The island is known as the Republic of Cyprus and is divided into two parts: 59% of the island is under the control of the Republic of Cyprus, the rest is under the control of Turkey and is known as the Turkish Republic of North Cyprus. Cyprus (however this is not recognized outside of Turkey).
Cyprus is the third largest island in the Mediterranean behind Sicily and Sardinia, it has the warmest climate with average temperatures during the day of 24C and 14C at night and has been part of the Euro Currency since 2008. It has two international airports located in Larnaca and Paphos.
When you find a property for sale in Cyprus you normally put down a small deposit, around 1% to 2% of the purchase price as a ‘holding deposit’ while the contracts are drawn up and it is a legally binding deposit. Once the contracts are signed, a deposit of 10% is paid on resale property and 20-30% on new builds. The balance is paid upon completion.
During the process you will need to submit the contracts to the Land Registry along with a ‘Transfer Approval’ application which may take a while to obtain and you may have completed and moved in prior to receiving it but this is not out of the question. the rule. You will need to present references and the bank would be one of these.
The costs involved in buying a property in Cyprus can be quite complicated and there are two fees, the stamp duty and the property transfer tax, henceforth known as the property tax which is paid annually.
Documented Legal Acts Tax: It is charged at 0.15% on the first €170,860 and then at 0.2% for any excess, so for a €300,000 property you would pay (1.5% of €170,860 = €256) + (0.2% of €300,000) – €170,860 = €129,140 = €258.28) Total tax on Documented Legal Acts to be paid = €514.28.
Property Transfer Tax / Real Estate Tax: The tax rates change from January 1, 2012 and until that date the rates amount to €85,430 = 3%, from €85,431 to €170,860 = 5%, from €170,861 and more than 8%. You can take advantage of being a married couple and you can buy jointly, this will cut the price of a property in half for joint ownership and reduce your tax liability.
As of January 2012 the property tax will change and the revised figures are shown below, property value will also be reassessed and as current property values are based on 1980 it is expected that increase.
Property value as of January 1, 1980
- Up to 120,000 euros: 0%
- 120,000 – 170,000: 0.4%
- 170,000 – 300,000: 0.5%
- 300,000 – 500,000: 0.6%
- 500,000 – 800,000: 0.7%
- More than 800,000 euros: 0.8%
Mortgages are available and proof of income is required, mortgages are calculated on your income and expenses, so all your other mortgages/rents/loans etc. are taken into consideration. If you receive income from other properties, you can apply it to your income, although there is no guarantee that it will be counted. The maximum LTV (Loan to Value) is 70%, although in some circumstances, especially for first-time buyers, it can be 80%. If you are looking for a mortgage in North Cyprus, currently only looking at properties with Turkish or pre-1974 foreign titles, the maximum LTV is 65%.
Location, location, location, everyone asks where is the best place to buy, well Paphos, Limassol and Larnaca are the favourites, of course it depends on what you are buying for, a holiday home or a permanent residence, either way you will We recommend that you take your time and visit regularly until you find the best location for you and your family.
Properties for sale in North Cyprus:
People should be very cautious when buying property in the Turkish Republic of Northern Cyprus, there is still a very real legal problem about property and this is not to say that all properties are affected but make sure you check and verify everything, if it is possible to search for Turkish property pre-1974 or with foreign title, although these are more difficult to find these days.
