For those of you unfamiliar with the Republic of Cyprus and the property there the following introduction should give you a good feel for the attraction that has brought so many other foreign buyers to make this their second home or new place of residence.

Cyprus is the third largest island in the Mediterranean and one of it’s most popular tourist destinations. Cyprus enjoys an average temperature of 70F and 300 days of sunshine per year. And boasts the lowest rainfall of the Mediterranean Islands. The beautiful landscape of Cyprus is characterized by mountains, plains and beaches.

Sunshine, award winning beaches, swimming, skiing and scuba diving are just a few of the attractions to be found in this mythical birthplace of the Greek goddess of love Aphrodite and Adonis. The Cypriot people are known for their friendliness and English is widely spoken. And with of 10,000 years of history there is plenty to explore. Cyprus has one of the most advanced economies in the region and became a member of the EU on May 1st 2004.

A number of factors have also made this island a popular tax haven, including low taxes, a stable democratic government and a legal system based upon British Law. This is demonstrated by the fact that deposits have grown recently by individuals and corporations from a number of countries.

Low crime rates and virtually no unemployment has also attracted many people to make this island their new home. While a few years ago 70-80% of the buyers were English, it is now more diverse and seeing many buyers from Russia, Eastern Europe and the Middle East.

Most property buyers here are buying for a lifestyle change and not purely as an investment. This coupled with the fact the large down payments (typically around 30%) have been required has helped to keep repossessions low and keep the housing market intact despite the global economic situation. Additionally limited room to build, low interest rates and cost of living are expected to help protect Cyprus from the worst of the on going credit crunch. Early this year the government gave permission for the development of 14 new golf courses to assist in boosting the property and tourism industries.

Types of properties available range from new off plan apartment developments and townhouses with ocean views, to countryside villas and luxury mountain homes with private pools.

Capital gains taxes; On disposal of the property there will be capital gains tax at the rate of 20% on the again. The first 10,000 Cypriot Pounds (or 50,000 Cypriot Pounds in the case of one’s private residence subject to certain conditions) is exempt and there is also an indexation allowance. However there is no tax if the property was acquired between August first 1980 and July thirteenth 1990 with foreign exchange imported into the republic.

Transfer fees are applicable when the immovable property is registered in the name of the purchaser by the Land Registry Office.

Estate tax has been abolished since January first 2000.

The purchaser is liable for the payment of the transfer fees on the basis of the value of the value of the property as assessed by the District Land values.

Stamp Duty
The purchase contract should be stamped within 30 days of it’s signing.

Author Bio: Cleo Lucas is the General Manager of Just Cyprus. You can read more articles and information relating to buying property in Cyprus at http://www.justcyprus.eu/

Category: Real Estate
Keywords: property in cyprus