For this to happen, purchasers must reside in Cyprus for at least 6 months and 1 day. They may then elect to have their pension or investment income to be sent directly into their Cypriot external account and since it is generated from outside Cyprus it will be taxed at just 5%. Once signed, the contract must then be stamped by the purchasers Advocate within 30 days of its dated signature or a fine will be imposed. Stamp Duty is levied at the rate of £1.50 per £1,000 spent up to £100,000 and thereafter £2 per £1,000. The property is then encumbered on behalf of the purchaser by.the Advocate, in order for the vendor to be prevented from alienating it from himself before the conveyance procedure. Payment for the property must be made in foreign funds emanating from abroad. In order to be allowed to export your money from Cyprus in the event that you wish to sell, evidence of payment for the property with foreign exchange must be provided to the Central Bank by the purchasers Advocate, along with a duly stamped cancellati6n contract. The law dictates that the equivalent of the full amount paid for the property in foreign funds and any increase in the value of the property may be transferred abroad at the time of resale. As for the capital gains tax position, the first £10,000 is tax exempt and the rate of 20% is charged on the rest of the gain.

Permission is needed in order to obtain immovable property by the purchasers Advocate and a separate title deed is available through the district land registry, only then can the transfer of Title be finalised. The conveyance procedure involves the district land registry being paid the transfer fee by the purchaser; transfer fees are based on the market value of the purchased property, which is calculated at the rate of 3% for the 1 st £50,000, 8% from £50,000 to £100,000, and 8% for amounts over the 1 st 100,000. Then registration into the purchasers name can be affected by their Advocate. Title could in the first instance only be given to single persons or married couples. It can now be obtained by all members of a family together on the same title deed and also unmarried couples who have lived together for over 5 years and have evidence of a joint bank account and/or a child together are looked on favourably by the Council of Ministers.

Once you own property in Cyprus, your Advocate can arrange an appointment with the immigration authority and on provision of sound financial standing, pension forecast & bank details, you can obtain a temporary residence permit. U.K. nationals are also allowed to work in the country if they have a work permit. It is wise for a property purchaser to arrange for his Advocate to draw up a will, as inheritance tax is not imposed on property paid for by foreign funds. However, if one should demise without a Cypriot will, a will left abroad would not legally cover property in Cyprus. Therefore it would be difficult for the purchasers Advocate to then carry out any wishes as to who would inherit, or indeed find the legal heirs.

Personal effects, household goods and furniture can be imported duty free by property owners provided they are over a year old and are for personal use. Retired couples are allowed the concession of two duty free cars. Purchasers who will not be retiring to live in Cyprus, are also eligible to purchase a duty free car, however; in their absence it must be placed in a bonded Warehouse (which costs no more than f9 per month).

Annual immovable property ownership tax is imposed by the government at the rate of CYP 0.80 per CYP 1,000 and comes to approximately CYP 60-3120 per annum depending on the value of the purchased property. The municipal authorities levy an annual property tax at the rate of CYP 20-30 per annum. The sewerage board of each district impose a sewage tax of CYP 20-40 per annum.

Local authorities charge CYP 40-50 for the regular collection of rubbish, the cost depends on the area of the purchased property. If the property purchased is within a project/complex development with common areas, a general agreement is signed on possession of the property and a community fee is levied to cover the property owners share of the cost of cleaning, repairing, and maintaining the common areas such as:- the cost of the electricity for outside.lighting, landscaping and gardening, swimming pool maintenance, and management fees. These are calculated per square meter for each property, payable annually in a lump sum at the beginning of every year, this price may escalate per annum, in accordance with the law of the Republic of Cyprus, Retail Price Index, which is in accordance with inflation and the cost of living. Lastly, charges for utilities are payable to the respective authorities at intervals and can be direct debited on connection. Water is supplied at CYP 45 deposit plus approximately CYP 6 per quarter plus consumption, electricity is supplied at CYP 10 deposit plus consumption every 2 months, and telephone is CYP 23 deposit for a mobile line, CYP 30 deposit for an analog line and CYP 40 deposit for an I.SD.N. line, plus the line rental and consumption every month.

Lawyers (aka Advocates) are plentiful in Cyprus. Get quotes from those who specialise in conveyance and are familiar with the application process for 'Aliens' buying property in Cyprus. Each Lawyer's fees will vary. There is no standard scale of fees, although most will apply charges according to the value of the property being bought/sold. Get quotes in writing to confirm the Lawyer's fees, Government levies, such as application fees, stamp duty and land transfer tax. Give yourself plenty of time to consider the Contract of Sale you intend to sign. Seek a third opinion if need be. Asking questions should not be embarrassing for you. Most Lawyers are happy to give you their time so you are confident of the Contract of Sale, in advance of signing. Look carefully at the content of the Contract of Sale. Check clauses that will determine what happens if you make late payments (penalty applicable). DevelopersNendors compensation for late delivery should also be included. In some cases, Developers/Agents will agree special payment terms, contrary to the norm. Ensure these terms form part of the Contract.

The plans of the property you intend to have built will form part of the Contract of Sale and each page will be signed by all parties concerned. It is important that any structural changes you have agreed are confirmed by revised plans being drawn up. It is vital that you keep copies of all paperwork relating to your transaction, even scribbled notes, for future reference. Dates of events/discussions should also be recorded. Ensure you keep regular contact with your Developer/ Vendor and Lawyer. Making friends with a fellow countryman who resides in Cyprus permanently can be a great advantage and a good source of information on the building progress of your property. Smiling comes easy when you have laid solid foundations to your transaction. A proper, comprehensive Contract and an appreciation of the Cypriot mentality will go a long way to making your purchase as trouble-free as possible!