The transfer of title can be effected once the Council of Ministers' permission is obtained and the Central Bank of Cyprus confirms receipt of the foreign funds.

Upon transfer of the property and registration in the purchaser?s name, the District Land Registry Office will charge Transfer Fees, which are based on the market value of the property at the time of purchase, and are calculated as follows:

Value up to
- CY£ 50.000 3%
- CY£ 50.001 - CY£100.000 5%
- CY£ 100.001 - and over 8%

STAMP DUTY
Stamp duty is due at the time of signing the contract. Stamp duty is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£1,000,000. The purchase contract must be stamped within 30 days of its dated signature, otherwise a fine will be imposed.

IMMOVABLE PROPERTY TAX, SERVICES TAX
The annual immovable property ownership tax imposed by the government is approximately CY£60-120 per year, depending on the value of the property. The Municipal authorities also levy an annual property tax at the rate of about CY£20-30 per year. Other authorities may also impose a sewage tax of CY£20-40, depending on the value of the property.

CAPITAL GAINS TAX
Should the purchaser decide to sell the property at a later date, Cyprus Law provides that the full amount paid for it in foreign exchange may be transferred abroad at the time of the re sale. The equivalent of the full purchase price and any increase in value of the property may be transferred immediately. Property sales in Cyprus are subject to Capital Gains Tax at the rate of 20% on the gain, however the first CY£10,000 are tax-exempt.

INHERITANCE TAX
Inheritance tax is not imposed.

LEGAL SAFEGUARDS FOR FOREIGN INVESTORS
Contrary to the risks inherent in the purchase of property in some countries, Cyprus has never been involved in the nationalization of any sector of the economy, nor in the expropriation of property owned by foreigners. Indeed the Republic has often guaranteed foreign investments jointly and severally with local participants ? consistent with its efforts to create a favorable climate for such investments.

TAX PRIVILEGES
Personal effects, household goods and furniture can be imported duty free by immigrant retirees, provided they are for personal use and have been used for a reasonable period of time - approximately one year. Also, there is no duty on a car, and retired couples enjoy the additional concession of two duty free cars.

COMMON EXPENSES
These are usually payable monthly or quarterly in advance. They vary from development to development and depend on the area and type of the property. They cover an owner?s share of the cost of cleaning and maintaining common areas and gardens, swimming pool expenses, electricity in common areas, management fees, rubbish collection and repairs. The estimated total is in the region of CY£150 - CY£300 per year.

ELECTRICITY AND WATER SUPPLY & OTHER MUNICIPAL SERVICES
Charges for utilities are payable to the respective authorities at regular intervals throughout the year. They are based strictly on consumption of each unit. While the cost will vary for every unit, approximately CY£180 per unit per year can be considered as a rough guide.

The local municipal or other authorities are responsible for the regular collection of rubbish. Depending on the area of the property the cost is from CY£40-50 per year.

INSURANCE
Comprehensive insurance against fire and associated hazards is provided by Makris and Santis Investments until the title deeds are transferred to the owners, at a cost of CYP25-100 per year, depending on the value of the insured property . Insurance for the contents of the property is the owner's responsibility, and an approximate cost indication would be CY£2.00 per CY£1,000.00 sum insured per year, with a minimum premium of CY£10.00.

TAX ADVANTAGES
Retirees drawing a pension are exempt from withholding taxes at source, and may be taxed at the nominal rate of about 4% or less depending on income.

Additionally, Cyprus has Double Taxation treaties with many European and other countries, safeguarding its residents from paying tax in both countries.

RESIDING IN CYPRUS
Non-Cypriots wishing to reside permanently in Cyprus must apply to the Committee of Aliens Control. To obtain residence permission a Non-Cypriot should fall in the following categories:

CATEGORY A : In this category are included people who are interested to open an offshore office in Cyprus.

CATEGORY B : In this category are included self-employed foreigners who are interested to open their own business in Cyprus on the condition that their operations will not have negative impact on the economy of Cyprus. Additionally the minimum capital required is CY£150.000

CATEGORY C : In this category are included Non-Cypriots who are interested to be employed in Cyprus by a Cypriot employer. Permission is granted on the condition that their employment will not lead to an increase in the local unemployment in the profession they will practice.

CATEGORY D : In this category are included foreigners not employed in Cyprus however would like to reside permanently in Cyprus. Permission will be granted on the condition that they have received from abroad and is no less than £CY3.800.

Non-Cypriots wishing to take up employment in Cyprus are required to have a permit under the Aliens and Immigration Law.