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Q. What is the cost of living in Cyprus?
Compared to many other European destinations, Cyprus has a relatively low cost of living. On average, the annual charge for four adults living in a three bedroom house is as follows: Gas –cy£12.00, water - £108.00 and electricity- cy£360.00
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Q. Can I work in Cyprus once I have moved there?
Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are required to have a work permit. This restriction has now been lifted for all EU members.
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Q. How does the medical care system operate?
The medical care system in Cyprus is very inexpensive. A doctor's visit costs about cy£10 and X-rays about cy£15. Inexpensive Private Medical Insurance is also available. Cyprus residents, whether Cypriots or not, can have a private medical insurance starting from cy£130 pa.
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Q. Is the British Pension subject to Tax payment?
Yes it is! According to the Cypriot tax system you are obliged to declare your income from pension. Individual non-Cypriot residents are taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus. In some circumstances, exemptions totalling up to cy£4,000 per individual or cy£8,000 per married couple apply.
Q. What about Inheritance Tax?
There is none.
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Q. What other tax advantages are there?
Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries.
In practice, the tax levied by one country is credited against the tax levied in the taxpayer’s country of residence. Where different tax rates apply, the tax payer will ultimately not pay more than the higher of the two rates of the respectively countries. Immigrant retirees may import personal effects, household goods and furniture duty free.
This is provided that they are for personal use and have been in use for at least one year. There is no duty on one car and retired couples benefit from the additional concession of two duty free cars.
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Q. What are the driving regulations in Cyprus?
Visitors in Cyprus may drive using a valid International Driving Licence or their National Driving Licence, provided it is valid for the class of vehicle they want to drive. If they wish to get a Cyprus driving licence, then they must convert their national licence to a Cypriot one or take the driving test. In any event, the Cyprus licence will cost CY35 pounds for a lifetime.
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Q. How do I get the Title Deeds to my property?
Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the land registry office. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within 60 days from the contract date. When issued, the title deed will be registered in the name of the buyer and will be recorded in the confidential government archives.
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Q. Can I sell the property easily? Will I be able to take the proceeds of sale out of Cyprus?
You can sell the property at any time and with no restrictions, through a registered estate agency. The equivalent of the full purchase price can be remitted immediately. The balance reflecting an increase in its value can be sent overseas at the rate of cy£50,000 per year, plus any interest earned during the year, starting from the year after the sale. Property sales in Cyprus are subject to capital gains tax at a rate of 20% on the profit. The first cy£10,000 profit per person named on the title deed is exempt.
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Q. What sort of income can I expect for long/short term tenancy agreements?
Long- term rentals start at ₤250 per month up to ₤1000 depending on property.
Short-term rental as a rough guide are usually ₤20 per day. As a general rule, one-bedroom properties are marketed at ₤30 and three bedroom from ₤50 per day. A three-four bedroom villa with a private pool range from ₤80-150 cyp.
* Your local agent can help you price your property, based on location and the rate for that area.
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Q. What media is available in Cyprus?
There are six Cypriot/Greek T.V. stations available at the moment free of charge. Approximately 30% of the programmes are broadcast in English and all foreign films are broadcast in their original language, with Greek subtitles. Residents can also subscribe to the Cypriot cable service LTV to watch US and UK sports and programmes.
There are also a number of satellite services available including Sky. Numerous radio stations are also available, which are broadcast in Greek and English. In addition to these is the British Forces Radio that broadcasts on a 24 hour basis in English. The island offers two independent English newspapers and UK national papers, usually with a delay of only one day from their date of issue.
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Q. What is the Cypriot communication system like?
Cyprus has one of the most advanced (rated third in the world!) and cheapest telecommunication systems available. ISDN, ADSL and standard dial-up PC networking are also easily accessible.
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Q. What are the average charges for communal services?
Currently communal service charges range from CY£20 - 40 per month depending on the project and the services provided within the project i.e. Swimming pools, tennis and squash court, gym, etc
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Q. How much can I expect to spend fitting my property with appliances and furnishings?
You can expect to spend between £3,000 and £5,000 on a one or two bedroom property, dependent on the size of the property the quality of the items purchased.
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Q. Can you help with the purchase of goods?
We will get as much, or as little involved as you wish. We can simply recommend stores and items, go shopping with you or purchase all of the goods on your behalf and save you travelling to Cyprus.
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Q. How much can I expect to spend on utilities and council rates in Cyprus?
Normally local council rates for services such as rubbish collection etc are no more than £80 a year per property. Bottled gas is charged at around £3 a bottle and lasts around three months. Telephone call charges in Cyprus are set at one of the cheapest rates in the world. Electricity on average is about £300 a year and water around £100 a year, based on consumption.
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Q. Roughly how much does property insurance cost?
As a general rule property insurance is charged at 1.65% of the current property value and contents are calculated at 2% of their total value.
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Q. What are the standard payment terms when purchasing a property from a developer?
To reserve a property from most developers, a non-refundable deposit of CY£1,000 is usually requested. Generally within 20/30 days, 30% should be paid, at which time your legal representative will register the signed contracts of sale with the land registry.
A further 20% is payable on completion of the structure, 20% upon the completion of brickwork and rendering, 20% upon the completion of flooring and 10% upon delivery. These percentages can vary, and we have found that most, if not all developers are very accommodating and can adjust the payment structure to suit.
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Q. When do we receive title deeds for our free hold properties?
In Cyprus title deeds, unlike the UK, are issued after the completion of the project. In the case of houses this process may take up to 18 months or longer, depending on the size of the project. For an apartment in a project of 10 to 60 apartments this process can take up to 3 years.
This does not mean you can not sell your property at any time before that. From the minute your contract of sale is registered at the land registry department the property is officially yours and you can sell your property the next minute.
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Q. Are the properties for sale freehold or leasehold?
All residential properties in Cyprus are freehold.
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Q. How does buying in Cyprus compare to buying in other European countries?
Buying in Cyprus is very simple. The legal system is based on the British legal system making contracts and processes easy to understand.
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Q. Is there any form of compensation for late delivery of property?
Most developers will compensate clients if we are responsible for late delivery. Make sure your contract contains a clause relating to this matter.
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IMPORTANT
The information provided above should be used as a guideline only, and can vary with regard to individual circumstances. For further information, or advice contact us via e-mail.
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