Useful Information

Time +2GMT

220-240 Volt electricity – 3 pin plugs as per UK

Flight times from UK approx 4 hours

Population is approximately 750,000 of which 60,000 are British

Capital is Nicosia (Lefkosia)

Official language Greek however in excess of 80% of the population speak English

Road signs and street names are in English

Currency is Euros (previously Cyprus Pound until 01.01.08)

Driving is on the lefthand side of the road, same as U.K.

Banks open 08.30 to 12.30 / 1.30 pm.

All types of medication are available in well stocked pharmacies all over Cyprus.

Cyprus has two international airports – Paphos and Larnaca. There are currently over 40 airlines operating from the U.K. providing over 260 flights a week, with the frequency and cost of flying improving all the time and average flight times around 4 hours.

Main roads are excellent with motorways linking larger towns. Public transport is regular and great value and there are many car rental and taxi firms on the island together with two main shipping ports at Limassol and Larnaca.

Excellent communication systems have contributed to the Island becoming a major Financial Centre for the area. The cost of telephone calls are some of the lowest in Europe and Cyprus ranks third in the world for its modern telecommunication facilities.

The electrical system is also very convenient with 3 pin British style plugs used so there’s no need for adaptors.

Legal System

Based on the British legal system. The Land Registry Department in Cyprus is one of the most advanced and reliable in the world. All contracts and other clerical work is in English which is the most widely spoken language beside Greek amongst Cypriots.

Residential Permit

This is easily obtained for people living in Cyprus who have purchased property.

A temporary permit is granted on the presentation of a Sales Agreement of the property being purchased and the opening of a Bank account in Cyprus.

A permanent permit may be obtained with the additional evidence of an income.

These requirements are likely to change on entry to the European Union.

Property Ownership

Compared to many countries, the process of purchasing property is very simple. Prior to entry to the E.U. the rules are that Non-Cypriot buyers are entitled to the freehold ownership of a villa, an apartment or a piece of land up to a maximum of 4,014m². After entry to the E.U. restrictions on real estate purchases are expected to be lifted.

While prices continue to rise, properties in Cyprus are on average 20%-30% lower than Portugal, 30%-40% lower than Spain and 50-60% lower than Italy and France.


Title Deeds

Transfer of ownership from Vendor and Purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with Power of Attorney.

The transfer of ownership requires two permits which are from the Council of Ministers and the Central Bank of Cyprus. Both permits can be easily obtained from the Cypriot Authorities.

Property Taxes, Fees and Rates

Real estate transfer tax fees are necessary in order to transfer freehold ownership to the name of the purchaser. This can be done as soon as the title deed and the purchase has been completed. The Transferee is responsible for the tax payment. The rates are on a graduated scale

Transfer Fees

Scale:
Value of property Rate of Transfer

Up to €85,430 = 3%
€85,430 - 170,860 = 5%
Over €170,860 = 8%

Should the purchase be made in joint names (provided the price is more than €85,430) effectively the calculation is halved.

Stamp Duty

0.15% up to €170,860
0.20% for amounts over €170,860

Immovable property Tax (Like Council Tax) calculated on the market value of the property as at 1st January 1980.

CY£ Annual Tax
Less than €170,860  0%
€170,861 - €427,150  2%
€427,151 - €854,300   3%
Over €854,301  3.5%

Capital Gains Tax

On disposal of the property, Capital Gains Tax will be payable at the rate of 20% on the gain with the first €17,086 being exempt for each person. There is also an indexation allowance. On top of the allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year and the cost of any additions made to the house. Gains are exempt up to €85,430 in total if the owner resides in the property continuously for at least five years prior to disposal.

Capital Gains Tax

Up to €17,086 – 0%
Thereafter at 20%

Local Authority Tax

Between €50 - €250 per annum depending on the size of the property. The tax is for refuse collection, street lighting, sewerage etc. The basic utilities, electricity, water, telephone are payable individually in accordance with consumption and based on meter readings.

Banking System

Again this closely follows the British pattern with well organised and well equipped branches. Non-Cypriot Citizens are easily able to open foreign currency and local deposit accounts.

Currency of the Republic of Cyprus is the Euro. This has replaced the Cyprus Pound on 01.01.08.

Finance and Mortgages

Most U.K. mortgage lenders can offer options to raise finance on British property for the purchase of a home abroad.

Additionally Commercial Banks in Cyprus are authorised to offer mortgage facilities to assist in the purchase of property. The loan may be in foreign currency, Euro’s, Dollars, Swiss Francs, etc. With amounts ranging from 60-80% of property values and terms of up to 25 years.

It is also common for many of the larger developers in Cyprus to offer assistance in financing new build properties.

To find the best solution for your overseas purchase Hestia Homes have appointed Hestia Mortgages as our Independent Financial Advisers and Mortgage Brokers who can help with arranging finances as well as queries on taxation and any other financial matters you wish to discuss.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT.

Tax Advantages

Cyprus has some unique tax advantages. Retirees who become residents in Cyprus are taxed on their pensions from abroad at the rate of 5% for amounts exceeding €3,417.20 annually. For all Cyprus residents their total income up to €17,086.01 is exempt. Additionally Cyprus has double taxation agreements with many European and other countries, safe-guarding its residents from paying tax in both countries. Similarly the first €3417.20 of investment income remitted to Cyprus by foreign residents is tax free and the remainder subject to a flat rate of 5%.

Standard of living
A high quality of life, low cost of living and generous tax incentives.
The standard of living in Cyprus is higher than its’ per capita income alone can express. Excellent housing conditions, a virtually pollution free environment outside the city centres and an enviably low crime rate make the island a comfortable and safe place to live in.

The overall cost of living average is 1/3 to 2/3 cheaper than most parts of Europe, Japan and the USA and it is recognised as having one of the lowest costs of living within a developed nation.

It is important to obtain detailed financial advice, but overall, the total tax liability on many overseas residents of Cyprus can be very low. Foreign residents residing in Cyprus pay income tax at just 5% flat rate and the first €3417.20 of earnings are exempt from tax.

Climate

Cyprus enjoys one of the best climates in the Mediterranean with approximately 340 days’ sunshine a year.

Temperatures rarely drop below 16C making it the ideal island for lovers of all kinds of outdoor pursuits, especially golf,sailing,diving and walking.

They say Cyprus only has two seasons Summer and Winter! The winters are short and mild and the summers lazy and long with the swimming season starting early in April and not really ending until November.

Average daytime temperatures from June to September is 32 degrees C, From December to February 16 C and from March to May and October to November 25 degrees C
Temperature (coastal Areas) supplied by Meteorological Service, Nicosia

January 17.3
February 18.5
March 19.4
April 22.6
May 26.6
June 30.7
July 33.0
August 33.2
September 31.3
October 28.6
November 23.5
December 19.0

The People

A mixture of many trading nations from the Mediterranean having a population of some 750,000 - 800,000, over 80% are Greek Cypriots with an estimated 60,000 Britons.

Wherever you go you can expect to find people open, frank, friendly and hospitable. Above all, Cyprus is a safe country to visit or live in with low crime in comparison with other countries such as Spain, Portugal, Italy and France being approximately 6% of the UK’s published crime rate. In residential areas people rarely lock their cars and many times leave houses, windows and even doors open. This is all due to the friendliness and honesty of the local population.

International

Cyprus is a member of the United Nations, the Council of Europe and the British Commonwealth and will become a full member of the European Union from May 2004. The E.U. is Cyprus’ main trading partner accounting for approximately 50% of total trade and the United Kingdom being Cyprus’ main export destination.

Medical Services

Cyprus has a very high standard of medical care and facilities with the latest technology and operating techniques. Most doctors and dentists have trained in the U.K. or USA and their fees are reasonable compared to European standards.

When Cyprus becomes a full member of the European Union in 2004, reciprocal healthcare arrangements will become formalised. This means that UK citizens will be entitled to receive their basic healthcare free just as they would at home.

There are large hospitals in Limassol and Paphos as well as a number of private hospitals, clinics, surgeries and pharmacies. With English widely spoken in all healthcare institutions so homeowners should have no difficulty in making their needs understood.

Additionally should you require it, low cost local and international private medical insurance is available for non-Cypriot people living in Cyprus.

Language

While Greek is the main language over 80% of the population are English speaking with street signs, direction and shop signs written in both languages.

Recreation and Nightlife

Aside from the well known resort area of Ayia Napa with its famous pubs and clubs eating out is one of the main recreational pastimes in Cyprus with a wide variety of excellent restaurants to suit all tastes and moods from Taverns with Greek dishes and mezes, through to French, Chinese, Italian, Indian, Lebanese, Japanese, Russian, Mexican restaurants as well as the well known International fast food chains and Cyprus’ own ‘Goodies’ chain of burger bars where you can sample the local favourites such as a delicious lamb burger with olive dressing and feta cheese topping!

Otherwise there are many other year round activities to occupy residents and visitors including; sunbathing, swimming, waterskiing, diving, windsurfing, sailing, paragliding, horse-riding, walking, climbing, ski-ing, snowboarding, tennis, beach netball, golf, cinema’s, art galleries, and the theatre.

Horseracing takes place in Lefkosia (Nicosia) and there are many sporting clubs offering tennis, squash, bowling, archery, shooting and sailing amongst other activities around the island.

In the winter months skiing and snowboarding facilities are available in the Troodos mountains which has 4 ski slopes.

For families there are some outstanding water parks and 3 international standard golf courses set in beautiful locations .

There are many antiquities and historical sites on the Island such as ancient forts and palaces with outstanding mosaic floors, together with Byzantine monasteries and churches of which many contain exquisite frescos.

Festivals and fairs take place throughout the year with the annual Carnival in February and the International (State) Fair taking place in May, the Wine Festival in September…also Summer Flower shows and the Snow Ski Games held in the Winter.

Shopping

There are excellent shopping centres in the main towns with leather products being particularly good value. Fashion is of great importance to most Cypriots and the shops stock up-to-date styles at very reasonable prices. Handbags, shoes, suitcases and jackets are a good bargain.

Handicrafts abound on every shopping street with local traditional pottery, Cyprus copperware and filigree silver in abundance. Always popular is the beautiful ‘Lefkaritika’ or ‘Lefkara’ lace.

Popular local drinks and food include Cyprus Brandy, Commandaria, the sweet dessert wine brewed by the Crusader Knights and the oldest named wine in the world, Zivinia, a highly alchoholic vine by-product and Halloumi, the Cyprus cheese. Cyprus wines are of excellent quality and very reasonably priced.

T.V. Radio and Newspapers

While satellite television is available, there are 5 national channels and numerous national and local radio stations including the excellent British Forces Station which broadcasts on a 24 hour basis, the BBC World Service, CNN and MTV. Approximately 50% of the TV programs are British and American and all foreign films are broadcast in their original language.

There are a number of local English language newspapers such as the Cyprus Weekly, Cyprus Mail and the Financial Mirror together with a number of locally printed English magazines as well as a wide range of international media.

Pets

A permit must be obtained from the Chief Veterinary Officer. Cats and Dogs need to be accompanied by a health certificate signed by an official government officer of the country of origin.

There is a 6 month quarantine period however pets imported by air from the UK are normally allowed to spend the majority of the period in their new home within the boundaries.