SELLING PROPERTY IN CYPRUS
Property News Article by Demetris Demetriades – Barrister at Law Gray’s Inn & Head of Conveyancing and Immigration Department at Andreas Demetriades and Co LLC
Selling a property can be a challenging and stressful process. It comprises of many different procedures until the successful completion of the transaction. Put your mind at ease from the start, with good legal representation.
Marketing your Property
Appointing an estate agent is the most convenient way of marketing your property, as it increases exposure to prospective purchasers.
Selling a Property with a Title Deed
A property with a separate title deed, provides for a straightforward sales transaction. The sale can be concluded via a Sales Agreement (recommended) or, by signing, the LRD Transfer Form (N.313), directly at the Land Registry.
Selling a Property without a Title Deed
Having no separate title deed in place, does not prevent you from selling your property. The sale can be concluded via an Assignment Agreement, by virtue of which you will assign to the purchaser, all of your rights and obligations, arising from your original Sale Agreement.
Once you have secured a sale, a Reservation Agreement is signed between the Seller and the Purchaser, setting out the main parameters of the transaction.
Receipt of Funds
At this stage, you will have to decide how and where you would like to receive the sales proceeds, and verify, with your Financial Institution, that the Purchaser is in compliance with the anti-money laundering requirements.
Following the receipt of the reservation deposit, your lawyer will negotiate, with the purchaser’s lawyer, regarding the content of the Sales Agreement to be signed.
Capital Gains Taxation
CGT in Cyprus is fixed at 20% on the profit you make from selling your property. Each person is entitled to a number of allowances, which reduces tax liability by:
€17086,00, provided, it is a first time sales transaction (one-off transaction)
€25629,02, provided, it is the first time selling agricultural land (subject to certain conditions)
€85430,10, provided, the individual is selling his main residence (subject to certain conditions)
*Important note: An individual claiming a combination of the above allowances, may only receive a total maximum of €85430.10.
Communal Expenses – Utilities – Community and Immovable Property Taxes
Communal expenses, as well as Community and Immovable Property Taxes, will have to be settled up to the date the seller had possession of the property. The same applies to the utilities of the property, which should be settled in full and transferred into the name of the new Owner, at the time of completion.
Delivering Possession of the Property and Transferring the Title Deed to the Purchaser
Possession is delivered to the Purchaser, once the full selling price has been paid. The title deed of the property, and/or the rights upon the property, are then transferred to the purchaser’s name.
Having legal representation, throughout the process of selling your property, will secure your rights and ensure your needs are being met. With good legal representation, you can also ensure a hassle-free process from start to finish. Visit their website for more information.