Property Vendors

Access  (see also Preparation below) In order to facilitate viewings we recommend that you have a key-safe installed outside your property's entrance.  This is a box to contain keys that can only be opened by turning the cogs to display the right numbers (a bit like a combination padlock on a bicycle).  Only you and the sales agent will know the combination.  We can arrange installation for you.

Capital Gains If a property is the seller's first property in Cyprus and the seller has lived in it for at least five years, it is exempt from Capital Gains Tax.  Otherwise Capital Gains Tax of 20% is levied on the difference between the sales price and the original purchase price of the property, after certain deductions.  These comprise (1) a personal allowance of €17,000 (per person, in the case of joint title holders, up to a cumulative maximum of €85,430), (2) indexation to reflect inflation since the original purchase and (3) any interest paid by the owner in the original purchase.

Commissions  We charge 5% commission on sales, i.e. the seller receives 95% of the purchase price.  Other agents in Cyprus charge 5 - 25%.  If multiple agents are involved, the commission is split.

Currency Exchange  We can provide introductions to foreign exchange companies, which we find provide finer rates than banks.  Cyprus law requires that the sale price be denominated in Euros, even if both the seller and buyer are located in a common third-country outside the Eurozone.

Furniture  Unfurnished properties sell more slowly.  We find sales result more easily if furniture is included in the sale.

Preparation  It makes a huge difference if the property is prepared for sale before being shown.  It should be cleaned and tidied and any clutter should be removed or preferably eliminated.  And - sorry! - owners should not be present during a showing.  Many a promising sale has been torpedoed by inappropriate comments by, or the demeanour of, a hovering owner.  We have the experience to anticipate and handle most queries during a showing.

Most buyers would like to be able to move in to a property fairly soon.  Hence, whilst it is not necessary to re-decorate a property and put it in pristine condition, a buyer is likely to be deterred if any major works require to be done, e.g. re-wiring or re-plumbing.  Where possible, any such problems should be addressed prior to putting a property on the market.

Process  The seller should first decide what the desired net proceeds of the sale should be.  Then comes the signing of an Option-to-Sell Agreement with the sales agent.  If a buyer makes an acceptable offer, we recommend that independent lawyers are retained to advise the parties.  The buyer is required to make a deposit of €3,000 - €4,000 to the sales agent.  At this stage the property can no longer be shown to other prospective purchasers by any agent, so there is no gazumping.  A Sales Agreement is drawn up and executed.  The seller's lawyer will arrange for this to be stamped and presented to the Land Registration Department for registration.  This process is called Specific Performance in Cyprus - it bestows rights and protections upon the parties.  At this point the buyer can apply for a mortgage if necessary, so this stage can last a few months.

Title Deeds  Real estate property is registered in Cyprus with the Land Registry.  Title can be freehold or leasehold.  Registered owners receive a certificate of registration.  Employing a solicitor is the fastest way of achieving this.

Transfer Fees  Prior to issue of title deeds transfer tax must be paid.  This is levied at the rates of 3% (on the first €85,430 of the sales price, 5% on the next €85,430 and 8% thereafter.  If multiple joint owners are involved, the sum is divided between the parties.

V.A.T.  No V.A.T. applies to re-sales of properties.

© Copyright 2017 | Web design in Cyprus by United Worx Ltd