iPhoneYouUp FAQs

1. Why Should Someone Buy Through A.T & P.E Homes (Cyprus) Ltd?

We have many years of experience in the Cyprus property with associates all over the island  and in Moscow , St, Petersburg and China with experienced personnel who can offer all the correct and important information regarding Cyprus real estate. 
                
We  can guide you through all the necessary steps required and will suggest safeguards from possible pitfalls aiming to get you the best property for your needs at a reasonable price. 
                
Our wide range of associates in Cyprus and abroad put us in in enviable position to offer the widest possible range of properties. 
                
Listing a property on our website is free of charge. Even if we do not have in our listing the property that you need; should you give us information on your requirements and an opportunity to search, we will do our best to find your ideal property. 
                
We also have a strong marketing team which exhibits properties world wide, who keep in touch with our clients with information and assistance. Our professional staff will give you the necessary details and other guidelines for safely buying, property in Cyprus. 
                
Our Office will arrange all the details with the developer/seller, negotiate on you part to obtain the best price and introduce you to a solicitor who will assist in all the legal work necessary, including opening a bank account and other financial details.

2. What Types of Property and How Many Can a Non-Cypriot Purchase?

As of now (2017) all EU citizens are entitled to buy as many FREEHOLD Residential or Commercial Properties or Land as they wish, there are now no restrictions, and have such the same rights as Cypriot nationals.
                
However restrictions still exist for Non EU citizens, who are entitled to purchase the following FREEHOLD property for your personal use:

- An apartment or a house or;

- A villa on a building site not exceeding 4.000m²;

- A piece of land not exceeding 4000m² for the purpose of erecting a house within a reasonable time period;

- Offshore Business Units can be bought/built which have unlimited office/work space;

- A second home maybe permitted depending on the type. [e.g., a holiday home in addition to a permanent home.];

Furthermore:
                
- Acquisition of Leases having a term in excess of 33 years duration, are treated similarly in Real Estate as a freehold;

- Acquisition in shares other than between husband and wife is not permitted.

3. Do Properties have Title Deeds?

Properties have title deeds. Title deeds are issued by the Land Registry Department, of the Cyprus Government, a few years after completion of the project. Individual houses follow the same procedure. Upon approval by the Council of Ministers of the application and confirmation by the Central Bank that the purchase was with foreign funds, then the transfer of deeds can take place within a few hours.

The following documents are required to be submitted in order for property to be transferred to your name as a purchaser:

- Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported into Cyprus.

- The sale contract.

- The Ministerial Council's (now undertaken by Local Authorities) permission for the purchased property.

- The property's title deeds, if available.

- Confirmation that all taxes for the purchased property [sewerage, immovable property, town taxes etc] have been paid.

- Transfer fees are paid on the value that the Land Registry department determines is the Market Value of the property;
                
- Based on the day of the original transaction / sales contract.

4. What Property Transfer Fees Can I Expect to Pay?

Transfer fees are paid to the District Land Office by the purchaser based on the sale price upon transfer of the property according to the following scale:

Property Value (€)	Fees (% of property value)	Transfer Fee (€)
Up to €85,000	3%	2550
€85001 - €170,000	5%	4250
€170,001 & above	8%	-

Please Note:
                
- For a €500,000 property, the transfer fee is €33,200 [based on €2550 (3% of €85,000) + €4250 (5% of €85,000)  + €26,400 (8% of €330,000)]

- Properties subject to VAT are exempt from the above transfer fees. 

- Properties not subject to VAT are eligible for a 50% reduction in the above transfer fees.

5. What is Immovable Property Tax and How Much is It?

Immovable Property Tax (IPT) was reduced in 2016 to approximately a quarter of that in the previous year and was abolished as of the 1st of January 2017.

6. Will I Have to Pay Stamp Duty and if so How Much?

The purchaser has to pay Stamp Duty prior to the deposit of the contract at the District Lands Office. Payment is due within 30 days of signing the sale agreement.
                
The amount is payable to the Tax Authorities and is based on the following table of charges:

Property Value (€)	Fees (€)
Up to €170,000	1.50€ per €1000 or part thereof
Over €170,000	2.00€ per €1000 or part thereof
With a maximum cap of €20,000. Stamp duty must be paid within 30 days from the date of receipt of the relevant document(s) into Cyprus. Late stamping of the relevant document(s) are subject to financial penalties.

7. Will I Have to Pay Capital Gains Tax and if so How Much?

Capital Gains Tax laws in Cyprus and the UK are different. 
                
When you sell your main residence in the UK, you are not liable for Capital Gains Tax.

However, when you sell a property in Cyprus, even though it may be your main residence, you are liable to pay Capital Gains Tax, which is charged on its disposal.

Any Capital Gain is liable to be taxed at the rate of 20%. 
                
Subject to certain conditions, individuals may claim the following deductions:

- Up to €85,430 provided it has been a private residence for at least five years prior to the sale.

- Up to €25,629 if the disposal is made by a farmer and it relates to agricultural land.

- Up to €17,086 on any other disposal.

These deductions are granted once in the lifetime of the individual, until fully exhausted and if an individual claims a combination of them, the maximum deduction granted cannot exceed €85,430.

The following categories of dispositions are exempted from Capital Gains Tax:

1. Donations between relatives up to 3rd degree of kinship.

2. Donations to Limited Companies, all the shareholders of which are members, who remain members for 5 years after the donation, 
    of the family of the donor.

3. Donations from family companies to their shareholders, but only in cases where the property gifted was originally acquired by the company
    also by way of gift.

4. Donations to Charitable Institutions or to the Republic of Cyprus.

5. Exchanges of permanent residence.

6. Compulsory acquisitions.

7. Transfers by reason of death.

8. Will I Have to Pay VAT?

As of the 13th of January 2014 and based on the provisions of the Article 17 of the VAT Law the standard VAT rate is 19%.
                
A V.A.T rate of 19% applies on all new constructions for building permits approved  after 1st May 2004 and onwards.

However, immovable properties are exempted from VAT in cases where the application for the issuance of a Planning Permit was duly submitted before the 1st of May 2004, when Cyprus became a full EU member.
            
As per the provisions of the Article 18 of the VAT Law (Fifth Annex, Table C), a reduced VAT rate of 5% is applicable for the acquisition or construction of residential properties in cases where:

- The property is or will be used as the primary and permanent residence of the buyer or the owner (the applicant) in Cyprus;

- The acquisition or the construction of the property is or will be completed before being occupied property or before the first use property;

- The applicant has not acquired any other residence in Cyprus with the reduced VAT rate;

- The application for the issuance of a Planning Permit was duly submitted after 1st May 2004 to the Authorities;

- The applicant is an adult person (18 years of age and above); as such legal entities are excluded.

The reduced VAT rate of 5% applies on the first 200 square meters of the property as per the architectural plans submitted to the relevant Authorities (building coefficient), whereas for the remaining square meters the standard VAT rate of 19% is imposed. In cases of large families (minimum of four children) the reduced VAT rate of 5% is applicable for the first 200 square meters increased by 15 square meters per each additional child over three children.

The Value Added Tax (Amendment) Law of 2016, which was recently passed by the Cyprus Parliament, ended the restriction of the imposition of the reduced rate of VAT to private residences up to 275 square meters.

It is essential to underline that in cases where the reduced VAT rate is granted, the residential property must be used as the applicant's primary residence for a period of 10 years. A person who has been granted with the reduced VAT rate, but ceases to use the property as his or her residence before the lapse of the 10-year period must notify the Commissioner of Taxation within 30 days of ceasing to use the property as a residence. The person must pay the difference in the VAT between the standard and reduced rates, attributable to the remaining period of 10 years.

Based on the recent VAT Amendment Law of 2016, buyers or owners who have been granted with the reduced VAT rate for the acquisition of one residence, can acquire another residential property and re-apply for the reduced VAT rate, even if the 10-year period has not lapsed, so long as the applicant:

- Ceases to use the property as his or her residence before the lapse of the 10-year period, and

- Notifies the Commissioner of Taxation accordingly, and

- Pays back to the Tax Department the difference in the VAT between the standard and reduced rates which were applicable at the time of the acquisition or construction of the first residence.

In all other cases, the applicant has the right to be granted with the reduced VAT for another private residence after the lapse of 10 years.
                
The reduced rate is imposed after obtaining a certified confirmation from the Commissioner of Taxation following the submission of a relevant application, along with supporting documentation. The application can be submitted by the buyer in person, or through the buyer's legal representative. In their application eligible buyers should express their declaration that the property will be used as their primary and permanent residence in Cyprus and that they have not obtained any other property in Cyprus with the reduced VAT rate. In cases where the buyer is married, the spouse should also declare that has not acquired any other residence with the reduced VAT, as the reduced rate is granted to one property per married couple.

If the property is under construction (off-plan) the reduced VAT rate application can be submitted at any time during the construction of the property. In cases of purchasing new-build properties the application must be submitted before the delivery of the property to the buyer.

As per the provisions of the Article 46 (subsection 16) of the VAT Law, applicants who make a false statement to benefit from the reduced rate are obliged by law to pay the difference in the VAT between the standard and reduced rates. Moreover, the legislation provides that such persons are guilty of a criminal offence and, upon conviction, are liable to a fine, not exceeding twice the amount of the VAT due, or imprisonment up to 3 years, or may be subject to both sentences.

The above information is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

9. Can I Get a Loan Within Cyprus?

All the main banks in Cyprus offer loans for the purchase of property in foreign currency. 
                
If you acquire through a Developer he usually has prearranged loan facilities, which can be explained to you when interest is shown in the purchase of property. Normally a deposit of 30% can facilitate a loan on the balance of 70%. 
                
Interest rates vary but as a guideline you can expect, a base (libor) rate of +2.0%. The repayment period can be up to 15 years.

10. Do I Need to Emply a Solicitor?

Although not always necessary, we do however, recommend using a solicitor. 
                
If you buy through a reputable developer there are print ready contracts. 
                
Should you wish to use a solicitor to check the contract and examine the property's details, any impediments etc, the average fee starts from  €1000 and is dependent on the type and level of services required.

11. Will I Need a Valuer/Surveyor?

Although the use of a valuer/surveyor is not always strictly necessary, we do recommend one is used particularly when buying a resale and more importantly in the case of an older property.

12. Do I Need a Residency Permit?

Within four months of the date you entered Cyprus you have the obligation by law to go personally to the Civil Registry and Migration Department (this service is for the time being, provided at the local Immigration Branch of the Police in all districts except Nicosia where a District Migration Office exists) and apply for the Registration Certificate for EU Nationals (Form MEU1 known as the Yellow Slip). Non-EU Citizens have to complete a separate form - MEU2 (more commonly known as the pink slip.
                
In order to obtain this Certificate one should submit the following:

A duly completed standard form (obtainable from Civil Registry & Migration Dept or from the local Immigration Branch of the Police) depending on the category of residence permit one is applying for (employed activity, self-employment etc.).

- A Valid Passport or ID Card
- 2 photos
- A fee of €20

Note: When applying for dependants, the applicant must present certified true copies of marriage certificate, birth certificates of children etc.).
The Certificate is issued within a short period of time from the day of application.

The application forms can also be downloaded from the website of the Ministry of Interior at www.moi.gov.cy or you may request for information at the tel. 00357 22804400 and at the electronic address migration@crmd.moi.gov.cy

One should know that a Registration Certificate is issued only if the applicant has secured a paid job in Cyprus or are self employed or you are a student or you have identified reasonable means for living in Cyprus without working. If by any chance you do not comply with the above then the Cyprus Authorities may refuse to issue the Certificate.

It should be noted that a fine is imposed in the case of non-compliance (Law N7(I)/2007) and specifically a fine of €2.562,90 to any European national who works in the Republic without being registered.

Family members will have to complete the appropriate form too, together with proof of their relationship.

13. Can I Get After Sales Service?

Our After Sales service department provides assistance to clients with the following services: 
                
- Connection of Water, Electricity and Telephone supplies;
- Purchase of household appliances and furniture;
- Building & Contents Insurance;
- Medical Insurance;
- Property Management: Cleaning, gardening and pool maintenance. 
                
You can contact our support department by sending us sending an e-mail or giving us a call.

14. Will I Have to Pay Communal Charges?

Yes,in the case of Multi ownership projects whereby a series of common use services are provided

These communal charges will vary from apartment to villa according to the quantity/quality of services available and the covered area of the property. In particular charges are calculated based on the covered area of the property. 
                
Charges will vary, from project to project and from property type to property type.

15. Other Questions?: Then please feel free to send us an Email We will get back to you within 24 Hours!


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A.T & P.E Homes (Cyprus) Ltd. is a Certified and Licensed Estate Agent Company: Registration No.: 808; License No.: 147/E.