Scarifoza Developments Ltd believe that from the day you first have thoughts of buying whether it be a holiday home or your future home here in Cyprus, you should be fully aware of the legal factors before making that move

GOVERNMENT SYSTEM
The legal system is influenced by the European system with independent strength practised by the Judiciary with an elected President as head of state spanning over a 5-year election period.

INTERNATIONAL RELATIONSHIPS
Cyprus is a member on the Council of Europe, the British Commonwealth, the Non-Aligned movement, the United Nations and from May the 1st 2004, Cyprus becomes a full member of the E.U.

BANKING SYSTEM
The Islands Banking System is influenced by the British procedures and is professional and well structured. Foreigners have the advantage of opening a foreign account as well as a local account. Most Cypriot banks have international branches scattered around the world. All credit cards are welcome on the Island

LEGAL SYSTEM
The legal system is based on the Anglo Saxon system. The contracts are all in English, which is spoken by 80 percentage of the Island besides Greek. Our Land Registry Department is very thorough and has the most advanced system in Europe. Purchasers are therefore secure with regard to the title deeds.

MEDICAL SERVICES
The standard of medical services on the Island is very high. Our hospitals, medical centres and clinics offer the latest technology and facilities. Doctors of varied faculties are available all over the Island and their fees are low compared to the rest of Europe.
International medical care insurance is available for foreigners living in Cyprus. Our pharmacists are well informed and professionally trained. Most pharmaceuticals are available and can be purchased over the counter.

LANGUAGE
With Cyprus having been a British Colony, this influenced nearly 80 percent of the locals to speak English as their second language. You will notice that street signs, areas, and directions are all in English. With the Islands incline in the tourism industry, knowledge of German, French, Russian and other European languages has increased.

EDUCATION
In Cyprus we have pre primary, junior and secondary schools, which cater for Cypriot and Foreign students. There is the well-known International School in Pafos, which is well established and renowned for their high standard and excelling results.

PETS
If you wish to bring your pets they must have all the necessary vaccinations. Dogs and cats are allowed on the Island provided that a license has been obtained from the Department of Veterinary Services, which is situated in the capital, Nicosia.

OWNERSHIP OF PROPERTY
The majority of properties are freehold in Cyprus. As a non-Cypriot, ownership of over 4000 square metres is permitted.

Finance and mortgage
Mortages are readily avaliable subject to status

RATES, FEES & PROPERTY TAXES
Property taxes, rates and fees
Property transfer tax fees are vital in order to transfer FREEHOLD ownership to the name of the possessor. This is done once the relevant Government Authority has issued the title deeds and the purchase has been completed.

The value of property
Transfer fee rate in CY Pounds per hundred %
Up to 50, 000 – 3%
From 50, 001 – 100,000 – 5%
Over 100,000 – 8%

Example

CYP	70,000	=CYP 1500
CYP	50,000 3%	=CYP 1000
Next	20,000 5%	=CYP 2500

Should you be purchasing in joint names, the operative value for the calculation is halved.

Example

CYP	70,000	=CYP 1500
CYP	35,000 3%	=CYP 1050
Next	35,000 3%	=CYP 2100

THE TITLE DEEDS
The transferring of the ownership from Vendor to Purchaser is undertaken by a procedure through the Cypriot Land Registry Office, this can be done by the purchaser in person or by appointing a third party with Power of Attorney. The transfer requires two permits:
A permit from the Council of Ministers
A permit from the Central bank of Cyprus
These permits can be obtained from the Cypriot authorities.

IMMOVABLE PROPERTY TAX
The annual property tax is calculated on the market value of the real estate as from the 1stof January 1980. Certain immovable properties are except.

What the annual property tax amounts to in CYP pounds and the rate per thousand %.
100,000 exempt

100,001 – 250,000 2,0
250,000 – 500,000 3,0
Over 500,000 3,5

CAPITAL GAINS
Should the property be sold, capital gains tax will be payable at the rate of 20% on the acquisition the first CYP 10,000 being exempt for each person. There is also an independent status allowance.

With this allowance the seller is entitled to an additional allowance, regarding the transfer fees paid, the inflation rate per year and any additional costs made to the property are exempt up to Cyp 50,000 if the owner resides in it continuously for at least a five-year period prior to removal.

STAMP DUTY
The buyer is liable for the payment of the stamp duty at the rate of CYP 1,50 per thousand up to the value of 100,000 CY pounds and thereafter at the rate of CYP 2,00 per thousand. This should be paid within the 30 day period provided once the signing of the contracts have taken place and Scarifoza Developments will, at the purchasers request, pay the amount and then debit his/her account.

Example

CYP	150,000	= CYP 150
CYP	100,000 0,15%	= CYP 100
CYP	50,000 0,20%	= CYP 250

ESTATE DUTY
The estate duty tax was abolished as from the 1st of January 2000.
Refer to law number 78(1)/2000).

LOCAL AUTHORITY RATES AND TAXES
Approximately, it works out to CYP 50 – 150 per year varying on the size of your property. This tax is for your street lighting, sewerage and refuse collection etc. The usual utilities like water, electricity and telephone are payable individually according to your consumption on the metre reading.

Cyprus is exclusive when it comes to the taxation aspects of residing on the Island. If you are retired and drawing a pension you are exempt from all withholding taxes and may be taxed at an actual rate of maximum 5% or less depending on income after a liberal allowance (presently CYP 6,000 per person). Further, Cyprus has Double Taxation Treaties with many other countries including Europe, safeguarding its residents from paying taxes in both countries. This is an opportunity for citizens of those countries to benefit of the low rates in Cyprus.

VALUE ADDED TAX (VAT)
A revised flat rate of 15% was introduced in May 2000 on goods and services. Real Estate is currently excluded from VAT along with most food items, essentials and medicine.

DUTY FREE PRIVILEDGES
There is no import duty on vehicles and retired couples have the advantage of an additional concession of two duty free cars.
Personal possessions, household, furniture etc can be imported free of any taxes provided they are for the individuals use and they are not brand new, demonstrating previous usage.

SELLING YOUR PROPERTY
Should the purchaser wish to sell a property in the future, the investments/profits from the sale can be repatriated easily to the value of the purchase price including amounts spent on improvements and embellishments to the property.
Profits can be gained plus the interest earned. Cypriots and foreigners can sell their properties to either a local or a foreign purchaser.