Information about Cyprus


  



Introduction
Regional Locations
The buying Process
Legal Issues to Consider
Financing a property purchase
Investment Potential
Economy



Introduction:

The Island of Cyprus is often described as a stepping stone into Europe, Asia and Africa as a result of it's location to the north east of the Mediterranean. Surrounding Cyprus you have Turkey to the North, Syria and Jordan to the East and Egypt to the South.  The republic of Cyprus was established in 1960 after it gained independence from Britain, although it remains divided to this day with Turkish Cypriots occupying roughly 40% of the Island in Northern Cyprus and Greek Cypriots occupying the remainder to the South. The total surface are of Cyprus is roughly 9,250 square kilometres with approximately 650 kilometres of Coastline.

 

A Mediterranean climate with hot dry summers and cool winters make Cyprus a popular destination among both tourists and expatriates. The economy in Cyprus has remained strong over the course of the last few years and has been driven mainly by tourism. Cyprus offers visitors a real island experience with a wide variety of beaches to choose from, ranging from secluded bays, to lively resorts with sandy beaches.

 

Demand is increasingly strong for property in Cyprus. It is one of the few European locations that can boast a warm dry climate during the winter months making it an undeniable favourite among buyers. Indeed, Cyprus has been likened to a Mediterranean paradise, possibly due to the beautiful landscape, friendly people, low crime rate and low cost of living. The fact that British is widely spoken in Cyprus, with English law forming the basis of Cypriot Law, adds to the appeal of property purchase here.

 

There is a healthy rental and resale market in Cyprus (especially in Paphos), whereas the east side of the island is expected to vastly develop over the coming months. Paphos is the most popular destination for tourists and homebuyers, which offers stunning sea views from its steep hills, a good infrastructure and most importantly, a year-round tourist industry.

 

Adding to the attraction of Cyprus is the low tax rates, and encouraged by the accession of Cyprus to the European Union last year, investors are flocking to the island in order to snap up buy-to-let properties that are likely to double in value over the next three years. Joining the Euro will also instigate a drop in mortgage rates creating a further surge in property prices.

 

The official languages are both Greek and Turkish (Greek being the primary language of the Greek Cypriot sector and Turkish being the principal language in the Turkish Cypriot sector). English is widely spoken & understood in the main towns.

Regional Locations: 


                         
  


• Nicosia
• Limassol
• Larnaca
• Paphos
• Ayia Napa
• Protaries
• Paralimni
• Polis
• Pissouri


The buying Process:

Purchasing property in Cyprus is fairly straightforward, as with many European countries the procedure is pretty rudimentary. Once your offer has been accepted you will be required to:

 

• Pay the holding deposit (this is non refundable if you choose to pull out)
• Sign a contract to purchase the property
• Pay the initial deposit (this will often range between 10 - 20% of the value of the property.
• Pay the balance on or before the set completion date (completion dates are generally 6 - 8 weeks after signing the initial contract)
• Submit your contract to the land registry within 2 months of signing

It is important to remember that different procedures and requirements will apply to Foreigners. Foreign buyers are required to apply for permission to purchase immovable property from the Council of Ministers.

Legal Issues to Consider:

European nationals living in Cyprus can own as much property as they like, European nationals who do not reside in Cyprus permanently can also own as much land as they like, however when it comes to buying actual property they will be restricted to one house or apartment subject to approval from the Council of Ministers.

 

A permit to register a property is required from the government, but can easily be obtained through a lawyer. An increase in the number foreigners looking to purchase property in Cyprus has opened the door for changes in the future; with Cyprus joining the Euro there has been talk of plans to de-restrict the property zone significantly before by 2011.

Fees and Taxes

 

Complete transaction costs will vary depending on where you buy and who you buy through although one should always apportion or expect to pay around 10% of the purchase price in fees and taxes. In most cases the transaction costs are split with the buyer paying anywhere between 3 and 9% and the seller paying around 5% as the Estate Agents commission.

 

Financing a property purchase:

Financing an overseas property purchase is easy when you deal with professionals...

 

If you are thinking about buying an overseas property, then you also need to be thinking about the best way to finance your purchase. At Sublime Location we work closely with a number of specialised lenders who have all been carefully selected based on trust, experience and reputation.

 

Selecting the right product and making the right decision when it comes to financing a large investment could save thousands.

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Investment Potential:

The Cyprus property market has experienced significant growth over the course of the last few years. A popular destination for expatriates, Cyprus has a huge UK population. The quality of the developments and a combination of low interest rates have fuelled the demand and created a boom.  Cyprus has also recently joined the Euro which has opened its doors to Euro currency holders who no longer have to worry about exchange rate conversion.

Economy:

The Greek Cypriot economy is prosperous but is vulnerable to external influences. Tourism and finance are the main service sectors that drive Cyprus's economy. However, political stability and economic conditions in Western Europe cause fluctuations in the economy. The Greek Cypriot sector of the economy is significantly more prosperous than the Turkish Cypriot sector, and it contributes a far larger percentage of the island's gross domestic product (GDP). The Turkish Cypriot sector, which has had difficulty attracting foreign investment, remains heavily dependent on farming as well as upon large financial subsidies provided by the government of Turkey.

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