Advice

Legal questions answered by Cyprus property lawyer Louise Zambartas

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SunWorshipper
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Joined: 08 Mar 2021 00:00

Advice

Post by SunWorshipper »

Hi, I am considering buying a property in the Kapparis/Paralimni area east of Cyprus & I have been trying to find a reliable forum to receive the most up to date information. The plan throughout years of hard saving was to buy, use just as holiday home for myself & my husband & then retire to. However though I think brexit will have ruined our dream I am interested in finding out what the exact fees it would cost me per year if I still went ahead & purchased a holiday home. For example, what would I roughly be expected to pay in annual Bill's for an apartment. I am worried about not receiving the correct information & then finding out after there are surprise Bill's appearing that I wasn't aware of. I am trying to make sure I can afford them. Are there any tax or non resident Bill's I need to account for? Any information would be gratefully received thankyou.
Nigel Howarth
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Re: Advice

Post by Nigel Howarth »

Hi sunworshipper and welcome to the forum.

I can't give you the exact figures, but you'll need to pay:

1. Local property tax (similar to the Council Tax.) Based on property's value - there's no fixed scale budget €150/annum.

2. Community charge paid to the Management Committee that's responsible for insuring, maintaining, repairing, etc the 'jointly-owned building'. This varies hugely! I can't give you an estimate. (If the complex has a lift - it must be inspected a minimum of 8 times a year - and if the complex has a pool it has to get an annual licence to operate and a lifeguard while the pool is in operation. (Many complexes operate a pool without a lifeguard - some get away with it, others do not.)

3. You may have to pay tax on your assessed rental income (even though you do not rent the property). Not all local authorities charge this tax and I can't say how much it will cost or how the authorities who do charge calculate the bill.

You'd be best to look for a small townhouse or something on a development of 4 or less properties to avoid 2 above.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
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SunWorshipper
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Joined: 08 Mar 2021 00:00

Re: Advice

Post by SunWorshipper »

Hi Nigel

Many thanks for taking the time to reply. I confirm I have noted your comments and will take this into consideration. My budget is only a small one so 70k euros. It might be worth me saving a little longer to make it more beneficial to us based on the information provided. A small house was my number one choice but the impact of brexit has forced me to reconsider incase rules & regulations Cyprus prevent us from living in it at retirement. I am also in the process of contacting my Pension Provider to find out if my local government pension can be paid into a Cypriot bank account due to the fact we only rent in the uk. This is because the dream was always to buy in Cyprus. We are not interested in buying in the uk so if the rules and regulations allow brits to retire in Cyprus then Cyprus would become our only home. However, I realise this is more complicated now as visas and healthcare will be probably be required. It is all starting to sound complicated but don't mind as long as we tick all the essential criteria.

Thanks again for your reply, it is very appreciated :-)
Pantheman
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Re: Advice

Post by Pantheman »

SunWorshipper wrote: 13 May 2021 15:37 Hi Nigel

Many thanks for taking the time to reply. I confirm I have noted your comments and will take this into consideration. My budget is only a small one so 70k euros. It might be worth me saving a little longer to make it more beneficial to us based on the information provided. A small house was my number one choice but the impact of brexit has forced me to reconsider incase rules & regulations Cyprus prevent us from living in it at retirement. I am also in the process of contacting my Pension Provider to find out if my local government pension can be paid into a Cypriot bank account due to the fact we only rent in the uk. This is because the dream was always to buy in Cyprus. We are not interested in buying in the uk so if the rules and regulations allow brits to retire in Cyprus then Cyprus would become our only home. However, I realise this is more complicated now as visas and healthcare will be probably be required. It is all starting to sound complicated but don't mind as long as we tick all the essential criteria.

Thanks again for your reply, it is very appreciated :-)
Hello SW,

Just to add to what has been said, first off, you will find it difficult to get a 'decent' property for your budget, no offence. You could get a nice 1 bedder though. For a decent 2 bed you will be looking in the €90k+ range.

Regarding costs - All per year

1. Municipality / refuse tax (Paralimni Area) Approx. €120
2. Property tax approx. €25
3. Sewerage tax approx €70
4. Communal fees can vary between €500 - €800 depending on the complex you are on.
5. There is no rental tax to pay or tax on rents collected if not rented out. Having said this, most don't even declare their rental incomes!

If you are a UK pensioner you can get an S1 form from the DWP and this will cover for your medical, as for staying permanently, you can apply under Category F of the immigration rules for an annual visa unless you qualify regarding annual income above a certain level etc etc.

Hope this helps
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Nigel Howarth
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Re: Advice

Post by Nigel Howarth »

Thanks Pan

Category F is the way to go - the annual income required is €9568.17 for a single applicant and at least €4613.22 for every dependent person, according to the Civil Registry and Migration Department. (That's around £8235.75 and £3971.22 respectively at the current exchange rate.) Plus there's a €500 application fee.

As for tax on rental income - some local councils do tax non-residents even though they don't rent their property. I've had a handful of complaints in the past, but nothing in the last couple of years.

Cheers,
Nigel Howarth
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SunWorshipper
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Re: Advice

Post by SunWorshipper »

Good Morning :-)
Thankyou for your very informative reply which is most helpful & good to know.
No offence taken at all as it is the advice I am seeking. I have noted your comments and will make a record in the research file I have started. I/we would be more than happy with a one bed as it is just myself and my husband. Family like to visit Cyprus but have no dream to live there so anyone visiting would just book a holiday in their normal method. It would have been nice to have a two bed so they had an option to stay if they wanted but it doesn't matter if not or, alternatively I would just save a couple of years longer if it mattered.
I am hoping before I get around to achieving it that those who have bought after brexit might share their experience.
I have spoken to an Estate Agent in the Paralimni area and just want to make sure I am being told the correct information by the estate agent as so much bad stigma around about Cyprus. I thought this advice forum would be the perfect start and I am pleased I am undertaking that before going ahead.
Would you mind me asking if you have become aware of the Visa costs? I tried looking on the Cyprus Gov Website but found it difficult to find what I was looking for. I am interested because it would be no use going ahead if the cost was say €1000 euro each and has to be applied for every year. I understood from the estate agent the fee was barely nothing and that Cyprus were welcoming British retirees and all they have to prove is that they are in receipt of their State Pension. Obviously I want to abide by all rules so it is crucial to me I just check and receive all relevant information rather than regret and loose alot of hard earned savings.
Kindest regards, SW
Nigel Howarth
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Re: Advice

Post by Nigel Howarth »

Hi SW

Regarding the cost of an annual immigration permit, according to the Government website its €500. See http://www.moi.gov.cy/moi/crmd/crmd.nsf ... enDocument . How you get to the stage where you can apply for an annual immigration permit is a mystery.

When you arrive you can stay for 90 days (in any 180 day period). During that time you can apply to extend your stay - see http://www.moi.gov.cy/moi/CRMD/crmd.nsf ... 2C00382AD7 (and you have to produce various documents regarding your status, income, etc.)

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
SunWorshipper
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Joined: 08 Mar 2021 00:00

Re: Advice

Post by SunWorshipper »

Thankyou to Pan & Nigel for the valuable information provided.
The web links are very useful of which I have made a note of & the attached forms I will print off & file.
Whilst reading the link to the category F paragraph I read you can also still rent as well which is something else the Estate Agent mentioned. I preferably wanted to buy & the Fees for annual outgoings will definitely be cheaper than the UK although appreciate there are/will be additional Bill's but as I am sure you are already aware the council tax here in the uk is that amount per month!! I know the electricity is expensive in Cyprus but would still make it affordable based on what is paid for the council tax.
I suppose I need to weigh up whether though I prefer to buy if renting would be an option for consideration because if not purchased a property it will make the Visa application more attractive with alot more in the bank. However you might gain more points on your application if you're a property owner. It will be interesting to hear in about 5 years how many have bought and rented since brexit.
The original plan for years was to retire at 60 but then the retirement age increased to 67 and then brexit and now covid....we definitely didn't see any of these hurdles coming.
In a worse case scenario I could buy a one bed apartment on a small complex to use to and then retire to or sell if no longer an option or something else has changed.
I have 6 years to reach 60 so even saving longer isn't an issue. Another hurdle thrown into the equation is though all my life I was lucky enough to be healthy I was diagnosed with Gastro Esophgael Reflux Disease last year so now have an health issue which I am aware we have to get private medical insurance so will need to include this as well into our Annual Budget. We are coming to Cyprus next year in Sept. I was going go speak with a Lawyer plus also using the visit as a test to see how I am with my GERD as it is quite severe so need to see if I can tolerate the heat the same....lots to consider but I am not giving up yet.
The information provided and the links have helped me alot and I am very grateful for your replies.
Kind regards
SunWorshipper
Posts: 6
Joined: 08 Mar 2021 00:00

Re: Advice

Post by SunWorshipper »

I am sorry about this, I don't know why I suddenly felt the need to check but now I have I have noticed I should have typed 'my budget is a low one so 70k GBP' and not euros as I had typed previously :!: .
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