Cyprus Information
With EU backing Cyprus has been able to rapidly update its infrastructure and services and there has been a flood of overseas investment money into the country. As a result of these changes the property market in Cyprus is booming. Paphos and Lanarca airports have undergone major refurbishment.
At Paphos a new airport terminal has been constructed which cost £153 million. This was completed in 2008 and has enabled this airport to handle 2.7 million passengers every year. Flight statistics show that flight only tickets are now outselling the traditional holiday packages and it is clear that more individuals than ever before are choosing rental properties rather than opting for hotel resort holidays.
The country is not a destination that is at the mercy of changing fashion trends as individuals have always retired and bought holiday homes here. There is very little risk associated with investing in Cyprus and the growth in demand from both retirees and investors is due to the fact they love the weather, culture and tax advantages of the country. Cyprus is very stable politically being a republic and benefits from a favourable taxation regime. Entrepreneurs and investors are not hampered by red tape and the excessive regulation that exists in the UK.
Golf Courses
There are currently three major golf courses in the Paphos region – Aphrodite Hills, Secret Valley golf club and Tsada golf club. Another championship course is under construction at Argaka which is near to Polis. A new 18 hole signature golf course development will also soon be taking shape at Tersefanou . There is a real future for golf in Cyprus as it is has the benefit of a year round climate which means , it will be a major attraction for Northern European golfers.
Health
Cyprus has a very high standard of health care. Healthcare is inexpensive and a British citizen with a form E11 is entitled to free healthcare under the European Union reciprocal arrangement.
Education
The educational system is of a very high standard and can be accessed by all resident’s children who can attend either the local Greek or International schools.
Climate:
Cyprus is the hottest, driest island in the Mediterranean. It enjoys more sunshine than any other Mediterranean resort - typically 320 days of sunshine a year. The rainy season is from November to March, with most of the rain falling between December and February. The sea is warm from the end of May until October.
USEFUL INFORMATION
Visas: Nationals of the USA, Australia, Canada, Japan, New Zealand, Singapore and the EU can stay in the Republic of Cyprus for up to three months without a visa.
Public Holidays: Holidays in the Republic are as follows: New Year's Day (1 Jan); Epiphany (6 Jan); First Sunday in Lent (Feb); Greek Independence Day (25 March); Good Friday (March/April); Easter Sunday (March/April); Greek Cypriot Day (1 April); Spring Festival/Labour Day (1 May); Feast of the Assumption (15 Aug); Cyprus Independence Day (1 Oct); Ohi Day (28 Oct); Christmas Day (25 Dec); St. Stephen's Day (26 Dec).
Local dishes: Cypriot food is a combination of Greek and Turkish cuisine, based primarily on meat, salad and fruit. The local cheese is haloumi. The barbecue is a very popular way of cooking meat and fish, and a mezes is a traditional meal consisting of around 20 different small dishes. Cyprus is also famous for its fruit, which the government protects with a ban on imported products. You'll find strawberries, stone fruit, melons, prickly pear, citrus fruit and grapes.
Geography: Cyprus is the third largest island in the Mediterranean Sea and the point where Europe meets Africa and Asia, 105km west of Syria and 380km north of Egypt. It’s 240km from East to West, and 96km from North to South with a population of 750,000.
Cyprus tourism:
Paphos
Paphos is located on the south west coast of Cyprus.
It is a sophisticated Mediterranean town with a year-round holiday industry and a significant ex-pat retirement community, which continues to grow every year.
It is a unique blend of the ancient and modern. It has excellent shopping facilities and amenities of every kind and also has more historical sites than any other area of the island.
The government has made significant investments into the local infrastructure and the improvements at the International airport will also add to its attraction.
The new Marina (1,000 berth) that is planned for Coral Bay is targeted to attract high spending visitors from the sailing community.
Paphos already has three excellent golf courses and the area's popularity means it has very good rental and resale markets.
Polis and Latchi
Polis and Latchi on the north west coast are attracting a great deal of interest from investors due to their close proximity to the Akamas Peninsula a conservation area of outstanding natural beauty.
Polis appeals to tourists who appreciate authenticity and tranquility whilst Latchi is famous for its fish restaurants.
The area is a unique blend of mountains, countryside and beaches.
Taxes / Finance
Cyprus Property Tax
Stamp Duty
A purchaser is liable to pay this duty within 30 days of signing the purchase contract. The rate is 0.15% on the first CY £100,000 & 0.20% on the balance.
Example: CY £100,000 purchase duty payable of CY £150.00.
Immovable Property Tax
This tax is based on property value and payable on an annual basis.
Property Value CY £ Rate %
Up to £100,000 Nil
£100,001-£250,000 0.25
£250,000-£500,000 0.35
£500,000 & above 0.40
Example: Cy £120,000 purchase tax of Cy £50.00 per annum is payable.
Inheritance Tax
On 1st January 2000 Law 74(1)2000 abolished the obligation to pay any inheritance tax no matter what the value of the estate.
Local Authority Tax (Rates)
These are only between CY £30-£100 per annum and will depend on the size of the property. It caters for refuge collection and street lighting etc.
Property Transfer Fees
These are payable when you acquire the title deeds and transferring ownership of the property into your name. These fees are payable to the Land Registry only once and can sometimes not become payable for 3-4years where the title deeds need to be separated out in relation to larger projects. The fee is calculated as follows.
3% on first CY £50,000 of purchase price
5% on second CY £50,000-100,000
8% over £CY £100,000
Example: CY on £100,000 purchase the fee payable would be £4,000
Joint purchasers will pay less as each purchaser can claim CY £50,000 each at 3%
Example: CY £100,000 purchase the fee payable would be CY £3,000 a saving of CY £1,000.
Capital Gains Tax
Very generous exemptions exist and a gain of CY £20,000 will be treated as tax free for any purchase in joint names. Tax is then charged on any gain at 20% but if vendors sell a property that has been their home for at least 5 years increased capital gains relief of CY £50,000 can be claimed.
The following can also be treated as deductible allowances.
Estate agency fees
Improvement expenditure
Inflation
Pension Taxes
A double taxation treaty exists between the UK and Cyprus that enables private and public pensions to be paid to the pensioners free of UK tax. Tax reforms have reduced the tax burden on foreign residents significantly in Cyprus and now a flat rate of 5% would only be charged on pension income over Cy £2,000 It is also possible to bring in dividends and investments income into Cyprus free of any tax.
VAT
The current rate is 15%
On new property 5% if the property will be principle place of residence and 15% for secondary properties. No VAT is payable where application of planning permission was submitted before 1st May 2004.
Cyprus Facts
Population : 780,000
Currency: Euro Jan 2008.
Language: Greek
Political System: Republic
Economy
Inflation: 2.3% - March 2006
Interest rate: 4.25% March 2006
GDP growth: 3.8% 2005
Income Tax: 20 - 30%
Corporation Tax: 10 % Lowest in European Union.
Capital Gains Tax: 20% - £20k crypt allowance if joint purchasers.
British High Commission in Cyprus
PO Box 21978
1587 Nicosia
Tel + 3572286 1100
Useful Cyprus web sites:
British High Commission:
http://www.fco.gov.uk/servlet/Front?pagename=OpenMarket/Xcelerate/ShowPage&c=Page&cid=1007029395231&a=KOverseasMission&aid=1013618505169
Cyprus tourism:
http://www.visitcyprus.com/wps/portal
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