Investment properties in Cyprus – Invest in the island of Aphrodite
For more than 10,000 years, Cyprus has witnessed the coming and going of civilizations. The likes of everyone from Alexander the Great to Cleopatra have staked their claim, but it’s the British property investor who is leading the latest invasion. An estimated 60,000 Britons own a second home on the island, drawn by a standard of living comparable to the UK, but enhanced by 300 days of sunshine a year.
Aphrodite made her home in Cyprus, and travelers of old came here just to pay their tribute. Today, Cyprus is a modern country that effortlessly blends European culture with ancient charm. It offers alluring beaches and fragrant mountain peaks, vineyards dotted with olive trees and ancient ruins, as well as citrus groves and ancient stone.
This juxtaposition of cultures and beliefs, of seascapes and rural retreats makes it the fifth most popular overseas destination for UK residents. Although property prices have risen by around 20% year on year, the 2008 accession to the EU promises to open up the previously tight buy-to-let market for foreign investors.
Having already secured their place in the sunshine-loving heart of the nation, anyone considering property in Northern Cyprus would be well advised to consider buy-to-let and watch their investment grow accordingly. The relatively low cost of living in Cyprus is an unequivocal point in favor of the continuation of the British love affair and consequently high rental returns. Recent statistics point to Cyprus as one of the most affordable countries in Europe, encouraging a better quality of life and marking the Mediterranean hot spot as a year-round holiday favourite.
New builds are plentiful in North Cyprus with two bedroom properties being the most recommended for the rental market. Look for well-appointed apartments close to amenities and with a pool and parking to maximize short- and long-term rental potential.
The Oroklini Village Apartments are well suited to the holiday market, with views of the sea and countryside and only a two minute walk from the bustling town square. Prices start at 54,000 CYP. The three blocks each have use of the community pool and the attached children’s pool, with interiors equipped with air conditioning, ceramic tiles and double glazing.
At the other end of the rental market, the Poseidon luxury villa complex consists of two and three-bedroom luxury detached villas. Each villa has its own spacious garden and private pool, increasing the rental potential.
Foreign investors in Cyprus benefit from a well-developed, modern and efficient banking system. Financial institutions often offer investors good mortgage packages, although permission to buy a property must first be obtained from the Council of Ministers through a written application.
The non-Cypriot buyer must send it after the agreement has been signed. However, permission is more or less routinely granted to all bona fide buyers. Meanwhile, buyers can take possession of their property without restriction. By law, a non-Cypriot in Cyprus is not required to have a permanent residence permit, but it is easy to obtain once certain requirements are met.
Legal fees usually charged by a lawyer are approximately CYP 500 and cover the administrative costs of the Sales Agreement and Master Agreement. Stamp duty is paid at the time of signing the contract. This is charged at a rate of CYP 1.50 per CYP 1,000 up to CYP 100,000 and then at a rate of CYP 2 per CYP 1,000. The purchase contract must be sealed within 30 days of your dated signature or a fine will be imposed.
The transfer of property from seller to buyer is done through a simple procedure through the property registry. The purchase and sale contract must be in writing, and it is recommended that said contracts be registered in the District Property Registry within 60 days following the date of the contract. When issued, the title deed will be registered in the name of the buyer and will be recorded in the government files; these are confidential and will not be published or made accessible under any circumstances.
The transfer of the title can be made effective once the permission of the Council of Ministers is obtained together with the confirmation of the receipt of the foreign funds. Upon transfer and registration in the buyer’s name, the district Land Registry Office will charge transfer fees that are based on the property’s market value at the time of purchase, as follows: Value up to CYP £50,000 – 3%, value of CYP £50,001 – CYP 100,000 – 5% and value of CYP£100,000+ – 8%.