Minthis Hills – Buyers Guide
Purchasing property at Minthis Hills, Cyprus
* Prices quoted are excluding VAT. Please speak to us today for more information.
We are pleased to offer a selection of properties for sale at Minthis Hills. To discuss your requirements, current availability and pricing simply enquire now and we will be happy to assist you in purchasing a home at Minthis Hills, Cyprus.
Mortgages are available from the Bank of Cyprus, and other institutions, using the property in Cyprus as security.
A rough guide to the mortgage schemes:
- Generally a loan of up to 60% (subject to status).
- Maximum duration of up to 30 years. Minimum 8 years. Upper age 65.
- Maximum loan up to €1,000.000 for purchase of holiday home.
- Bank arrangement fees 50% on loan amount. Documentation fees €75.
- Lending fees: Eurobor + 4.25%.
(Mortgage terms vary according to the status of the borrower – this is a rough guide only.)
Charged at .15% from €5,000 – €170,000 and at 0.2% thereafter, with a cap of €20,000. This is charged on property purchase and payable within 30 days of signing.
(Inheritance Tax is not imposed).
Financial Incentives from the Cypriot Government to Buyers of New Properties
The Cypriot Government has introduced a framework of investment and business incentives to develop economic growth and encourage international investment to the country.
These incentives include:
- No VAT is imposed on properties sub-leased in Minthis Hills. Normally, a 19% VAT is imposed on the purchase of a property.
- Transfer of Title; is actioned once the property has been handed over. At this time, the District land Registry Office will charge Transfer fees, based on the market value of the property at the time of purchase and calculated as follows: Value of property:Up to €85,000 – 3% €85,000 – €171,000 – 5% €171,000 and over – 8%. For reservations of new property during 2017, where VAT is paid, the Land Registry will take the difference in purchase price stated in the contract and the valuation upon transfer and assess the transfer tax value. 50% of the above percentage will then be charged on the difference.
- Stamp Duty; On signing of the contract the purchaser is liable to pay stamp duty at the rate of .15% from €5,000 – €170,000 and at 0.20% thereafter, with a cap of €20,000. This is charged on property purchase and payable within 30 days of signing.
- Leasehold Registration Fees; Leasehold Registration Fees are imposed by the Famagusta District Land Registry Office in order to register the Sub-Lease and the Long-Term-Lease agreements. The fees are payable upon the registration of the Agreements and amount to 2.5% of the Property Valuation. This amount will be payable in 3-5 years after completion of the project when the separate Lease certificates for each unit are issued by the Famagusta District Land Registry.
- IPT; Immovable Property Tax – abolished as of January 2017.
- Capital Gains Tax; is 20% on the gain but the first €17,086 is exempt. If there are two owners on the original contract of sale then the tax allowance can be up to €34,172 (two allowances maximum). There is a double taxation agreement between Cyprus and many other countries of the world.
- Inheritance Tax; no inheritance tax.
- Tax Advantages; Retirees drawing a pension are exempt from withholding taxes at source and may be taxed on the nominal rate of about 5% or less, depending on their income. Cyprus has double taxation treaties with many countries, safeguarding its residents from paying tax in both countries. No duty is levied on cars for retirees or personal effects.
- PLEASE BE ADVISED BY YOUR CYPRIOT LAWYER AS TO TAXES AT THE TIME OF GOING TO CONTRACT AS THESE CAN CHANGE AND THIS IS JUST A GUIDE.
Cypriot Citizenship for Property Investors
In order to be eligible to obtain Cypriot Citizenship, a non-Cypriot citizen may opt to invest either individually (directly or through company ownership) by investing a minimum of €2 million in any one of the investment areas listed below:
- Investment in real estate of at least €2 million including one property for permanent residence, of at least €500,000.
- Participation in Cyprus companies: the applicant must be the shareholder or the ultimate beneficial owner of a company (or companies) based in Cyprus and the management of which must be situated in Cyprus. The company must employ at least 5 Cypriot or European citizens.
- Investment in Alternative Investment Organisations or in assets of Cypriot Companies: the applicant must invest €2 million in Alternative Investment Organisations licensed by CySec or in the assets of Cyprus companies.
- Combination of the above (+ bonds): the applicant must invest in a combination of the above options and in addition, under the combination option, may invest in government bonds for the amount up to €500,000.
(Numbers 2 – 4 inc, plus €500,000 residency, making an investment of €2.5M).
Benefits of Cypriot Citizenship
- No residency requirement.
- Right to work and live in 28 European Countries.
- Dual Citizenship allowed.
- Passports issued six months after Permanent Residency granted.
Government Fees for Citizenship Application
- Investor pays €2,000 at the time of submission and €5,000 on approval.
- Spouse pays €2,000 at the time of submission and €5,000 on approval.
- Adult child (up to 28 in 1st degree education) pays €2,000 at the time of submission and €5,000 on approval.
- Minor children €80 at the time of submission. No approval fee.
Example Cost: Husband, wife, one adult child and one minor child pay a total of €21,080.
Permanent Residency (without Citizenship application)
- The applicant must prove that he/she has at her disposal a secured minimum annual income of at least €30,000 and a further €5,000 for each dependent person.
- The acquisition of a property of a minimum market value of €300,000 – This has to be a new property (resales do not qualify).
- The applicant must deposit a minimum amount of 30,000 with a Cyprus bank which must be held for a minimum of 3 years.
- The applicant is required to visit Cyprus at least once every two years.
Applications take approximately 2 – 3 months for approval.