Frequently Asked Questions

Q. What lanquage do they speak in Cyprus?
Q. Is Cyprus now a full member of the European Union?
Q. What about the currency in Cyprus . is it easy to understand?
Q. How does the medical care system operate?
Q. Is the cost of living in Cyprus really much lower?
Q. Are there any tax advantages to living in Cyprus?
Q. Can you explain the double taxation treaty?
Q. What is the governmental structure in Cyprus?
Q. Is the crime rate high or low in Cyprus?
Q. What is the Cypriot communication system like?
Q. Can I work in Cyprus once I have moved there?
Q. What can I expect to pay in legal fees on my property in Cyprus?
Q. When do i have to pay my stamp duty and how much can i expect to pay?
Q. What about Inheritance Tax?
Q. How do I get the Title Deeds to my property in Cyprus?

Q. What language do they speak in Cyprus?
A. Greek is the population's mother tongue but with the strong influence Britain has exerted on the island's history, English is widely spoken and understood. Knowledge of French, Russian and German is increasing with the island's tourist trade.

Q. Is Cyprus now a full member of the European Union?
A. The first phase of the agreement was implemented on 1st January 1998 with the abolition of all customs duties and quantitative restrictions on trade of industrial products between the EU and Cyprus. The second phase was recently agreed and Cyprus was welcomed as a full member of the EU on May 1st 2004.

Q. What about the currency in Cyprus. is it easy to understand?
A. Yes . the Cyprus currency system is based on the decimal system. One Cyprus Pound is divided into 100 cents. Coins range in value from one cent to 50 cents and four bank notes are in circulation: £1, £5, £10 and £20.
The Cyprus Pound is also tied up to the Euro and it is a very stable currency. In 2004 the exchange rate between the two currencies fluctuated very little; CYP 1.00 = Euro 1.70-1.75




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 and X-rays about cy£15-25. 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 studied and were trained in the U.K. and U.S.A.

Q. Is the cost of living in Cyprus really much lower?
A. The relatively low cost of living in Cyprus is definitely one of the advantages that appeals to the potential buyer. The island offers a full but comparatively inexpensive lifestyle. In fact, recent statistics pointed to Cyprus as being one of the most inexpensive countries in Europe. The local markets flaunt a wealth of colourful fresh fruit and vegetables, meat and fish, locally grown and produced. On the other hand the modern supermarkets are fully stocked with a large range of local and imported goods.



Q. Are there any tax advantages to living in Cyprus?
A. Non-Cypriot individuals residing in Cyprus pay income tax at a flat rate of just 5%. This applies to the amounts remitted to Cyprus from pensions or income from overseas investments. The first CY£2,000 per annum are tax exempt. Personal effects, household goods and furniture may be imported duty free by immigrant retirees, provided that they are for personal use and have been in use for some time (approximately one year). There is no duty on one car and retired couples benefit from the additional concession of two duty free cars.

Q. Can you explain the double taxation treaty?
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. Such treaties combined with very favourable tax rates for international business entities in Cyprus open the doors to significant tax planning opportunities. The fact that Cyprus is not considered a tax haven but rather a country offering tempting tax incentives expels the distrust that international tax havens often arouse. To date, double tax haven treaties exist between Cyprus and the following countries: Austria, Belarus, Bulgaria, Canada, China, Czech Republic, Denmark, Egypt, France, Germany, Greece, Hungary, India, Ireland, Italy, Kuwait, Malta, Norway, Poland, Romania, Russia, Slovakia, Sweden, Syria, United Kingdom, South Africa, United States and Yugoslavia.

Q. What is the governmental structure in Cyprus?
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 UN, the British Commonwealth, the non-aligned movement, World Bank and IMF, and a full member of the EU.

Q. Is the crime rate high or low in Cyprus?
A. Cyprus enjoys a remarkably low crime rate, 1/6 of the European average . 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. What is the Cypriot 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. Can I work in Cyprus once I have moved there ?
A.Non-Cypriots residents from the European Union wishing to take up employment in Cyprus are not required to have a work permission, now that Cyprus is a full member of the European Union. Other nationalities need to apply for a work permit to the authorities

Q. What can I expect to pay in legal fees on my property in Cyprus?
A. The legal fees usually charged by a lawyer are approximately CY£500-1000 and cover the review and alteration if required of the Sale Agreement, revision of the General Agreement (which regulates the use of common areas, where applicable) and submission to the land registry for specific performance.




Q. When do i have to pay my stamp duty and how much can i expect to pay?
A. Stamp duty is due at the time of signing the contract. This is levied at the rate of CY£1.50 per CY£1,000 up to CY£100,000 and thereafter at the rate of CY£2 per CY£1,000. The purchase contract must be stamped within 30 days of its dated signature or a fine will be imposed.

Q. What about Inheritance Tax in Cyprus
A. There is none.

Q. How do I get the Title Deeds to my property in Cyprus?
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 government archives - these are confidential and will not be published or made accessible under any circumstances.