Spanish Mortgage Guide

Home | Contact Us | Our Services | About Us
Europa Mortgages - Spanish Mortgage in Spain

Get a Mortgage in Spain

Need help with your mortgage? Use our 24-Hour Helpline - Call (+34) 637 451 649
Mortgage Services
Mortgage Enquiries
Mortgage Guide
Mortgage Calculator
Interest-Only Mortgages
Multi-Currency Mortgages
Spanish Commercial Finance
Financial News
Documentation Required
Euribor Information
Mortgage Resources
Spanish NIE Numbers
Foreign Currency
Foreign Currency Exchange
Foreign Currency in Spain
Practical Steps
Overseas Mortgage Payments
More Advice on Currency
Spanish Property
Spanish Property
The Village
Spanish Property Rentals
Buyers Guide
Inheritance Tax
Useful Spanish Phrases
Worldwide Mortgages
Need a mortgage in Cyprus? Get more information now.

Your Best Value in Cyprus

Cyprus – Buyers guide and purchase costs
The purchase process
When choosing to invest in property in Cyprus it is important to recognise that the legal system in Cyprus is based on the English legal system, as is the Land Registry. Even though you may feel that this makes the process of purchasing property easier, it is always recommended that you engage the services of a reputable, independent solicitor.
In order to be able to purchase a property in Cyprus you must first obtain permission to buy a property from the Council of Ministers, by written application. This permission is granted more or less as a matter of course for British citizens. Should you be buying a new property from a developer, they will generally apply for permission on your behalf if requested.
When you have found a property in Cyprus that you wish to purchase, it is usual to pay a holding deposit of between CYŁ1,000 and CYŁ2,000 to reserve it. A contract is then drawn up. On signing it, the buyer pays a further deposit of 10 per cent of the agreed price, or 20–30 per cent in the case of a new build home.
Transfer of ownership is accomplished by a straightforward procedure through the Cyprus Land Registry Office. This could potentially be done by the buyer, although more commonly a solicitor will be used.
A number of fees and taxes are payable when buying property in Cyprus. These generally amount to between 6 and 7 per cent of the purchase price and include:
Transfer fees on the purchase of a new or resale property in Cyprus, at 3 per cent on the first CYŁ50,000, 5 per cent on CYŁ50,000–CYŁ100,000, and 8 per cent on amounts above that.
Stamp duty at 0.15 per cent of the purchase price up to the value of CYŁ100,000, and thereafter at 0.20 per cent for every additional CYŁ1,000.
VAT (at 15 per cent) on new build properties in Cyprus only.
The fee for the application to the Council of Ministers – CYŁ150.
Legal fees – Allow 1 per cent of the purchase price
The tax system in Cyprus is similar to that of the UK. There is a double taxation agreement between the two countries, meaning that tax is paid in one or other country, not both, and usually in the country where the higher rate is levied.
Non-residents are subject to income tax only on income earned in Cyprus. This includes income from letting out property in Cyprus, which is taxed at progressive rates of up to 30 per cent, depending on the amount.
Non-residents may also be liable for capital gains tax (CGT) on the profit from the sale of a property in Cyprus, according to individual circumstances. Property sales are subject to CGT at a rate of 20 per cent on the gain, although the first CYŁ10,000 of the gain is exempt.
In Cyprus, for non-residents and residents alike, there is no gift tax or inheritance tax.
For tax purposes, a foreign national staying in Cyprus for more than 183 days during a tax year (1 January to 31 December) is considered a resident. The 183 days need not be consecutive.
Residents of Cyprus are subject to progressive taxation on worldwide income. Income of up to CYŁ10,000 is not taxable. Income of CYŁ10,000–CYŁ20,000 is taxed at bands of between 20 and 25 per cent. The highest rate payable is 30 per cent on income over CYŁ20,000.
Local taxes
The annual Immovable Property Ownership Tax amounts to approximately CYŁ50–CYŁ150 depending on the value of the property. An annual tax of CYŁ20–CY30 may also be levied by the municipal authorities, as may a sewage tax of CYŁ20–CY40.
Tax privileges
Immigrant retirees are permitted to import personal effects, including household goods and furniture that are for personal use and that have been used (i.e. are not brand new). Additionally, no duty is charged on the importation of a car, and retirement age immigrants are granted the concession of not being charged duty on two cars.
To find out more about properties in Cyprus, please complete the Enquiry Form. You will receive contact from one of our consultants within 24 hours.


Enquiry form
Cyprus Mortgage

Property in Cyprus

Buyers guide
and costs

Guide to mortgages
In Cyprus

- • -

For advice and a free quotation please fill out a Cyprus mortgage enquiry.

Home | Mortgage Enquiries | Our Services | About Us | Contact Us | Mortgage Resources
Europa Mortgages - Tel (+34) 637 451 649 - Fax +44 207 681 1265
© 2004-2007 Europa Mortgages SC (CIF - G92654250). All rights reserved. No unauthorised copying permitted.

Web Design in Spain by abOriginal