Due to accession to the E.U. in May 2004, the below information is subject to change.

Q: What makes Cyprus such an ideal place for non-Cypriots to retire, purchase a holiday home or establish an offshore company?
A: Cyprus has something for everyone, young and old and also the business entrepreneur.
Cyprus has a European standard of living, a relatively low cost of living, a low crime environment, an excellent communication system, excellent professional services, low tax for non-Cypriot residents and offshore companies.

Q: Can I obtain a job once I become resident of Cyprus?
A: Since Cyprus joined the EU in 2004, citizens of the European Economic Area (EEA), which includes all EU countries, are guaranteed freedom to work in Cyprus exactly as they are in all EU countries.

Q: Do I have to pay tax once a resident of Cyprus?
A: Cyprus has double taxation treaties with most European countries as well as a lot of other countries throughout the world. For example, this means that U.K. citizens retiring in Cyprus can receive pensions and investment income free of U.K. income tax. This includes both public and private sector pensions. For furthur information on Cyprus Double Taxation Treaties please see Cyprus Inland Revenue website
Taxation is still low in Cyprus compared to other European countries despite recent tax reforms due to Cyprus’ accession to the E.U.
You would be considered a resident if you live in Cyprus for more than a total of 183 days a year

Income 2010 Tax Rates % Tax Amount

Up to € 19,500 Nil ------
€19,501 - € 28,000 20% € 1,700
€ 28,001 - € 36,300 25% € 2,075
€ 36,301 & above 30%

The Tax Office in your local town in Cyprus will be happy to advise you on which option would be best for your personal circumstances.

 

Q: How much property can a non-Cypriot purchase?
A:. Under current legislation, any Cypriot as well as E.U citizen who have their permanent residence in Cyprus are allowed to register immovable property in their names without any restrictions. The residential status is ascertained by the District Offices when a person resides in Cyprus for a total period of 183 days per year or more.

Since Cyprus joined the European Union (as of May 2004) most of the procedural restrictions upon buying property have been lifted for EU citizens. All the restrictions will eventually be lifted after April 2009. Until then EU citizens who are not permanent residents of Cyprus as well non -EU citizens are entitled to a freehold ownership of either an apartment, a house, or a building plot or land. In the case of EU citizens the property size is unlimited contrary to non EU citizens who may acquire property up to 4.014 square meters (the equivalent of three donums).

Further, in the case of E.U citizens who are not permanent residents of Cyprus as well as non E.U citizens wishing to acquire property in Cyprus, authorisation is required from the Council of Ministers which is granted as a matter of course to all bona fide purchasers if there is proof that the purchase was with foreign funds, which were imported to Cyprus. The application must be submitted after the contract of sale is signed and it normally takes about 6-8 months to be issued. In the meantime, the purchasers can take possession of their property without restriction and live in it or rent it out as they are the legal owner of the property according to the law.

Legal entities established in E.U. that have their headquarters and registered office in Cyprus, do not require permission to buy any immovable property. Legal entities established in Cyprus and controlled by citizens of the E.U. require permission to buy immovable property in Cyprus as well as any other legal entities.

Q: Are the properties sold freehold or leasehold?
A: Most of the properties in Cyprus are freehold title. There is some leasehold property available for sale but you will be advised accordingly.

Q: What other costs are involved after the purchase of a property?
A: The biggest cost involved is the Land Transfer Tax. It works on a scale of fees as follows:
Value of Property Tax %
From 0 to € 85430 3%
€8431 to €170860 5%
€ 170861 upwards 8%.

Stamp duty is also payable at £1.50 per thousand on the purchase price of the property up to £100,000 CY. Thereafter the rate becomes £2.00 per thousand.
You will also pay legal fees of approx. £1000 depending on the value of the property. This is money well spent. Good legal advice and representation is very highly recommended.
Immovable Property Tax – The registered owner of a property is liable for this annual tax and is based of the following scale:

Value of Property Annual Tax ( € per thousand)

Up to €170860 - Exempt
€170861- € 427,150 - 2.5
€ 427,151 -€ 854,300 - 3.5
Over € 854,300 - 4.0

Capital Gains Tax – This tax is applied at the rate of 20% on gains arising from the sale of immovable property. As in the U.K., there are certain expenditures which can be offset against the gains to reduce the tax paid. Also the following lifetime allowances are available to individuals:

Allowances

- The first € 17086 of gains arising from the sale of any property

- The first € 85430 of gains arising from the sale of a house used by the owner for his own permanent habitation (subject to conditions).
The above allowances are not available separately.
The other costs involved are: Electricity connection approx .€ 75, Water connection € 200 and Telephone connection €100. The above amounts are only security deposits, which are refundable with the termination of the service.

Q: Can I bring my pet with me to Cyprus?
A: By securing an import permit from the Cyprus Veterinary Services, pets may be brought into Cyprus.
They must be kept under house quarantine for six months or in a previously designated area where theVeterinary Services Department can inspect them at intervals.
This quarantine does not apply to pets when certain document/certificates such as the following are submitted:
- Examination certificate stating that pets were clinically examined 72 hours prior to exportation.
- Confirmation that the pets were kept in the exporting country since birth or the last six months prior to shipment, with no outbreak of rabies.
- Pets were treated against echinococcosis/hydatidosis prior to shipment.
- Pets were treated with an insecticidal preparation against ectoparasites prior to shipment.
Full information can be obtained from the Veterinary Services – Tel:+357 22 805240/1, Fax: +357 22 332803

 

These are just a few of the questions, which are normally raised by our clients. However, if you have any further queries,please just ask.
E-mail: naresti@cytanet.com.cy

 

For a speedy sale, efficient and friendly service, I highly recommend Aresti Estates.  Neville sold an apartment for my disabled friend in Spring 2010 within a few weeks, after it had been with another agent for two years.
Keep up the wonderful work.
Mick

Although we haven’t met, you were on holiday in Australia when we were in Cyprus, we feel we must congratulate you on your staff. With their warmth & friendliness they certainly put us at our ease and made it a pleasure to talk business.
A special mention must go to Helen, who at no time placed us under any pressure, but her professionalism in answering our questions, her openness and frankness and her abundant patience did her and your business credit.
Please feel free to use this as our personal recommendation of your Estate Agency.
Joan and Tony Allen

I just wanted to drop you a line to thank you for all your help now that we are settled into our new holiday home. We are all up and running now and the shops you recommended were very helpful, the air-conditioning especially has made a big difference.
Your experience and professionalism really made it a much easier task than I had at first expected and your help and flexibility during and since the purchase have been first rate.
I would have no hesitation in using your services in the future and would recommend other people to do the same.
Good luck for the forthcoming property boom when you join the European Community.
Mike Daly

We started looking for a property in Cyprus in November 2000. We spent days with developers, all showing us property that were far more than we had told them we could afford. We were very disheartened by the whole thing, when we saw Neville Aresti’s office in Tombs of the Kings road.
We decided to go in and see if he could help us. It was a breath of fresh air! The girls in the office were really friendly and helpful, and it was immediately obvious to us that Neville really knew his business.
He spent a lot of time with us going through the various options, and then he took us on a viewing of the properties he had within our price range. We found a property which was exactly what we were looking for, and we put in an offer which was accepted. Our purchase was a particularly difficult one, because it was the subject of a divorce settlement. It took us 18 months to actually purchase the property, and in all that time Neville and the girls were there for us. Writing letters and making phone calls on our behalf. He truly cares about his clients and not just about meeting sale targets.
We now have a beautiful home in Cyprus, and a very good friend in Neville. We know exactly what a big decision it is to buy property in another country, and how bewildering it can be. The best advice we can give you is to go and see Neville and the girls, you can trust them, and they will do their very best to help you achieve your dream.
Mark and Gill Ellis

Why I Chose N. Aresti Estate Agency Ltd.
I owned an apartment in Kato Paphos for 11 years, and when I decided to buy a larger property I knew where and where not I would live. I was shown properties by other Estate Agents and did not like the way they were trying to sell me what I did not want, or locations I did not like.
I was given Neville Aresti’s name by a friend who knew him. I stayed with this Estate Agent because:
He only showed me properties within the specifications I gave him
EVERYTHING he told me about a property proved correct when I checked with the Land Registry Department or Planning Dept.
He NEVER attempted to change my mind about location or budget.
I was ALWAYS accompanied by him or one of his staff, whilst viewing properties, and even when I had paid a deposit on the property I bought, I was NOT ALLOWED into the property unaccompanied.
Neville Aresti and his staff were ALWAYS punctual.
The Company contacted the various owners and came back with the answers on the day and time they promised.
The property I bought through this Agency is EXACTLY what I was promised with NO HIDDEN NIGHTMARES!
When buying and selling property in Cyprus, I always remember what a Lawyer said to me in 1989, after dealing with yet another client who had “bought” a property from an unregistered non-professional person: “they come to me when they really need a priest!”.
Isobel Castle

Sehr geehrter Herr Aresti,
Nachdem wir uns in unserem schoenen Haus etabliert haben und uns sehr wohlfuehlen, moechten wir uns nochmals fuer die vorzuegliche Abwicklung beim Kauf des Hauses bedanken.
Wir werden sie in unserem Bekanntenkreis bei etwaigem kaufinteresse waermstens empfehlen. Besten Dank nochmals; die erwiesene Aufmerksamkeit werden wir stets zu schaetzen wissen.
Mit Freundlichen Grussen,
Jenny und Peter Reuter

Just a short note from Shaun and Louise to let you know we have now settled into our villa in Mellisovounous. We had a few teething problems, but nothing very much, and we have sorted most of them out now.
You were a great help in assisting us to find the right property, and if either Louise or I can be of any help to you in the future, perhaps as an unbiased reference to any potential customers you may have, then please feel free to use us as a reference.
Shaun Collins

Many thanks for the help you have given us with purchasing our new apartment in Chloraka. It was a pleasure to be shown a range of apartments that was of interest to us and it was a difficult choice in the end to decide which we should purchase.
With your help we managed to come to Cyprus for only a week, view selected properties, make an offer and arrange the necessary legal paperwork before returning to the U.K. A very impressive service.
…………..Many thanks also for the help and advice you have given us. It is invaluable.
Graham & Frieda Williams

Marvellous establishment, extremely helpful and friendly. The staff are professional and are willing to assist you at all times. Great service in all aspects. To be highly recommended. We call them our friends.
H & B Barnett

This is just to say a very warm ‘thank you’ for all the help you gave us, when we were looking for property in Paphos. We really appreciated the amount of time and trouble you took to show us plots and properties. We would like to let you know that we have now found somewhere and we are looking forward to being resident in Paphos sometime next year.
I do hope we will meet again sometime.
Carole Ashplant

My wife and I want to thank you for helping us to find and purchase our apartment. We gave you our price range and you showed us a selection of properties. Unlike the property developers that I tried to deal with last year, you allowed us to view at leisure and to take our time to discuss and decide.
Although you obviously wanted to make a sale we never felt under any pressure to buy. To quote you “I want a happy seller and a happy buyer”. You succeeded for us. You were honest with all the fixed costs, helpful with the lawyer and you have seen to the small details that we asked.
It has been a pleasure to do business with you and hopefully we have made a friend in Paphos.
Malcolm and Karen Folley

Illegal “sale” of Greek Cypriot property in the area of Cyprus under Turkish Military Occupation.

As a result of the illegal Turkish invasion and occupation of the northern part of Cyprus, approximately 200,000 Greek Cypriots, who lived in the area currently occupied by Turkey, were compelled by force to leave their properties and to move to the government controlled area. Their properties were then illegally expropriated by Turkey and its subordinate local administration and passed on mainly to Turkish mainland settlers who were brought in from Turkey as part of the illegal colonization policy of the occupied area of Cyprus by Ankara.

Since then, the U.N. Security Council has adopted a series of resolutions (especially 541 (1983) and 550 (1984)) recognizing the Government of the Republic of Cyprus as the only legal Authority in the entire territory of the Republic and calling “upon all states not to recognize the purported state of the “TRNC” set up by the secessionist acts… [and] not to facilitate or in any way assist the aforesaid secessionist entity”.

Furthermore, the case of the violation of the human rights of Greek Cypriots by Turkey, in general, and of their property rights, in particular, was brought before the European Court of Human Rights. In the four cases that the ECHR issued its ruling, namely the Loizidou v Turkey judgment (1996, 1998), the Cyprus v Turkey judgment (2001), the Michaelidou Developments Ltd and Tymvlos v Turkey judgment (2003) and the Demades v Turkey judgment (2003), the Court found Turkey in complete violation of the fundamental right to property of the Greek Cypriot legal owners.

The aforesaid judgments of the ECHR clearly set out the following points that need to be borne in mind:

1) The administrative practice applied by the subordinate to Turkey local administration in the occupied area of Cyprus of issuing “title deeds” to the new occupants of properties belonging to Greek Cypriots situated in the occupied area of Cyprus is based upon the so-called “legislative” and “constitutional” provisions of the said administration, which in no case whatsoever can be attributed any legal validity.
2) Greek Cypriot owners cannot be deemed to have lost their properties and have always remained and will continue to remain the ONLY true and lawful owners of their properties in the occupied area of Cyprus.

The only recent and belated compliance of Turkey with the 1998 ECHR judgment in the Loizidou v Turkey case undeniably proves that Turkey accepts the ruling of the Court, namely that Mrs. Loizidou, and all other dispossessed owners for that matter, are still “…the legal owner[s] of the land…” and that Turkey “actually exercises detailed control over the policies and actions of the authorities of the “TRNC”..[and] that her army exercises effective overall control over that part of the island”.

Further to the above, it must be stressed that the only legal authority in Cyprus is the Government of the Republic of Cyprus and no other organ can exist with the legality and the authority to execute any act in the realm of public life, including the transfer of property rights.

Moreover, it should also be borne in mind that purchasers, particularly those domiciled in the UK, who essentially “buy” property which does not belong to the “seller”, run the risk of being sued at the any time by the Greek Cypriot owners, many of whom are also domiciled in the UK, before the British Courts for trespass, or conspiracy to commit trespass, to such properties. Similar actions based on tort could very well be brought before the Courts of the Republic of Cyprus.

Finally, even the Annan Plan acknowledges the right of all dispossessed owners to their properties in the occupied area of Cyprus by virtue of the fact that it provides them with the right, as lawful owners of their properties to decide on either the reinstatement of their property or their full compensation.

Therefore, entering into a “deal” for the purchase of immovable property belonging to Greek Cypriots situated in the area of Cyprus under Turkish military occupation, constitutes an ILLEGAL ACT which could expose the “purchaser” to grave legal and financial consequences. In addition to that, purchasers have no legal title deed after the conclusion of such a “deal”, as no title can be legally obtained from the current “sellers” who are not the legal owners of the said property.

The present message sets out a TRUE LEGAL position in this matter, as up held by an independent and internationally recognized judicial body, namely the European Court of Human Rights. It does not contain any political argumentation, nor is it intended to convey political messages. It must, however, be borne in mind by persons who intend entering into such “deals” and by those who have already done so, that Greek Cypriot property owners have been the victims of flagrant violations of their inalienable right to enjoyment of their properties and that for every day that such violations continue the lawful owners of properties are determined to make use of every legal tool before national or international organs to protect their rights against any person or entity violating their rights