Cyprus

Properties in Cyprus provide a lucrative year round rental potential because of the climate and the excellent location. Estimated annual gross income from these Apartments will be guaranteed. Owners are offered use of the apartment for a three week period per annum during the guaranteed rental period in the 'off peak' season, or a three week period in the 'peak' season, these periods do not accumulate annually, the managing company requires 8 weeks prior written notification, from the owner. Kindly note: this offer is subject to a reduction in the gross rental returns, at the time of notification.

Management and maintenance fees

Generally very low in Cyprus as labour costs are inexpensive and an average monthly cost of +/-2% of property cost per metre squared per year is to be expected.

Payment Structure

The following Schedule of Payments is available:

3% - *to reserve the property in your name and take the property off the market

27% - *on signing the contract

70% - * 8 weeks on signing contract

^*the above are Subject to bank requirements at time of purchase

Finance

Assisted Mortgages are available through our finance partner, the criteria of which are as follows:-

Currencies Available - £ Sterling, Cyp£ Cypriot Pound & Sfr Swiss Franc

Term - maximum 20 years

LTV Available - must not exceed 80% LTV of valuation or purchase price - whichever is the lower

Assisted Mortgages

Some local banks are able to provide 70 to 80% of the purchase price for pre-qualified developments and assisted Mortgages are available through our finance partner, subject to bank requirements at the time.

The Legal Process:

You will be put in touch with a Cypriot solicitor; they have been recommended by our agent in Cyprus and are in no way tied to the developer.

Contract of Sale and Lease

Under Cyprus Law, such contracts must be in writing. It is also advisable that contracts of sale be deposited in the relevant District Lands Office within two months after the signing of the contract, so that the purchaser's right to pursue the remedy of specific performance in the event of breach can be protected. Leases exceeding 15 years can be registered and registration should be affected within 3 months of the signing of the lease. Title deeds issued by the District Land Office denote ownership in Cyprus. All contracts must therefore provide for the transfer and registration of the property in ones name and for obtaining a title deed.

Exchange Control

Under the new regulation in operation, approval of the Central Bank of Cyprus is not required any more on the transfer of property to expatriates. Furthermore, on the sale of property, immediate exportation of the whole amount of the purchase price value is allowed.

Cyprus Tax Reform - International Perspective

Tax legislation effective from 1 January 2003 aims to conform to European Union law and EU Code of Conduct and abide by its commitment to the EU to eliminate harmful tax practices. With the new legislation, Cyprus maintains and enhances its competitiveness as an international financial centre. It remains a suitable location for investments to and from Russia, the CIS and Eastern Europe. At the same time, having the lowest tax regime in the EU, it becomes a stepping-stone for investments to and from the European Union. International Business Companies (IBCs) will no longer be taxable by virtue of their registration in Cyprus but instead they will be considered tax residents if they are managed and controlled in Cyprus. The 10% corporate tax will give Cyprus the lowest rate in the EU, after Ireland (12.5%), with the (very new) exception of the Isle of Man, which recently announced zero rates.

Advantages offered to International Business Companies [IBC's]

A great degree of respectability exists amongst companies registered in order to secure tax incentive or tax haven countries; Cyprus is not black listed in any country in the world.

There will no longer be a distinction between local companies and International Business Companies (IBCs). Their profits will be taxed at the flat rate of 10% as from 01/01/2003, which is the lowest in E.U.

100% tax exemption for International Businesses and Partnerships, whose management and control is exercised abroad and are deemed as non-residents.

50% exemption on interest receivable.

No withholding tax on dividends, royalties distributed and interests payments.

No capital gains tax regarding profits derived from the sale of property abroad, (land, shares etc except on sale of immovable property situated in Cyprus).

No V.A.T. on sales or services rendered abroad.

Freely transferable accounts of any currency may be kept either in Cyprus or anywhere abroad without any exchange control restrictions.

No exchange control restrictions once the approval for the registration of the company is granted by the Central Bank.

For Further information, please complete this form and we will get back to you.