Zambas Law Firm offers excellent and expedient legal advice and services to residents, non-residents and corporations interested in buying, selling or leasing commercial or residential property (freehold or leasehold) in Cyprus.
Our Firm maintains good cooperation with major Real Estate Agencies in Cyprus which will help our clients to choose a property that fulfill their requirements in any location in Cyprus.
We can supervise the whole transaction and recommend trustworthy constructors, architects, surveyors and estate agents, according to your needs.
Our experienced staff helps our clients to obtain various types of permits to stay in Cyprus, including inter alia a Permanent Residence Permit under Category F which allows NON EU Nationals to live with their families permanently in Cyprus without the right to work. Upon the decision of the Minister of Interior of the Republic of Cyprus when a non EU National buys a PROPERTY - RESIDENCE for himself and his family of €300.000 and more, his application for Permanent Residence, under this category will be examined favourably.
Our services inter alia include:
- Drafting of contracts/ agreements
- Amendments of contracts
- Cancellation of contracts
- Negotiation of contracts
- Reselling of properties
- Filling applications by foreign nationals for permission to be registered as owners of immovable property in Cyprus
- Property management for non-residents
- Estate planning and administration
- Wills, probate and re-sealings and estate administration
- Search at the Lands Registry Office for particular properties concerning legal encumbrances
- Completion and submission of necessary bank documentation for mortgage and finance
- Settlement of inland revenue stamps
- Filing of sale agreement with the Lands Office
- Settlement of capital gains tax
- Completion and submission of necessary documentation for the completion of the transfer and registration of the title deed
- Execution of agreement by Power of Attorney
Investing in Cyprus
Cyprus is located in the eastern Mediterranean Sea, lying between 3 continents and close to the busy trade routes linking Europe with the Arab World and the Far East.
There are many reasons why property in Cyprus is seen as such a stable investment by so many overseas property buyers. Property in Cyprus is seen as a safe investment because the Cyprus property market is growing at a stable rate and property prices remain competitive compared with other EU locations. The standards of living in Cyprus is high while offices and living accommodations are plenty and at reasonable prices.
Buying a property in Cyprus also appeals to many investors who feel safe investing in a property market such as Cyprus, a European Member State, where the legal system is based on Common Law inherited from the United Kingdom, which controlled Cyprus until its independence in 1960. Whilst the official languages of Cyprus are Greek and Turkish, English language is spoken by the majority of the population, and is almost universally used in commerce, industry and administration.
Property in Cyprus offers a stunning climate and beautiful beaches, a very strong existing infrastructure and excellent travel options with direct flights to the major European and Middle East Business Centers.
The tax incentives are designed to stimulate growth in the Cyprus property market by reducing the cost of home ownership. The Cyprus government has expanded the 5% VAT payable on new homes used as primary residences to include non-EU nationals.
Immovable Property Law in Cyprus
The usual procedure that has to be followed in order to acquire immovable property in Cyprus is the following:
1. Drafting and Execution of a Contract of Sale between the Buyer and the Seller.
This contract will set out the terms and conditions of the acquisition of the immovable property in question and regulate the relationship between the Seller and the Buyer.
The contract must be officially stamped within one month of its signing (in case of default penalties are imposed) and it must be deposited within 6 months from its signing, to the Land Registry Office of the district where the purchased property is located.
In cases where a separate title deed has not yet been issued for the Purchased Property, the depositing of the Contract in the Land Registry is acting as a security for the Purchaser, obstructing the Vendor from mortgaging or selling or transferring the property to someone else.
The lack of a separate title deed for the Property does not prevent the Purchaser from selling the property, since such as a sale can be achieved either by a cancelation agreement or an assignment of rights agreement.
The depositing of the Contract of Sale in the Land Registry is also being done for specific performance purposes under The Sale of Immovable Property (Specific Performance) Law Cap 232.
2. Application by foreign nationals for permission to acquire property in Cyprus
In accordance with The Cypriot Acquisition of Immovable Property (Foreigners) Law, Cap. 109 all the foreign non E.U. nationals must apply to the Council of Ministers in order to get permission to acquire immovable property in Cyprus. This is a typical procedure and in most of the cases the foreign nationals acquire the permission without any problems.
However each foreign national can acquire only one property in Cyprus i.e. one house, office, plot of land etc.
3. Registration of the property with the Land Registry
As soon as the separate title deeds are issued by the Land Registry the Purchaser upon the delivery of a notice from the Vendor, must attend at the Land Registry in the district in which the immovable property concerned is located either personally or represented by a lawful attorney in order for the property to be transferred and registered into his name.
The transfer fees payable for the registration of the immovable property in the name
of the purchaser are as follows:
- 3% up to €85430
- 5% from €85430 up to €170860
- 8% from €170860 and over
4. Capital Gains Tax
The capital gains tax in Cyprus is 20% and it is imposed on the net profit proceeds from the sale of the property. Net Profit means the profit of the sale after deducting the following:
- Registration fees
- Tax allowance €17086 per person for first sale or €85430 when legally residing in the Property for more than 5 years
- Registered Estate Agents fees
- Any extra work performed on the Property
- Inflation etc.