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Frequently Asked Questions
Q. What is the cost of living in Cyprus?
A. The cost of living in Cyprus is low compared to many other European destinations.
On average, the annual charges for four adults living in a three bedroom house are as follows: Gas –cy£12.00, water - £100.00 and electricity- cy£400.00
Q. Can I work in Cyprus once I have moved there?
A. Under the Aliens and Immigration Law, non-Cypriots wishing to take up employment in Cyprus are still required to have a work permit. However, this process is a formality which is expected to be lifted over the next couple of years. Permits are granted in normal circumstances, without question.
Q. How does the medical care system operate?
A. The medical care system in Cyprus is very inexpensive. A doctor's visit costs about cy£10.Inexpensive Private Medical Insurance is also available. Cyprus residents, whether Cypriots or not, can have a private medical insurance starting from cy£130 pa. The health care is of a very high standard. The majority of the doctors have being trained overseas.
Q. Is the crime rate high?
A. Cyprus enjoys a remarkably low crime rate, at 1/6 of the European average. This is another reason for its popularity with foreign buyers, for whom security has become a key element in the property world. Visitors are invariably surprised and reassured by this relaxed aspect of life on the island, where crime is virtually unheard of and theft not commonplace.
Q. Is the British Pension subject to Tax payment?
A. Yes it is! According to the Cypriot tax system you are obliged to declare your income from pension. Individual non-Cypriot residents are taxed on a flat basis of 5% per annum on pension and investment income brought into Cyprus. In some circumstances, exemptions totaling up to cy£4,000 per individual or cy£8,000 per married couple apply.
Q. What about Inheritance Tax?
A. There is none.
Q. What other tax advantages are there?
A. Compared with other international financial centres, Cyprus offers a distinct benefit in the form of double taxation treaties. Agreements with an increasing number of countries eliminate the double taxation of income earned in any one of these countries. In practice, the tax levied by one country is credited against the tax levied in the taxpayer’s country of residence. Where different tax rates apply, the tax payer will ultimately not pay more than the higher of the two rates of the respectively countries. Immigrant retirees may import personal effects, household goods and furniture duty free. This is provided that they are for personal use and have been in use for at least one year. There is no duty on one car and retired couples benefit from the additional concession of two duty free cars.
Q. What are the driving regulations in Cyprus?
A. Visitors in Cyprus may drive using a valid International Driving Licence or their National Driving Licence, provided it is valid for the class of vehicle they want to drive. If they wish to get a Cyprus driving licence, then they must convert their national licence to a Cypriot one or take the driving test. In any event, the Cyprus licence will cost CY35 pounds for a lifetime.
Q. Do the properties have title deeds?
A. Properties have title deeds. The title deeds are transferred to the buyer's name as soon as they are issued by the Land Registry Department and following the settlement of the agreed selling price, and the Council of Ministers approved.
Q. How do I get the Title Deeds to my property?
A. Transfer of ownership from vendor to purchaser is accomplished by a simple procedure through the land registry office. The contract of sale must be in writing, and it is advisable that such contracts be registered at the District Land Registry Office within 60 days from the contract date. When issued, the title deed will be registered in the name of the buyer and will be recorded in the confidential government archives.
Q. Can I sell the property easily? Will I be able to take the proceeds of sale out of Cyprus??
A. You can sell the property at any time and with no restrictions either through our office or through a registered estate agency. The equivalent of the full purchase price can be remitted immediately. The balance reflecting an increase in its value can be sent overseas at the rate of cy£50,000 per year, plus any interest earned during the year, starting from the year after the sale. Property sales in Cyprus are subject to capital gains tax at a rate of 20% on the profit. The first cy£10,000 profit per person named on the title deed is exempt.
Q. Are the property prices increasing?
A. Cyprus is a small island with a limited supply of land and properties. With Cyprus’ accession to the E.U. demand is expected to grow and as a result property prices are predicted to increase dramatically. Properties that are well built and well maintained benefit from the highest increases.
Q. Do you provide after-sales services?
A. We offer f ull range of after-sales service.
Q. What media is available in Cyprus?
A. There are six Cypriot/Greek T.V. stations available at the moment free of charge. Approximately 30% of the programmes are broadcast in English and all foreign films are broadcast in their original language, with Greek subtitles. Residents can also subscribe to the Cypriot cable service LTV to watch US and UK sports and programmes. There are also a number of satellite services available including Sky. Numerous radio stations broadcast in Greek and English. In addition to these is the British Forces Radio that broadcasts on a 24 hour basis in English. The island has two independent English newspapers and European newspapers are available.
Q. What is the communication system like?
A. Cyprus has one of the most advanced (rated third in the world!) and cheapest telecommunication systems available. ISDN, ADSL and standard dial-up PC networking are also easily accessible.
Q. How is Cyprus governed?
A. Cyprus is an independent and sovereign republic with the elected president (5 year election cycle) as head of state. The legislation power lies with the elected House of Representatives and appointed council of ministers. The legal system is based on the British/European system with independent power exercised by judiciary. Cyprus is a member of the EU, UN, the British Commonwealth, the non-aligned movement, World Bank and IMF.
Q. If I purchase a property what sort of income can I expect per month for long-term rental?
A. The long-term rental market is buoyant and properties can be let from £200 a month upwards, depending on size and location.
Q. If I purchase a property what sort of income can I expect per day for short-term rentals?
A. The minimum daily rental you can expect to receive is £20. As a general rule we market one bedroom properties at £30 and three bedroom properties from £50 a day. For a 3-4 bed villa with private a pool daily rentals range from CYP£90-140. These prices depend on the season.
Q. What are the benefits of long-term rental over short-term?
A. Long-term rental provides owners with a regulated monthly income enabling annual financial planning. In our experience long–term rentals are subject to less wear and tear than short-term ones which are more costly in terms of maintenance, breakages and cleaning. Short-term rentals often have long vacant periods, especially during the low season. In both cases you’re looking at an average return of 5-7% per annum from rentals combined with a 7-10% capital appreciation per annum.A total return of 12-17% per annum on your investment.
Q. What are the advantages of short-term rental over long-term?
A. Short-term rentals generate much higher rates and during vacant periods you can use it as a holiday home.
Q. Would I need to "top up" the mortgage if I rent my property long-term?
A. This is totally dependent on the amount borrowed and the duration of the mortgage.
Q. What are the communal charges and what do they cover?
Currently communal charges range from CY£20 - 40 per month depending on the project. They cover cleaning of communal areas, swimming pool maintenance etc.
Q. Can we as owners of the property also rent it out privately?
A. Of course. We do not ask for sole exclusive rights to rent out our clients’ properties. We are offer the service to assist rather than to make a profit. All that we ask is that you keep us informed of availability.
Q. How much can I expect to spend fitting my property with appliances and furnishings?
A. Between £3,000 and £5,000 on a one or two bedroom property, dependent on the size of the property the quality of the items purchased. Some of our projects include white goods and air-conditioning to get you started.
Q. Can the company help with the purchase of goods?
A. We will get involved as much or as little as you like. We can recommend stores and items, go shopping with you or purchase all of the goods on your behalf and save you travelling to Cyprus .
Q. How much can I expect to spend on utilitity bills and council rates in Cyprus?
Normally local council rates for services such as rubbish collection etc are no more than £80 a year per property. Bottled gas costs around £4 a bottle and lasts around three months.There is no mains gas in Cyprus.Telephone charges in Cyprus are set at one of the cheapest rates in the world. Electricity on average is about £400 a year and water around £100 a year for a three bedroom property.
Q. Are other living costs in Cyprus cheaper?
A. Petrol in Cyprus is charged at around 54 cents a litre, an evening meal in a restaurant including drinks ranges from £10 per head. Motor and health insurance is considerably lower than in the UK as is car tax.
Q. How much will it cost to insure my property?
A. As a general rule property insurance is charged at 1.65% of the current property value and contents are calculated at 2% of their total value.
Q. How do I organise an insurance claim in Cyprus ?
A. All the companies we recommend speak English and the procedure for claiming is the same.
Q. Can the company help with insurance and mortgages?
A. We can help with the arrangement of insurance and various loan facilities.
Q. What are the standard payment terms when purchasing a property?
A. To reserve a property from our company we request a non-refundable deposit of at least CY£1,000. Generally within 20 days we ask for 30% to be paid at which time we shall register the signed contracts of sale with the land registry.20% upon the completion of the structure, 20% upon the completion of brickwork and rendering, 20% upon the completion of flooring and 10% upon delivery.
Q. How long after delivery can I expect to receive my title deeds?
A. Title deeds can take upto 5 years.
Q. What happens if the company goes bankrupt before the property is completed?
A. The 30% deposit represents the value of the land.Stage payments are made throughout the build.In the unlikely event of the company going bankrupt,the land registry would sell the land and the unfinished development and give the proceeds to clients who have registered their properties.The 30% deposit is therefore very important and should be paid on time.
Q. What return can I expect if buying a property for investment?
A. If you purchase a property off plan you can expect an increase of between 15- 20% by the time it is completed on an 18-24 month build.
Q. Are properties for sale freehold or leasehold?
A. All the properties we sell are freehold are sold freehold.
Q. How does buying in Cyprus compare to buying in other European countries?
A. Buying in Cyprus is very simple. The legal system is based on the British legal system making contracts and procedures extremely easy to follow.
Q. Is there any form of compensation for late delivery of property?
A. We will compensate clients if we are responsible for its late delivery.
Q. Is there any incentive or discount offered by the comapny to encourage me to buy more properties from you?
A. We look at each case on an individual basis.
Q. When will I receive the title deeds to my property?
A. In Cyprus title deeds are issued after the completion of the project. In the case of houses this process may take up to 3 years. For an apartment in a project of 10 to 60 apartments this process can take up to 5 years. However this does not mean you can't sell your property before that. Once your contract of sale is registered with the Land Registry, the property is legally yours and you have the right to sell it.
For further information:
info@gmpmirrorhomes.com
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