These are the first signs of falling prices for apartments and houses on a crisis island
Aphrodite’s Island is still considered one of the most attractive places to live permanently or temporarily. Tempts 330 sunny days a year, a friendly climate, lifestyle and beauty. Until now, its advantage was also a stable political and economic situation and a favorable tax system. Now the situation has changed, but not all investors are worried. There are those who count on decreasing demand for Cypriot properties and falling prices.
Unnecessary panic
Cypriots are also calm. They know it is hard, but they believe it is a temporary situation. They place high hopes in the submarine gas deposits off the southern coast, which the American company Noble Energy estimated after test drillings at 140-230 billion cubic meters. Thanks to them, Cyprus would have the chance to become one of the largest gas exporters for European countries, and work on them could increase the demand for buying and renting real estate. In the perspective of the year, price movements are not certain, but in the long run bull market seems to be very likely. The investment can therefore bring real profits. The attractiveness of Cyprus to Poles is also evidenced by the increase in flight routes to the island. They are launched by other airlines in the largest Polish cities: Warsaw, Krakow, Wrocław, Szczecin, Poznań, Gdańsk and Rzeszów. You can fly to Larnaca or Paphos from them. The flight lasts from 2.5 to 3 hours, and tickets can be bought in the promotion for just under PLN 500. Paradise is therefore within reach.
Ayia Napa Marina property sales
On an island like in UK
Residents of EU countries have the right to full ownership of the house or apartment. Buying property in Cyprus, therefore, does not raise problems except for the cash needed for this purpose. Although the latter is not necessary, because specialized real estate offices will help not only in finding an attractive property and completing formalities, but also in obtaining a loan of up to 80 percent. its values. The purchased property can be used alone or handed over for rent and management. In the second case, the apartment or house in Cyprus will be available to the owner for three weeks a year. Return on rent is not high, because it is about 5 percent. per year, but it will be guaranteed. Housing prices start from 70 thousand. EUR. These are the most sought after two-room apartments with an area of about 50 sq m.
Important formalities
Those interested in the primary market must reckon with the fact that many developers require paying a reservation fee, which is about 5 thousand. EUR. Only after that he will prepare a contract which will specify the next installments. So let’s have a lawyer who will supervise this process. Only after paying 30 percent. property value, the contract will go to the land registry office. The last installment must be paid at the end of construction. Those interested in buying several properties must have a temporary or permanent residence permit. To obtain them, they must set up an account with a Cypriot bank (which today can be negatively associated) and provide a copy of the property purchase contract. In return, they will be granted a permit to stay on the island from one to four years. Persons willing to permanent residence must additionally submit documents confirming that their annual earnings are at least 9.6 thous. EUR. You have to earn an additional 4.6 thousand for each dependent. EUR per year. These formalities must be taken care of, because only then you will receive an act of ownership.
It is worth looking for developers who obtained construction permits before the accession of Cyprus to the European Union, i.e. before 2004. Thanks to this, it will be possible to avoid paying VAT. It is theoretically 17 percent, but for customers buying the first property falls to about 5 percent. The act of ownership is also a cost. For real estate cheaper than 85.4 thous. EUR fee is 3% property values. For more expensive, but not exceeding 170.9 thousand EUR, you will have to pay 5% The largest costs are generated by the largest properties – 8 percent This also applies to the annual tax, but in this case it does not exceed 1 percent, and for real estate costing less than 120 thousand. EUR is not paid at all. Within 30 days of the transaction, you must pay a stamp duty, which is EUR 1.5 for every 1 sq. Km. EUR transactions, up to EUR 170.9 and EUR 2 for every thousand above this threshold.
