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How easy is it to find work in Cyprus , and will I need a work permit?
Since Cyprus entry into the EU on May 1st 2004, all EU citizens have the right of free movement, to live and work in Cyprus without restrictions provided that they hold an EU passport. However, non-Cypriot citizens must still follow the formality of registering at the local immigration office in order to obtain a social security number. Finding a job in Cyprus can be done through visiting the Labour Office, or simply through the local newspapers. Now that Cyprus is an EU member, the co-operate network EURES can be used to assist mobile workers in all aspects of living and working in EU countries such as Cyprus. The EURES website is http://www.europa.eu.int/eures/index.jsp
- Can I receive my pension in Cyprus ?
UK pensions are easily transferable to Cyprus. For individuals, CY£ 2,000 of pension income from abroad is received tax free p.a., and thereafter income tax is applied at the very low rate of 5% to amounts above this. Additionally, Cyprus has double taxation agreements in place with many countries including the UK to prevent double taxation of income. We can refer you to a tax advisor in Cyprus to answer any individual questions you may have.
- Up to how much land am I allowed to purchase as a non- Cypriot?
At present, there are restrictions on the amount of land a non-Cypriot can purchase. Currently, this stands at 3 donums (4014m²), however in 2007, this restriction will be reviewed.
- What are the terms of payment when buying a property in Cyprus?
A CY£ 1,000-2,000 deposit fixes the price and removes the property from the market. After signing the contact, 30% of the sale amount is required within one month of signing. The remaining amount is paid in instalments varying on the constructed development you are going to engage in.
- What safeguards are in place to protect my investment?
The land registry in Cyprus is based on the British system, and safeguards the purchaser’s rights in many ways. Above all, it provides a legal instrument called “specific performance.” Once the sale agreement is signed and a deposit of 30% paid, the contract is deposited at the Land Registry to protect the purchasers ownership rights until issuance and transfer of the title deeds into your name. This cannot be withdrawn by anyone and ensures no one but the purchaser can lease, sell, transfer or mortgage the property. If clients wish, a bank guarantee for issuance of the title deeds of your property can be provided, however the cost is borne by the purchaser. Whilst you are in Cyprus Aegokeros Property is happy to answer any questions that you may have on this matter.
- How much are the communal charges?
The communal charges cover maintenance of the communal areas in a development. For example, the garden, swimming pool etc. They vary from project to project, but generally range from around CY£ 450 - 600 p.a.
- How much is VAT, and is it included in the sale price?
The decision of 15% VAT on new build property has been passed, with the exception of projects or buildings which have already applied for the planning permit prior to the 1st May 2004. This decision affects all new projects coming onto the market, but the price increase to clients will be closer to 10% due to some of the tax being applied to materials used. There is no VAT applied to the purchase of land up until 2007. VAT is also exempt for re-sale properties.
- Can I re-sell my property and how do I go about it?
Yes, Aegokeros Property can sell your property for you and this can be done even after the 30% has been deposited and transferred to your name through the contracts. Of course, you are not obliged to sell through Aegokeros Property Developers.
- Do I need to make a will in Cyprus ?
It is advisable to make a will in any country where you have immovable assets you would like to pass on in a certain way. Inheritance tax has been abolished in Cyprus.
- Is it difficult to get a loan in Cyprus ?
The banking system in Cyprus is similar to the British system. Non-Cypriot citizens may open foreign currency and local deposit accounts without difficulty therefore with a foreign deposit account, payments and transactions can be made. The procedures for extending foreign currency loans to non-residents for the acquisition of immovable property in Cyprus are fairly easy. The terms and conditions of the loan facility are as follows:
- Amount – No maximum amount in any one of the three major currencies, Euro, US$ and Sterling.
- Repayment period – Maximum of 10 years (Currently being revised and extended) 15-20 years lending period for Cyprus Pound (CYP)
- Customer’s Contribution – 30% of the total cost payable upfront prior to the disbursement of the loan. 70% can therefore be financed.
- Interest Rate – LIBOR + 2.5% (Currently being revised, and will eventually be less).
- Rates for Loans – 4.5% for Euro and 6% for sterling (rates are subject to change).
- Arrangement Fees – 0.5% on the loan amount payable in advance.
Security documents required include: first mortgage on the purchased property or a letter of guarantee issued by the seller of the property and assignment of the applicants right on the contract of sale (the contract of sale should be registered at the Land Registry), personal guarantees of one guarantor (not required for joint applications), assignment of fire insurance.
Kindly note that the above terms and conditions can be amended at any time subject to the Banks Policies and Regulations. Each application will be evaluated on its own merit and its approval or rejection will be up to the banks Discretion
- What happens if I pay the first instalment and then the bank rejects us?
As long as Aegokeros Properties recommends you to the bank and the 30% is in place, the chances are very minimal.
- How much rental income can I get from my property?
This depends on the rental options you agree with Aegokeros. Aegokeros is offering:
- Seasonal Rental Agreement. This allows you to use your property upon request, provided you give us one months notice and no agreement with visitors for rental bookings have been made in advance.
- Tenancy Rental Agreement. This allows you to earn rental income based on one or more tenancy agreement which will be signed with tenants proposed by Aegokeros Properties, and / or a combination of seasonal and tenancy rentals.
- Rent on your own and Utilise our Services. This allows you to rent out your property yourself, and use our services to clean and maintain your property and do the laundry.
- Will peaceful co-existence continue between Northern and Southern Cyprus ?
Since the Southern part of Cyprus has joined the EU on May 1st 2004, peaceful co-existence with the Northern side will be provided. Already Turkey is a candidate for accession to the EU.
- Why buy in the South, when prices are cheaper in Northern Cyprus ?
Secure title deeds are those with a pre-1974 Turkish provenance or British provenance, which are difficult to find therefore making it risky to purchase property in the North. Title deeds dated from 1974 when the TRNC gave Turkish Cypriot refugees from the Cypriot homes and land in the South are not recognised anywhere but Turkey and the North of Cyprus. Buying in the North is also an act of taking part in a political conflict, which has been taking place for more than 30 years. Thus investing property in the North is not a secure investment.
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