who do not live or work in Cyprus need a permit to own a house or apartment, but they do not need permit to own land. EU nationals and non-EU citizens are entitled to freehold ownership of one property or piece of land up to 4,000 sq.meters. UP
Legal and financial system
The legal system in Cyprus is largely based on the British equivalent and safeguards the purchaser's rights in many ways. The process of buying property in Cyprus is very simple and quick compared to other countries. For the purchaser's protection, once the sales agreement has been signed and a deposit paid, the Land Registry in Cyprus provides a simple and effective legal instrument called the "specific performance" This procedure protects the purchaser's ownership rights until the title deeds are issued and transferred to their name. The contract in the hands of the Land Registry cannot be withdrawn by anyone and therefore the property cannot be leased, sold, transferred or mortgaged. This status can only be altered by the purchaser himself. There must be proof that the purchase consideration is from foreign currency. The official currency in Cyprus is Cyprus Pound. UP
Stamp duty
After a contract agreement is signed, stamp duty must be paid within one month of the date of contract signing to the land registry in the district of your property location. The amount is payable by the purchaser to the tax authorities. UP
| Purchase Price in CYP Stamp Duty in % | |
| Up to 100,000 | 0.15 |
| Over 100,000 | 0,20 |
Transfer fees
To obtain a title deed, transfer of ownership must be made to the Cyprus Land Registry Office. Transfers fees must be paid only once by the purchaser on the property's market value at the date of purchase. UP
| Property Value CYP | Transfer Fee % | Example: For a CYP 300,000 property, transfers Fees are calculated as follows: |
| Up to 50,000 | 3% | First 50,000 at 3%=1.500 |
| 50,001-100.000 | 5% | 50,001-100,000 at 5%=2.500 |
| Over 100,000 | 8% | 100,001-300,000 at 8%=16.000 |
| CYP 20.000 |
Immovable property tax
A very low annual immovable property tax is calculated according to the property's market value. The stated rates for the Immovable property tax are applicable only after separate title deeds are transferred onto the names of the purchasers through The lands Departments, and not before. The registered owner of the land reserves all rights. UP
| Up to 100,000 | Nil |
| 100,001-250,000 | 0.25% |
| 250,001-500,000 | 0.35% |
| Over 500,000 | 0.40% |
Loans
All local financial institutions offer a selection of attractive financing schemes. Cyprus' commercial banks also offer a variety of loans in Cyprus Pounds or foreign currency. UP
Local authority tax and rates
A very low annual amount based on the property size must be paid to cover the cost of garbage disposal, street lighting, sewerage etc. Electricity, telephone and water are payable individually in relation to consumption reading. UP
Inheritance tax
Inheritance Tax has been abolished with effect 1 January 2000, and is no longer imposed. UP
Capital gains tax
Capital Gains Tax is levied at 20% on gains arising from the disposal of the property, however, for the foreign owned property that is sold. The first CYP 10,000 - CYP 50,000 in a private residence sale I exempt and there is also an indexation allowance. UP
Tax advantages
Cyprus is the least taxed country amongst the EU members and one of the lowest taxed countries in the world. If you are a pensioner and become a resident in Cyprus you can benefit from Double Tax treaties amongst Cyprus and 40 other countries. You can also get your pension gross and pay only 5% tax in Cyprus after the first CYP 5.000. UP
