Channel 4's list of 'Top 20 places to make money'

Cyprus: Purchase Process

As a former British colony, the buying process in Cyprus is similar to that in the UK.

• As soon as you have found a property and agreed the price, you should pay a reservation fee. This ensures that the property is withdrawn from sale.
• You then have up to 28 days to complete the necessary searches and surveys and for your lawyer to complete legal checks and prepare and agree a contract.
• On the day of signing the sale contract you will be required to pay your deposit to the vendor. You then have 28 days to complete the purchase, although this period can be negotiated.
• On the day of completion you will transfer the mortgage funds from your lender.
• Title deeds will be issued in your name after you have obtained the Council of Ministers consent. For Europeans this is only a formality now (EU law prohibits discrimination). For citizens of other countries this can take six months to obtain, but you may continue to live in the property while you wait.

Costs of a standard property purchase in Cyprus include the following:

• A reservation fee of CYP 1,000 to 2,000 must be paid to the estate agent or developer when you have chosen your property and agreed the price.
• When you sign the contract you may be expected to pay a deposit of 20% - 30% of the purchase price.
• Legal fees will amount to around 0.75% of the purchase price.
• Stamp Duty will be payable on the purchase price of CYP 1.5 per thousand pounds up to CYP 100,000 and 0.2% over CYP 100,000.
• Transfer taxes on the purchase of a property are 3% on the first CYP 50,000; 5% on CYP 50,001-100,000; and 8% on CYP 100,001 and over.
• Annual property tax is charged at 2% - 3.5% of the market value of the property. In the case of individuals, however, the first CYP 100,000 of house value is tax exempt.
• Property sales are subject to Capital Gains tax at the rate of 20% on the gain, above CYP 10,000