The procedure of purchasing real estate in Cyprus

Sequence of actions when buying real estate in Cyprus:

After you decided to buy some real estate in Cyprus you will need:

1. To make deposit payment of 2 000-5 000 euros for the selected property in Cyprus. This can be done in Cyprus as well as in our office in Russia. Immediately                               after this object is removed from sale for 1 month.

! All the remaining amounts of payment transactions you make only on the territory of Cyprus.

2. After that the lawyer prepares the contract. This service is paid by you (the buyer) and will constitute approximately 1% of the total value of the property in                                      Cyprus.

3. You (the buyer) make the first payment of 30% of the value of the property in Cyprus and sign the contract.

4. The contract is sent to the Department of Registration of land holdings (Land's Registry) to obtain prior approval (Specific Performance) for the implementation                            of buying the real estate item in Cyprus. The department checks the titles of the property being sold with respect to sale, mortgage, lease or other restrictions                                on their use.

5. If you need a mortgage for the remaining 70% of the value of property in Cyprus, you are to apply to the Bank of Cyprus in this period. You can count on                                        getting a mortgage for up to 20 years under 3,75-4% per annum.

You should submit the following documents:

• Real estate in Cyprus purchase contract
• Passport
• extracts from Russian accounts
• PIT 2 reference
• statement on payment of utility bills for the last 6 months

Bank's decision will be made within one month (it should be noted that in Cyprus it is easy for Russian citizens to get a loan for real estate, as well as buying property in            Cyprus for an amount of 300 000 Euros. You have the right to apply for residence permit in the country).

6. After receiving confirmation of the Department of Registration of land holdings, you should open a bank account for payments to the seller of the real estate                                 item in Cyprus. To do this you should apply to the bank in the prescribed form.

7. Next, you pay Stamp Duties for the legalization of buying real estate in Cyprus in the Inland Revenue Department at 2.56 euro per thousand in value of                                          property in Cyprus to 170.860 euros (about 0.15% of the cost of Property). If the price is higher, the fee increases to 3.41 euros per thousand (about 0.20% of                               the value of property). Stamp duties should be paid within 30 days after signing the contract.

8. Permit is issued by the Council of Ministers to acquire real estate in Cyprus. This is absolutely a formal procedure. It will cost $ 575 for a contract.

9.In case of buying property in Cyprus during the construction phase you arrange to hire the remaining 70% until completion of the chosen property in Cyprus.

10. After two or three years you will get a permanent certificate of ownership (Title Deeds).

11.At the same time you pay the registration fee for a permanent certificate:

• at the cost of property in Cyprus up to 85 400 euros - 3%
• at the cost of property in Cyprus from 85 401 to 170 860 Euro - 5%
• at the cost of property in Cyprus from 170 861 and more - 8%

The property certificate can be issued for several family members, which will reduce the amount of the registration fee.

Having become the owner of a real estate item in Cyprus you carry the following annual costs:

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1. annual property tax for an amount determined in accordance with the purchase price of property:

• 170 000 euros - is not subject to the tax;
• from 170 001 to 427 000 euros - 0,25%
• from 427 001 to 854 000 euro - 0,35%;
• from 854 001 and above - 0,4%.

2. inheritance tax was repealed in 1.01.2000

3. tax on capital gains is 20% of the profits arising through sale / resale of your property in Cyprus

4.Value Added Tax (VAT) is 15% levied on all new properties in Cyprus since 2004

5. Incidental costs: electricity (depending on usage) -70,00-220,00 euros every 2 months, the water (depending on usage) - 25,00-50,00 Euro every 4 months; sewage                  (depending on the type of use) - 95 , 00 euros per year, payment for service - in the flat it is 170 ,00 - 850, 00 euro per year (prices depend on the location and the                      complex of buildings).

Our employees accompany you on every step of the acquisition and registration of real estate in Cyprus. For customers who buy our properties in Cyprus, we guarantee full service and no hassle.