Published August 12, 2022 11:57 AM
Any land, buildings, structures, fixtures affixed to any land or building, even trees, privileges, liberties, easements, and any other rights and advantages connected to any land are considered immovable property.
Cyprus has a free-standing real estate market. Despite the fact that extended leases with terms up to 999 years can be given under current legislation. A real estate ownership is largely based on a freehold basis. The property rights in Cyprus are safeguarded by the government, which has the capacity and responsibility to uphold the rights of its citizens.
Not only is Cyprus a well-known tourism destination for visitors from all over the world, but it is also a relatively nice location to live. In addition to having a first-rate educational system and healthcare infrastructure, it also boasts favorable business environments and, most significantly, hospitable residents. Living on this Mediterranean island has a number of other key benefits, including fantastic real estate.
Property Transfer Category And Procedure
The property bought in Cyprus may afterwards be sold or given to additional family members. The easiest way to transfer property in Cyprus is to the owner’s immediate family. What information should you have before starting this process?
- Transfer Ownership This is arguably the simplest and quickest method for transferring a property in Cyprus, although it has its own idiosyncrasies. To transfer ownership, get in touch with the Land Department of Cyprus, provide all the necessary paperwork (such as proof of close family ties), and pay the appropriate property transfer charge (the amount of the fee depends on the value of the property).
Additionally, both parties must be present at the moment of the transfer, which is often a challenge. The primary benefit of this procedure is that it makes the relative the legal owner of the property as soon as the paperwork is signed and the pertinent data is entered in the land registry.
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- Property Inheritance A will, which must also be created and witnessed by an attorney, is the primary document that attests to the transfer of real estate by inheritance. The major characteristic of this process is that the property may only be claimed by the successor once the will takes effect, which is when it is not known how soon or how advantageously.
Additionally, the heir must speak with a lawyer and request a special document verifying the right to the inheritance in order to transfer the property into his or her name. Only six calendar months from the day the will takes effect are available for such a transfer. Other surviving family members of the dead may contest the inheritance during this time.
As a result, the legal process may take many years. Additionally, the property owner himself has the right to modify or cancel his will without informing the beneficiaries who will inherit the property in the future.
- Property by Donation A donation/gift agreement with the provision that the giver transfers residential real estate to the recipient without charge is another way to transfer property in Cyprus.
The execution of the property donation agreement, prepared by a qualified attorney, and payment of applicable taxes and fees are the key components of this process (although the amount is less than in the case of the sale agreement).
If the husband or wife put their own money into fixing or restoring the property, the property can be recognized as joint property after a specified amount of time if the donee is married.
- Sale of Property This process calls for the signing of a sale contract and the payment of the agreed-upon sum by the buyer. The peculiarities of this process are as follows: if the purchaser is married, the property will be changed to joint ownership at the moment of purchase.
The schedule for transferring real estate through this procedure is a little bit longer than a gifted property. To draft an agreement, you must contact lawyers and pay all the related cost.
Required Documents For Property Transfer
Completion of Form N.270 – Declaration of Transfer of Immovable Property
There must be an original attachment of the immovable property’s certificate of registration (title). The property must be transferred at a land office other than the district land office where it is situated. Form N.270 needs to be filled out twice.
Completion of Form N.313 – Transfers/Changes of Immovable Property
For any fees, levies, and taxes owed on the property being transferred, the seller is required to present payment receipts. Any of the following may be included in such fees, charges, and taxes:
- Taxes on capital gains and moveable property. The Internal Revenue Department is the place to go to get payment receipts.
- Drainage Board Tax. The Sewerage Board can provide a receipt.
- City rate. The municipality within the limits of which the property is situated may provide a receipt.
- Public rate. From the neighborhood whose limits the property is located, a receipt may be requested.
How Much Is The Transfer Tax In Cyprus
Almost everyone fantasizes about investing in real estate in Cyprus. Cyprus is a desirable location for real estate investment. We shall go over the tax transfer (Title) in more depth if you are buying a property in Cyprus.
By receiving a Property Certificate – Title Deed for the purchased property, the buyer becomes a registered owner.
A transfer fee is due from the new owner to the Cyprus Land Department. The total price is based on the property’s contract value, excluding VAT.
The fees that must be paid depending on the type of transfer and determined the market value of the property. Typically, the buyer is responsible for the transfer fees, which are determined as follows:
- Up to €85 000 of the property value – 3%
- From €85 001 to €170 000 of the property value – 5%
- From €170 001 of the property value – 8%.
It is obviously a great moment to invest real property in Cyprus given new set of measures and incentives.
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Disclaimer: This is simply meant to serve as a quick reference. Therefore, it is crucial to seek out the necessary professional guidance.
