About cyprus
Cyprus, also called as the Republic of Cyprus is an island country located in the Mediterranean Sea. It is the third biggest island in the sea and also the most visited one. It is quite surprising to know that more than 2.4 millions people visit this island from other parts of world every year. Cyprus was earlier under the colonial rule of Great Britain and it became free in the year 1960. At present, Cyprus is a member of European Union and is a developed country.
Buying real estate in cyprus:
Each year, many people from outside buy real estate in Cyprus. There are many online sources that provide information about the properties available for buying in Cyprus. An increase in the number of people buying properties in Cyprus is attributed towards the increase in the offshore business activities and excellent climate. The natural beauty of the country is irresistible and it attracts many people each year. Though it has become free, the large part of the population in the country consists of expats, which signify the British presence. Most of the outside people that buy property in Cyprus consist of British People, who have many reasons for doing so. First, English is the language that is widely spoken by people here, the land registry systems are essentially the same and vehicles are driven on the left side of the road like Great Britain. In fact, most of the tourists visiting this place are British only.
The political situation in the country is quite stable and every effort is taken so as to promote the property buyers here. Among international real estate buyers, Cyprus is a famous name and this has led to increase in the price of real estate here. Let us try to understand the real estate prices in Cyprus with an example. If a person wishes to buy a three-bedroom home near the beach, he is required to pay about 140000 Cyprus Pounds. If the same property were bought in North, it would cost only 90000 Cyprus Pounds to a person. Since the price of real estate has been rising slowly, the amounts mentioned above may see from 5-10% appreciation easily.
The buying process:
Buying a property in Cyprus is not a big problem as there are no harsh rules for doing so. Any person that wishes to buy property here has to buy it by means of an agent. There are also many developers here that can help a person in buying real estate. A person can also buy real estate by means of partnership of real estate agent and developer. The commission that is charged by the real estate agents in Cyprus is about 5% of the value of the real estate. However, if the property has been bought with the help of a developer too, a person may be required to pay 3% extra. Thus, a person can have to pay up to 8% as the commission towards buying property in Cyprus. The commission rates mentioned above are those rates when the real estate market is at boom. If the real estate market gets cooled off due to some reasons, a person can easily manage to pay less than the percentages mentioned above. The reader may be interested to know if a person can buy the property directly from the seller, without involving any real estate agent or developer. Of course it is possible as nobody can stop that. But it is generally not recommended because like United Kingdom, the land registry is governed by bureaucrats and the real estate agents and developers have their own links to get the work done in time. In fact, all those people that come from outside like to sought the help of a real estate agent or a developer for buying property here, as they know how to tackle all the situation. A person is also required to pay some legal fee ;towards buying property in Cyprus and this legal fee is 600 Cyprus Pounds.
Bank finance and other aspects:
Buying property in Cyprus with the help of bank finance is also easily possible, as the staff deployed in different banks of Cyprus speaks fluent English and all matter can easily be communicated. The maximum amount that can be borrowed from a bank in Cyprus varies from one lender to another but a person can easily get from 60-80% of the value of property as finance from bank and other such lending institutions. The loan is repayable in a maximum of 10 years, but can be extended more by negotiation. Since the country is still in adapting stage with respect to European Union, it is really very difficult to get the mortgage loan from a non-Cyprus bank. It is thus advised here that a person should approach a Cyprus based bank for making mortgage and getting loan.
One of important aspects of buying real estate in Cyprus is the tax. There are many types of taxes that are required to be paid by a person for buying real estate in Cyprus. First is the Real Estate Transfer Tax. This tax is levied on a progressive base and can be up to 8% of the deal value. For all the residents of Cyprus, the Immovable Property Tax is also levied at a rate from 0.2% to 0.35%. This tax is applicable only when the value of the deal is more than 100000 Cyprus Pounds. First 100000 Cyprus pounds do not attract any immovable property tax. The buyer is also required to pay the stamp duty. Apart from these, there are local authorities taxes that are required to be paid every year and its percentage vary according to the size of property.
One of issues regarding buying property in Cyprus in the Northern Areas that I would like to bring to the notice of the reader is that unless a person is getting full proof guarantee of the title, he should not buy any real estate. This is because Turkey has not yet recognized the title deeds pertaining to the TRNC or the Turkish Republic Of Northern Cyprus and there is every likely that a person may loose his investment. Thus, it is advised that a person should avoid buying properties in Northern Cyprus as of now.
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