LEGAL COSTS

Legal Advice

When purchasing property it is vital to have sound legal advice (whatever the country) and we always recommend that you seek out the services of an English speaking solicitor with prior experience of Cypriot property conveyancing. We can recommend reputable solicitors who will be able to answer any questions for you at the outset although of course you may choose your solicitor from any of those registered to practice on the island.

Your solicitor will make a series of deed searches if it's a resale and a deed is already in place, if not the solicitor can check the planning application(s) and necessary permits for the project as part of due diligence, and will go through the contract carefully with you, to make sure that your interests are protected.

Legal Safeguards

The Cypriot legal system has a series of safeguards to protect your rights as a property purchaser, most particularly through a legal instrument called ‘Specific Performance'. This document recognises a purchaser who lodges their purchase agreement with the Land Registry within 60 days of signature. Your solicitor will make sure that all of the relevant paperwork is processed correctly. From a quality point of view, all our developers normally offer a minimum 1 year structural guarantee and in some cases will extend this to 10 years. Our local agents also inspect developments regularly to make sure that strict quality standards are maintained.

Changes and Alterations

It is usually possible to make alterations to the plans or specifications to the new home that you are buying. You will need to negotiate these with the developer.

Capital Gains tax

Property sales are subject to a Capital Gains Tax to the rate of 20% on the gain. However approximately the first 17,086€ is exempt and there is an indexation allowance. Also any proven costs of any additions alterations and some other costs can be exempt.

Inheritance Tax

There is no inheritance tax in Cyprus. This was abolished in January 2000

Banking

It is recommended that you open a bank account in Cyprus at the outset. We will be happy to help you through this process. Preferred banks all have full internet access so that you may easily monitor your account at all times, whether at home or abroad.