BANK ACCOUNTS IN CYPRUS
You will find many branches of three large banks (Bank of Cyprus, Laiki Bank and Hellenic Bank) in all the major towns, and in some smaller locations.  There are also a few branches of other international banks in the major towns.

If you are buying a property in Cyprus, you will probably wish to open an account at a bank in Cyprus, and deposit funds there to pay for your property.  You should retain paperwork involved in making payments, since you may later need to prove to the Cypriot authorities that the funds for your property came from outside Cyprus.

Your estate agent or lawyer in Cyprus may well provide an introduction for you to a local branch of a bank, to assist you in opening an account.
 

BUYING AND OWNING PROPERTY IN CYPRUS
This note is primarily intended for UK citizens, but also applies to other European Union nationals.

The acquisition of real estate by foreigners in Cyprus.
(For the sake of simplicity, "real estate" is called "property" in the following notes).

1.  The Legal Framework

The removal of most restrictions since Cyprus' accession to the European Union (EU) in May 2004 has resulted in a further influx of demand and market activity causing local property values to increase, although the prices remain comparatively lower than those of other popular destinations such as France, Italy and Spain.  All the indications are that this upward movement of values will continue and at worst remain stable for a period.

The law regarding property in Cyprus changed when Cyprus joined the EU on 1st May 2004.  Although non-Europeans remain subject to the same restrictions that existed before Cyprus joined the EU, such restrictions have been lifted to a considerable extent in the case of European citizens.  This new law appears to differentiate between two categories of Europeans:-

A.  To Europeans nationals or legal entities not permanently resident in Cyprus, some restrictions still apply.  They must obtain a permit from the Council of Ministers in Cyprus to own a residence in Cyprus;  but if they wish to buy property which is not a residence (e.g. land, or business premises), then no such permit is required;  however if land is purchased, a permit would be required subsequently to build a residence on the land.  A separate permit is required for each residence, if more than one residence is purchased.

B.  To European nationals or legal entities permanently resident in Cyprus,  there are no longer restrictions imposed when purchasing property.

All restrictions for Europeans (whether or not resident) who purchase property in Cyprus will be lifted by 2009.

 
2.  The Legal Formalities

         Cy£2.00 per thousand pounds for properties of higher values.

In the case of a mortgage, the registration fee is 1% of the amount secured plus the relevant stamps.

If stamp duty is paid after the time frame of 30 days expires, an additional penalty is imposed.

2.4  Filing.  Within 60 days of signing the contract, the same must be filed at the District Lands Office until the parties are ready to transfer title of ownership. This will adequately preserve the purchaser’s legal rights pending other formalities being dealt with.

2.5  Council of Ministers (COM) permit.  Where a COM permit is required, a prescribed form must be submitted to the local District Administration Office along with all necessary supporting documents.  The permit cannot be applied for until a purchase contract for the property has been signed.  It can take up to one year for this permit to be issued, but that does not mean that you cannot occupy your property before issue of the permit.  

As a general guideline, the following points are worth noting:

# The real estate will be used as a residence and the building plot does not exceed 4,012.5 square metres, or
# Where the applicant is a company, it will be used for professional purposes, and the legal entity has a sound status, identifiable ownership and clear business, or
# Physical persons do not have a serious criminal record in their country or in Cyprus and have the financial means to support themselves in Cyprus, or
# The COM believes that any industrial project proposed will be for the benefit of the economy of Cyprus and the production involves the use of new technologies or technical knowledge.

2.6  Transfer of title.  Unless and until a COM permit is secured and separate title deeds have been issued, transfer of title (ownership) cannot take place.  Where the parties are ready, the transfer can take place at the local District Lands Office on payment by the purchaser of: any balance of purchase price due to the seller; the transfer fees, and other taxes.  Transfer fees are calculated on the market value as at the date of purchase, as follows, assuming that the property is to be registered in one name:

Examples:

For a property with market value Cy£75,000, the fee is calculated as 3% of 50,000 + 5% of 25,000 = 1,500 + 1,250 = Cy£2750. 

For a property with market value Cy£125,000, the fee is calculated as 3% of 50,000 + 5% of 50,000 + 8% of 25,000 = 1,500 + 2,500 + 2,000 = Cy£6,000.

Where the property is to be registered in joint names, and the market value exceeds Cy£50,000, the total fee payable is reduced, since each joint owner is regarded as owning his/her proportionate part of the property, and the fee is levied separately on each part.  For example, if a couple were buying a property having a  market value of Cy£100,000, each would pay 3% on Cy£50,000, i.e. a total fee of £3,000, whereas for the same property to be registered in one name, the fee would be 3% of 50,000 + 5% of 50,000 = 1,500 + 2,500 = Cy£4,000.

2.7  Immovable Property Tax.  The registered owner of the property is liable to an annual immovable property tax calculated on the market value of the property as assessed on the 1st January 1980:

The seller as the registered owner usually pays the immovable property taxes and at the time of transferring ownership can seek reimbursement from the purchaser for the period starting from from the date of delivery i.e. the date upon which the purchaser is handed the keys or as otherwise specified in the contract.

Conclusion
 
The formalities described above merely outline the basic steps that may have to be taken in any given situation but they are by no means exhaustive.  Each transaction must be handled according to all the circumstances.  The complexity of the local legislation relating to acquisition of real estate renders it necessary to seek at the outset professional legal advice and assistance in order to avoid any adverse consequences that could arise where sufficient care is not taken.

The above notes in this section on buying and owning property in Cyprus are based on a paper entitled "Acquisition of real estate by foreigners in Cyprus" by Ms Andria Andreou, LL.B., Solicitor (UK), of Patrikios Pavlou & Co., Advocates - Legal Consultants, of 'Patrician Chambers', 332 Agiou Andreou Street, P.O. Box 54543, 3725 Limassol, Cyprus, Tel: +357 25 871599,  E-mail: aandreou@pavlaw.com  website: www.pavlaw.com.

 
CAR HIRE
Car hire rates vary according to time of year and size of vehicle.  Rates are generally about double during the summer season, compared with winter rates.  The rate for a small car varies between about Cy£12 per day in winter and Cy£25 in summer.

 
DESCRIPTIONS OF PROPERTIES
We do our best to ensure accuracy, but we do not guarantee that every detail is correct, especially in relation to new developments, where the agents concerned are reliant on details provided to them by developers, and the meanings of some descriptive terms used, sometimes vary from developer to developer.  For all the information on this site about individual properties, we depend on details provided by the estate agents who supply us with this information, and therefore we do not guarantee the accuracy of such details;  visitors to this site who are interested in any property, are advised to check the details with the estate agent.

British buyers unfamiliar with properties in Cyprus should note the following points in relation to differences in terminology.

Parquet flooring is often a term used to mean laminate flooring;  it is not generally what is known as parquet flooring in the UK.

Covered areas/interior areas.  In the UK, the term interior area or floor area is normally used to define the area of floors in the enclosed rooms of the building.  Cypriots do not so often regard this as a useful measure, for the style of living and style of buildings reflect the fact that much more time at home is spent outside the enclosed rooms, for example on verandahs, where it is commonplace to eat meals, and to sit and relax.  The same goes for covered patio areas.