Purchasing Process Print E-mail

See generic Purchasing Process in addition to this section

The legal system in Cyprus is based on the English legal system, as is the Land Registry. You should also use a solicitor in the same way you would in the UK.

You can reserve a property by paying a deposit of CY£1000 (about £1200) which is non refundable.

At this time a preliminary sales agreement will need to be signed within 30 days, which is a formal commitment to purchase the selected property. This is usually 20-30% for a new-build home (10% for a resale)

Final Contract of sale. The Cypriot legal system is British-based. This stage formally registers the transfer of ownership with the land registry. Contracts will be prepared in English. 

Mortgages

There are three ways to finance a property:

  • Mortgage in UK

  • Outright payment

  • Loan in Cyprus, which can be given for up to 80% of the value of property over 15-25 years. Obtaining a Cypriot loan is becoming easier and loan terms and periods have recently started to become more favourable.

Property purchase costs

It would be wise to allow for about 6-7% of the property price to cover purchase costs:

  • Legal, allow for 1% of property price

  • Stamp duty at 0.15% of the property price up to CY£100,000 (c.£120,000 sterling) and 0.20% for every additional CY£1,000 (c. £1200 sterling)

  • Survey costs are optional

  • Government taxes – application to the Council of Ministers to register the purchase CY£150 (c. £180)

  • Transfer fees on the purchase of a new or resale property are: 3% on the 1st CY£50,000 (c. £60k sterling), 5% on CY£50,000-CY£100,000 (c. £60-120k sterling) and 8% above this.

  • Mortgage fees if applicable

We can assist with recommendations on the following:

  • Financial and mortgage advisers

  • Banks

  • Independent English-speaking solicitors ( fees normally 1.5% of purchase price)

  • Furniture suppliers , department stores etc.

Useful Information

Water - There is a standard quarterly charge of between CYP 7.00 and 8.00, plus consumption costs on a sliding scale based on usage. Annual cost is normally around CY£100 dependent on actual usage.

Electricity - There is a standing monthly charge of between CYP 2.00 and 3.00, plus 6.4 cents per kW/hr on consumption during peak hours (07.00 – 23.00) and 5.5 cents per kW/hr during off-peak hours. No plug adaptors are required for electrical appliances from the UK, as the plugs are the same, 3 pin, 240 volts AC. Annual cost is normally around CY£200 dependent on actual usage.

Telephone - The standard charge for a landline is CYP 5.00 per month, plus calls which are lower than those in the UK. Mobiles from the UK work perfectly in Cyprus.

Living in Cyprus

Residence permit – These are acquired through the Ministry of Interior and should not be a problem provided you have no criminal record and reasonable financial status. If you are living in Cyprus for less than 183 day then you will not need a residents permit.

Working – Please speak to the Immigration office but EU citizens are allowed to work and set up their own businesses as many British have done in recent years. If you spend over 183 days per year in Cyprus, you will be considered a permanent resident and as such must pay tax on any income from Cypriot businesses, employment income from other countries. Tax varies from 20-30% depending on income.

Medical services - Public and private health care in Cyprus is of a high standard and available to everybody. All Cypriot doctors have qualified abroad, the majority in the UK, US or Germany, and speak fluent English. Paphos General Hospital is equipped with the latest medical technology and surgical apparatus.

A hospital visit costs less than CYP 7.00.
A prescription costs less than CYP 4.00.
A clinic visit costs around CYP 10.00 to 20.00.
Private health insurance starts from around CYP 400.00 per year, depending upon the cover required.

Education – Children can continue their education in Cyprus, either through the state system or reasonably priced private schools. Children who do not have Greek as their first language will be given special tuition to accelerate their learning. Sixth form colleges are available and there is also a university in Nicosia.

Preferential Tax Privileges
In Cyprus, personal effects, household goods and furniture can be imported duty free by immigrant retirees. In additional there is no duty on a car with retirees entitled to two duty free cars.