[BUYING AND SELLING REAL ESTATE IN CYPRUS]
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Confidentiality and reporting The registration of the CIT is necessary, but confidentiality of the beneficiary is safeguarded. There are no reporting requirements in Cyprus for the CITs other than registration of its existence. Complicated family structures – family wealth management and estate planning This scheme is ideal for high-net- worth individuals with somehow complicated family structures Another form of beneficial ownership is the life interest reservation. This confers on the beneficial owner the right to possess or exploit the tenement for the period of his life while the title is in the name of another. This is usually a course adopted by parents when transferring their land to their children.
Transfer fees are calculated by the Land Registry on the value of the property (as valued by the Land Registry) as follows: Value Rate Current rate of 50% €0 - €85.000 3% 1,5% €85.000,00 – €170.000 5% 2,5% €170.001 and above 8% 4% G. Recording Real Estate Documents The submission of the Contract of Sale or the Assignment Agreement at the District Land Registry . creates in favour of the purchaser a real interest (akin to an encumbrance) over the property and gives to the purchaser the right of “specific performance” of the contract. H. Annual Costs for property ownership a. Property Insurance: Usually, property owners insure their properties. The cost for insurance varies depending on the size and condition of the property. b. Communal Expenses: This refers to the properties that consist of part of a unified complex that entails common areas. The cost for communal expenses varies widely depending on location, size of property and the communal area management company. c. Local Authorities Taxes: Property owner’s falls under either a Municipality’s or a village council’s jurisdiction. Taxes and rates vary depending on which municipality/council the property is located. Taxes roughly range from about €85 to €256 annually, depending on the size of the property. These usually entail
F. Closing Cost – Completion Transfer of property in buyer’s name. The property is transferred in the name of the buyer at such time and upon such terms as stated in the sale contract. It is important to note that for the transfer of the property to be possible (a) the seller must obtain a Tax Clearance Certificate; and (b) Transfer Fees must be paid.
ILN Real Estate Group – Buying and Selling Real Estate Series
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