What does ‘Property Ownership’ mean in Cyprus and how does it work?
Ownership in Cyprus generally means freehold title-that is “owning property in perpetuity”. Transfer of ownership from vendors to purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with a Power of Attorney. In the case of non-Cypriots, a prerequisite of registration is evidence that the buyer has obtained permission from the Council of Ministers. However, this permission is granted more or less as a matter of course to all bona fide purchasers and it especially hassle-free for all EU citizens.
What percentage of a plot may a house be built on?
Ten per cent. Additionally (and subject to these regulations) covered verandas and basements are not calculated in the building factor – i.e. a plot of 2000m2 can have a Villa of slightly more than 200m2 built on it.
What construction guarantees are available?
There is a full 1-year construction guarantee, as it is the industry norm in Cyprus.
Can I have a security system installed at my property?
Yes, but this is an optional feature.
Can I have private telephone, fax and internet lines installed?
Yes. The Cyprus Telecommunication Authority (CYTA) offers telephone and fax installation and services. Broadband Internet access is available at the Resort and access can be secured through CYTA. Internet services are offered through CYTA and other private companies, including Spidernet, Logosnet, Avacom, Thunderworx, Netway and more.
Do properties have enough parking spaces?
Each property has at least one private parking space available.
What are the annual running costs for each type of property?
Annual running costs vary, but as an example an owner of a Villa pays €1,500 per annum in community fees.
What property tax costs may I encounter upon my move to the Cyprus?
The following outlines the legal fees and Cyprus property tax costs you may encounter upon your move to the island.
Legal Application Fees
On purchaser’s request, Aphrodite Hills Resosrt is willing to process the application to the Council of Ministers for acquiring the necessary permission for the nominal fee of €1,800 payable only when the permission is granted. Foreign buyers can also appoint a solicitor in Cyprus to handle their affairs.
Acquiring the Title Deed
Transfer of ownership from vendor to purchaser is processed by the Cyprus Land Registry Office. To protect the buyer’s rights to the property and provide additional safeguards, it is advisable that the Contract of Sale be in writing, and registered at the District Land Registry Office within sixty 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 Government archives. At any time after the purchase, the buyer may sell or dispose of the property at will, provided that he/she has a valid contract. It is illegal for the Seller to contractually or otherwise prevent or forbid the Purchaser to deposit the Sales Agreement with the District Land Office. The Seller cannot mortgage property or part of the property after it has been sold (to the Purchaser) without notifying the Purchaser. If the property is mortgaged prior to its sale, the Purchaser has the right to pay the share value of the purchased property to the lending institution and the share value of the property must be released from the mortgage. The Seller or the lending institution cannot deny the payment and the consequent release of the purchased property from the mortgage. The Seller is obliged, prior to any sales, to deposit with the District Land Office, the ‘value coefficient’ of each property together with the planning and building permits and architectural drawings. Furthermore, the Purchaser has the right to know the value coefficient of the property he will purchase. Aphrodite Hills Resort Ltd has issued all the title deeds for all plots, villas and all the properties of Orpheus Village and is promptly proceeding with the issue of the title deeds for the properties of the other villages.
On the signing of a contract the purchaser is liable to pay stamp duties at the rate of 0.151% up to €170,860 and thereafter at the rate of 0.201% per €1,709. The Purchase Contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.
Immovable Cyprus Property Tax & Services Tax
Upon transfer of the property and registration in the purchaser’s name, the District Land Registry Office will charge Transfer fees which are based on the market value of the property at the time of purchase, and are calculated as follows:
|Value of Property (€)
|1,71 – 85,000
|85,001 – 171,000
|171,000 and over
Capital Gains Tax
If the purchaser decides to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange, may be transferred abroad at the time of the resale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however, the first €17,086 are tax exempt. Provided two buyers (maximum 2) are on the original Contract of Sale, then the tax allowance can be up to €34,172.
Inheritance Tax is not imposed.
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time; approximately one year. Also, no duty is levied on cars, allowing retired couples to enjoy the additional concession of two duty free cars.
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of approx. 5% or less, depending on income. Additionally, Cyprus has Double Taxation Treaties with many European and other countries, safeguarding its residents from paying tax in both countries.
Local Authority Fees
Depending on the size of your property, local authorities charge between €85 and €256 per annum for regular refuse collection, street lighting, sewerage and similar community services. Communal Services fees are payable to your local Municipal Authority.
As the registered owner of the property, you are required to pay an annual Municipality Tax, calculated on the market value of the property as at 1st of January 1980. Rates vary from 1% – 2%. Municipality Tax is payable to your local Municipal Authority.
What is the allocation of land for development at Aphrodite Hills?
Land is allocated as follows:
- Building plots for residential villas 29,8%
- Building plots for integrated development 13,9%
- Roads 9,2%
- Golf course fairways 19,8%
- Village Square, Clubhouse and Ancillaries 1,7%
- Areas for infrastructure works 0,3%
- Green areas (public and private) 29,3%
- Is VAT payable on property and if so at what rate?
- VAT is applicable and currently the rate is at 19%. All our sales prices are quoted inclusive the VAT.
In what currency are payments made?
All payments are to be made in Euros and all foreign currency payments will be converted into Euro at the daily exchange rate.
What are the payment terms for purchasing Real Estate?
Current Payment Terms are as follows:
- Building Plots: 100% on Signing
- Construction of Villa:
- 25% of the of the Villa purchase price payable on signing of the Contract of Sale.
- 25% of the Villa purchase price payable six months from signing the Contract of Sale.
- 25% of the Villa purchase price payable twelve months from signing the Contract of Sale.
- 25% balance of the Villa on delivery (up to 24 months from signing)
Please note that the above payment terms may change at any time.
Can I apply for Permanent Residence?
There is no necessity for a non-Cypriot owning real estate in Cyprus to hold a Permanent Residence Permit under the law. For EU citizens there are no restrictions. They just have to complete an application form at the Immigration Office for formality purposes and automatically they receive their Residence Permit. However, application for Permanent Residence for non-EU citizens is also easy to obtain once the applicant fulfills certain requirements. To apply for Permanent Residence, an application needs to be completed and proof should be provided that the applicants and their family are self-supporting. The following documents are needed to be supplied to the authorities.
A copy of the Sales/Rental Agreement
Copies of pension/retirement income
Any other document relevant to income
Three photos and passport
The application for Permanent Residence can be made by visiting the local Immigration Office in the area of residence.
Can I bring my pet to Cyprus once I move there?
Cats and dogs are permitted to be brought into Cyprus provided a license has been obtained in advance from the Department of Veterinary Services in Nicosia. A period of six (6) months house quarantine may be imposed which, in some cases, may be executed at the owner’s premises.
What is the Resort's pet policy?
Guide dogs are allowed in all areas. All other pets must be controlled by means of a leash and all mess created by the pet must be cleaned and disposed of by the owners. Pets are not allowed to enter the golf course at any time.
What is the weather in Cyprus like?
Cyprus has ideal weather with sunny days and warm temperatures almost every day of the year. The summers can get very hot, with temperatures reaching over 40 degrees Celsius.
Can I resell my property?
In the event that the purchaser should wish to sell the property at some time in the future, Cyprus law permits the full amount paid for it in foreign currency to be remitted abroad at the time of the sale.
Who is managing Aphrodite Hills and what services are available to Real Estate owners?
Aphrodite Hills is jointly managed by Aphrodite Services and Aphrodite Hills Property Management Ltd subsidiaries of Aphrodite Hills Resort Ltd, specifically set up for this purpose. Aphrodite Services caters for the Resort as a whole i.e. the maintenance of all common areas (including roads and landscaping), and the garbage collection and general cleaning of all public and common areas, security services etc. Aphrodite Hills Property Management Ltd caters for the provision of specialised services to real estate owners, such as, garden and pool maintenance, maid services, linen and laundry service, welcome food parcels etc. Please see our Property Management section for more information.
Who is eligible for Property Management?
Property Management is available only to Aphrodite Hills real estate owners.
Am I allowed to use Property Management Services without the contract?
Yes, you can use Property Management services even though you have no contract with us. Please contact us for details.
Could you undertake the task of taking delivery of furnishings from various suppliers?
Yes, Property Management can take delivery of furnishings provided we have a key for access to the property. We also need to have a list of what items will be delivered and from which company.