New VAT Rules Encourage First Time Buyers in Cyprus
New VAT provisions were brought into effect on 8th June 2012 designed to encourage first time buyers in the Republic of Cyprus. Law N73 (I)/2012 amends the VAT Law by offering first time buyers a reduced rate of VAT.
VAT is currently charged on all properties for which the building permission was granted after May 2004. The current full rate of VAT is 17%.
The new law introduces a reduced rate...
Capital Gains Tax in Cyprus
Capital Gains Tax (“CGT”) is a tax imposed on capital gains made by companies and individuals in Cyprus.
Application
It is applied to any gain that is attributable to:
the disposal of immovable property located in the Republic; and
the sale of shares in a company that owns immovable property in the Republic provided that the relevant company is not listed on a recognized stock exchange.
Rate...
Evading Difficulties When Buying Property in Cyprus
Each year hundreds of buyers are attracted to purchasing real estate on the island of Cyprus. With a system of registered land and a legal process broadly based on that of England and Wales, buying a property in Cyprus is relatively straightforward. However, as with any jurisdiction, there are a number of potential snares of which a purchaser needs to be aware in order to avoid difficulties....
The Costs of Purchasing Property in Cyprus
When buying property in Cyprus there are a number of additional costs and taxes of which every buyer should be aware prior to committing to an acquisition. It is extremely important that a potential buyer plans for and takes into account each of the following incidental costs that will occur when buying property in Cyprus.
1. LEGAL FEES
It is imperative that a buyer instructs an independent...
Property Litigation in Cyprus
Property is one of the most valuable assets that a person or a company can own and it is perhaps by virtue of this value that property tends to attract a great deal of litigation and dispute. There are many different kinds of dispute that can occur in relation to property; in this article Michael Chambers highlights some of the most common forms of dispute and the action available to an...
Cyprus: an advantageous venue for Incorporation
Each year thousands of new companies are registered with the Registrar of Companies in Cyprus. In 2010, 19278 new companies were registered and 2011 looks set to top that figure. Year on year the number of annual registrations on the island increases, taking the total current number of registered companies in Cyprus to over 250.000 companies. Clearly Cyprus holds great attraction as a business...
Buying property in Cyprus
Cyprus is considered one of the safest European countries to invest in since its market is growing at a stable rate and its prices are competitive. If every perspective purchaser bears in mind the following points then a safe and prosperous investment will be carried out.
An official search must be conducted at the Lands Registry which will provide the purchaser with information found on the...