ABC Properties Cyprus

Non European citizens are entitled to a freehold ownership of one villa, an apartment or a building plot or land up to three donums (4,014 sq.m). European citizens are entitled to a freehold ownership of a villa or an apartment. The above restriction, in respect of Europeans, will hopefully soon be abolished because Cyprus entered the EU. In respect of plots of land, Europeans can purchase as many and for any extent. Europeans who acquire permanent or temporary permit can register in their name as many properties as they want provided that they sign a confirmation to the government that they will stay for the following five years in Cyprus . 

Offshore entities may also acquire premises for their business (with restrictions) or as a residence for their foreign employees, provided the residence is registered in the employee's name. Properties in Cyprus are freehold. Upon completion of signing the sale agreement, non-Cypriots must apply to the Council of Ministers for permission to acquire property on the island. This procedure is just a formality and can be easily carried out for you by our associated law firm or any other solicitor of your choice.

The Cyprus legal system is largely based on British Common Law and safeguards the purchaser's right in many ways. The Land Registry in Cyprus provides a simple and effective legal instrument called the "Specific Performance". Once the Sale Agreement is signed and the deposit paid, the contract is then lodged and registered with the Land Registry Authorities. This procedure protects the purchaser's ownership rights until the title deeds are issued and transferred to their name. The contract, once held by the Land Registry, cannot be withdrawn by anyone, and therefore the property cannot be leased, or sold. Only the purchaser is able to alter this status.

Cyprus is unique when it comes to the taxation aspects of living on the island. Double taxation treaties are made in order to avoid paying income tax in two countries. This gives the option to the citizen of the countries to take advantage of the low rate of tax in Cyprus . Countries that Cyprus has double taxation treaties are: 

Austria, Bulgaria, Canada, the People's Republic of China, the Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Armenia, Belarus, Kurdistan, Moldova, Tajikistan, Turkmenistan and Ukraine, Slovakia, South Africa, Sweden, Syria, the United Kingdom, the United States, Yugoslavia (Serbia and Montenegro) and other countries.

Foreign residents are now taxed on a flat basis of 5% per annum on pension income over €3,420. There is 0% on investment income (i.e. dividends & interest) brought into Cyprus . In special circumstances exception totaling up to € 6,840 per person or 13,680 per married couple may apply. As a result, the total tax burden on foreign residents is in practice often only 3%. This compares extremely favorably with competing destinations where property owners are subject to high tax exposure levels of up to 60%. Insurance pensions can be paid to retirees in Cyprus on a similar tax-free basis, and are index-linked by virtue of the Reciprocal Agreement, compared to their "frozen" status in other overseas destinations.

Based on the British system, Cyprus offers a large range of banking services for businesses and individuals. Non-Cypriot citizens have the privilege to open foreign currency and local deposit accounts very easily. Many Cypriot Banks have branches throughout the world. International Banks also have branches throughout the island for the convenience of their customers, with major credit cards like Visa, Platinum, Gold, Signia, Master Card and American Express, being widely used. 

Cyprus Banks offer flexible housing loans in foreign currency to suit every client's needs. Moreover, transfers of pensions, salaries and investment income from abroad are straightforward via the modern and efficient Cypriot banking system.

The Central Bank of Cyprus requires that acquired property must be paid for with external funds. Bank transfers and personal cheques are accepted. Ultra Properties can arrange foreign currency loans for non-Cypriot citizens. Conditions vary slightly from bank to bank. Generally a mortgage between 70-80% loan to the value of the property is granted, with repayment terms of 10-15 years. As a company, we are happy to discuss the individual needs of each prospective buyer, with regards to methods of payment.