BUYING GUIDE

Permanent Resident Permit

Investment / Financial Criteria

The applicant submits a statement from a Cyprus financial institution showing that an amount of at least €30,000 has been deposited in a reserve account, for a period of at least three (3) years. This amount must show that it was transferred from abroad.

The applicant shall submit with the application of a title deed or sales purchase contract in their name that has been filed at the Department of Lands and Surveys, for a residence. The market value must be at least €300,000 (excluding VAT) and an official proof of payment of at least €200,000 (excluding VAT) must be provided, regardless of the delivery date of the house. The Property may be house or an apartment.

The applicant may purchase up to two properties provided the total amount of both properties meets the requirement of €300.000 (excluding VAT). The properties may only be brand new properties

The applicant and spouse must be able to demonstrate that they have at their disposal a secured annual income of at least €30,000 with increments of €5,000 for each dependent. This income may arrive from wages, pensions, share dividends, interest, fixed deposits, rents or other income from abroad.

Quality Criteria

The applicant and their spouse must submit a certificate of a clear criminal record from their country of residence.

The applicant and spouse will attest that they will not be employed directly or indirectly in Cyprus.

The applicant and any member of its family included in the immigration permit must visit Cyprus at least once every two years.

More information can be viewed on www.moi.gov.cy/crmd

Permission to buy Property in Cyprus

For non-Cypriots, the process of purchasing properties in Cyprus is straight forward and simple, especially in comparison to other countries.

Non-EU citizens are entitled to freehold ownership of properties, while offshore entities may buy premises for their business or as a residence for their foreign employees with the permission from the Council of Ministers by applying within a reasonable amount of time after signing the sale purchase agreement. In the meantime, the buyers will take possession of their property without restriction.

EU citizens who are not resident in Cyprus also need the approval of the Council of Ministers.

EU citizens who are permanent citizens in Cyprus do not require permission to buy any immovable property.

Sales Purchase Agreement

The Sales Purchase Agreement once signed is a legally binding contract (the legal system of Cyprus is based on British Law) which sets out details of the transaction, the price, the vendor, the name of the purchaser, the project name and location of the specific property as well as any other terms of sale. Stamp Duty is also payable by the purchaser within 30 days and a certified copy is required to be filed at the Land Registry Office within two (2) months of the Sales Purchase Agreement execution date to secure beneficial rights to property ownership.

Depositing a copy of the agreement to the Land Registry Office provides the purchaser the right to seek “Specific Performance” of the terms and conditions of the contract and thus to register the property into the purchaser’s name. The contract of sale deposited with the Land Registry Office may only be withdrawn with the purchaser’s consent.

The Cyprus Department of Land and Surveys, the oldest governmental department of the public sector, was established in 1858 and over the years it has evolved in making it one of the most sophisticated land registry systems in the world.

Therefore, purchasing a property in Cyprus, is a very straightforward and trusted procedure.

Payment terms

Payment terms for the Sea Front Line Protamare Sea View project are specified on the price list. 

Off plan terms of payment for the Sea Front Villas are:

30% upon signing

20% upon completion of structure

20% upon completion of rendering and plastering

20% upon completion of flooring

10% upon delivery

Note: Other Properties of the Company may vary from the above

Title deeds

The Property Title Deed is guaranteed when purchasing your property from Protamare!

Once completed, inspected and approved by the relevant Government authorities, the Land Registry Office will issue the title deed of your Protamare Sea View property. This may take time due to the number of applications handled and approved by the relevant authorities. The transfer of ownership from the Vendor (as always issued in the Developer’s name initially) to Purchaser is a simple procedure undertaken through the Cyprus Land Registry Office, either by the buyer in person or by a representative with a power of attorney.

VAT Applied to Real Estate (from 5%)

Purchasing Land

Under the VAT Rules purchasing land is not liable to VAT.7

Purchasing Properties with the 5% incentive

Currently there is in place an incentive if a Buyer purchase their first residence in Cyprus, declares it as their main residence. If owned for at least 10 years then the first 200 m2 will be charged at 5% VAT and the rest will be levied at 19%. It is noted that if the house is sold before 10 years then the buyer will need to pay the balance of the VAT proportionally.

Purchasing Properties with 19% VAT

Developments with Town Planning permits submitted after May 1st 2004 are liable to VAT and should be noted that 19% VAT will be imposed on the Sale Price of a Property unless declared as first residence. Therefore, it is possible that older licensed properties may have VAT exemption.

Purchasing Properties under the Provision 153

If a residence is bought with the intention of giving the right of usage to a rental management company to provide rental services then the purchaser will be obliged to pay 19% as the 5% incentive is not applicable, and will have the obligation to register with the VAT authorities.

Other Costs

Stamp Duty Fees

Stamp duty is payable only once, when you sign the contract, at 1.5 ‰ for values up to €170.086 and 2.0‰ for values thereafter. Stamp duty is payable within 30 days of signing the contract of sale.

Transfer Fees

Upon notification that the title deeds are ready, the Land Registry Transfer fees become payable. This is calculated on a sliding scale based on the market value of the property at the time of purchase and is calculated as follows:

Transfer Fees (Land Registry – One Off Fee)

    1. Upton €80,000             @ 3% = €2,550
    2. €85,001 – €170,000     @ 5% = €4,250
    3. €170,001 and above    @ 8%

Currently there is an incentive that if the Purchaser bought the property with VAT then there is no Transfer Fees applicable, where as if the there was no VAT then there is a discount of 50%.

http://www.cylaw.org/nomoi/enop/ind/0_219/section-sc78af0763-1bc8-12b0-b6e9-ae36eb2a1fa4.html

Inheritance Tax

There is no Inheritance Tax in Cyprus.

Capital Gains Tax

Stands at 20% but incentives may apply.

 

Disclaimer

This information is provided as a guide, and should not be relied upon by buyers in itself. Any interested parties are advised to visit the site and confirm all legal, tax and financial considerations through speaking to qualified and reputable experts in these fields. 

The details contained in this website are not intended to constitute part of an offer of contract. Any areas, measurement, distance, payment terms or other conditions are just indicative. All of the photograph, stills, and computer generated images shown are indicative and cannot be guaranteed to represent the completed property. Protamare Hotels Limited reserves the right to change any information without prior notice.

 Area calculations and computer rendered images are based on drawings and are subject to change per building codes applied and the approved town planning permits.

About Our Latest Project
The blending of functionality together with clean lines and classic elegance gives rise to the uniqueness of these sea front villas in Protaras. Designed on a modular concept, 6 bedroom villas can be transformed into 4 bedrooms, creating a grand master suite and more spacious living areas.
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