We are thinking of buying a re-sale property in Cyprus

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Peter Hopkinson
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Joined: 01 Jun 2013 11:24

We are thinking of buying a re-sale property in Cyprus

#1 Post by Peter Hopkinson » 02 Jun 2013 18:20

Hello everyone,
We are new to this forum.
We have seen a lovely property for sale in Cyprus and are looking to see if we can afford it. It already has its title deeds.

I am retiring early (51 years of age) and want to move to the sun.
The cost is abut €400,000.

We have had a look on a number of websites and all seem to give differing advice.

Can anyone give us some idea of how much the following would roughly be?
Transfer Tax
Stamp Duty
Survey
Legal Fees

How much would IPT cost us every year?

We also have a couple of properties back in the UK. Can we taxed on UK assets?

I will be getting a pension from the UK. Will we have to pay double tax, one in the UK another lot in Cyprus? So many questions.

We will obviously be instructing a lawyer but a bit of a heads up from people who have already been there and done it and continue to do it would be very much appreciated.

Also any other advice around possible pitfalls especially after all the recent bad news around the bailouts and taking money from savings. Wherever we live in the EU there are hard times to come so are still very keen n Cyprus.

We have ordered Nigel's book and eagerly await its arrival which I am sure will answer some of the above.



Nigel Howarth
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Re: We are thinking of buying a re-sale property in Cyprus

#2 Post by Nigel Howarth » 02 Jun 2013 21:50

Hi Peter and welcome to the forum,

I sent you the book on 25th May - and I have confirmation it was delivered at 16:59 the same day. If you haven't received it can you check your spam box. (Also get a copy of my 'property commandments' - free from http://cdn.cyprus-property-buyers.com/w ... dments.pdf which has additions concerning some improvements to consumer protection).

Lets see if I can answer some of your questions:

Transfer Tax (Property Transfer Fees) - these will be based on the market value of the property at its date of sale.

If the Land Registry assesses its market value at €400,000 and you buy in a single name, the transfer fees will be €25,165.59. If you buy in joint names (you and your wife), you will each pay €9,165.59.

(Check out the on-line calculator provided by the Department of Lands & Surveys at http://www.moi.gov.cy/moi/dls/dls.nsf/d ... n?openform ).

Stamp Duty is based on the value of the contract. On the first €170,860 of the contract you will pay stamp duty at the rate of 0.15% - on the remainder the stamp duty is 0.2%.

I don't know what a survey will cost you - or what your legal fees are likely to be. I suggest you contact a couple of the lawyers on the list provided by the British High Commission in Nicosia and get some quotations - see https://www.gov.uk/government/uploads/s ... lators.pdf (I know that Louise Zambartas - the English lawyer who is last on the list works with a qualified British surveyor - and some of the others may have similar arrangements).

IPT (Immovable Property Tax) is currently based on the 1980 value of a property as shown on it's Title Deed. You can read more about the rates for 3013 at http://www.news.cyprus-property-buyers. ... id=0014740 . But this will change next year when the island's 500,000 properties have been revalued.

As for your UK pension, once you have registered with the Immigration Authorities here you need to visit the Inland Revenue Department and register yourselves as Cyprus taxpayers. Once you have done this, your world-wide income (including any rent from your UK properties, interest on savings, and all other income) will be taxed by the Cypriot authorities. You will probably need to complete a DT-Individual form (http://www.hmrc.gov.uk/cnr/dtindividual.pdf) and give it to the IR Officer in Cyprus who will complete it and return it to the UK authorities. Once this form has been processed in the UK, your pensions, etc will be paid gross.

My wife and I have our pensions paid into a UK bank account and transfer enough money to Cyprus every month for our living expenses. You may wish to consider doing something similar.

I hope that helps you get some idea of what's involved and the costs.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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Peter Hopkinson
Posts: 2
Joined: 01 Jun 2013 11:24

Re: We are thinking of buying a re-sale property in Cyprus

#3 Post by Peter Hopkinson » 02 Jun 2013 23:42

Nigel,

That is really helpful. Many thanks for your advice especially about having our pensions paid into our UK account.

We saw a recommendation for Louise already on the Forum and have emailed her. We await her reply.

No doubt we will speak again.

(I have PM'ed you about the book.)

Peter H.



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