The Cyprus Property Market
Properties For Sale in Cyprus
Over the past 5 years,
property price increases have averaged 15 to 20% per annum depending upon
location. Rental yields have also averaged 7-10%, combined with this growth rate
have made Cyprus a West European investment hot spot especially as homes on the
island are still priced 20 -30% lower than comparable properties in Spain or
Portugal.
Cyprus has an
excellent tax regime for residents and retirees, which make it an attractive
option for those wishing to invest in 'buy to let' properties for sale
in Cyprus.
The average rental net
return in Britain today maintains around the 3% to 4% mark, and capital
appreciation may match this, however there is the likelihood that there will be
a static capital value for the next three to five years. Capital appreciation in
Cyprus is still in double figures, expecting to show 10% to 17.5% especially
with off-plan projects.
Cyprus property prices
are poised to increase by 50 per cent when the island joins the Euro zone which
according the IMF will be in April 2008. High standards and low costs of living
along with virtually non-existent crime rates and numerous tax advantages make
Cyprus an attractive option for UK investors.
With the country
being so British-friendly, the weather so mild, the locals speaking the English
language so much, the relatively cheap taxation system, the strong British
military presence in a couple of locations on the island and the legal system
being based upon a version of English Law, it is easy to see the attraction to
people looking for the good life in retirement, a peaceful holiday destination
in which to relax, or a great place to start a business. Properties For
Sale in Cyprus by Antis Developers - guaranteed to meet your needs.
 The Legal System
The legal system is
similar to that in England whereby your solicitor will perform all necessary
searches on the property, ensure it is free of charges and has the necessary
planning and building permission.
Legal fees should be in
a range of CYŁ 750.00 to CYŁ 1,000.00
Stamp Duty Transfer tax
Stamp Duty is a one-off
payment levied according to the value of the property and paid to the tax
authorities within 30 days of signing the sale agreement. The rate up to the
first CYŁ100,000 of the purchase is CYŁ1.5 per thousand and thereafter CYŁ2.00
per thousand.
Transfer Tax
Real Estate Transfer Tax
(RETT) is paid to the Land Registry Office when the
Property is transferred
into the purchaser’s name. The Rates are:
Value up to CYŁ 50,000 3
%
CYŁ 50,001 - CYŁ 100,000
5 %
CYŁ 100,001 - and over 8
%
Other Taxes to Consider
The Cypriot government
abolished inheritance tax years ago. This is a huge benefit for those inheriting
your estate.
Capital Gains tax is
levied at a rate of 20% on the profits made from the sale of your property. In
practice this means the difference between the purchase cost and sale price
achieved, less an indexation allowance and the cost of any improvements. There
are also other generous exemption allowances in place.
Further benefits of
purchasing in Cyprus
No Inheritance Tax
Overseas dividends and
interest exempt
Profit from the sale of
equities is exempt from Capital Gains Tax
Profit from the sale of
UK properties, including investment properties, exempt.
Retirement income taxed
at 5% (not at up to 40% as the UK).
Lump sums on retirement
exempt.
Capital sums from
approved funds, i.e. pensions, exempt
The attraction for the
current Buy-to-Let investor (particularly those in the UK), is the tax
advantages of Cyprus. When these investors choose to retire or acquire tax
status in Cyprus, their situation changes dramatically. Upon attainment of
Cypriot tax residency and domicile, the tax treaty of Capital gains Tax (CGT) is
hugely advantageous. With their new Cyprus tax status, the Buy-to-Let investor,
with tax planning, can reduce their CGT liability. Their UK Buy-to-Let
investments become "foreign investments‘ and therefore exempt for CGT.
Antis Developers are here to guide you and will
help you locate properties For Sale in Cyprus.
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