Selling your property in Cyprus
Once the negotiation process is over and a price has been agreed, the buyer will put down a reservation fee which is about 1% of the sale price. The reservation fee should be held by an appointed solicitor until all necessary checks are made and contracts are signed. The reservation fee shows that the buyer is committed but it is also a guarantee for the buyer that he or she will not get gazumped.
An appointment will be arranged to see your solicitor right after the reservation fee is taken. Although it is not required that the seller appoints a solicitor, it is greatly recommended.
The contract is then drawn up by a solicitor, and though not limited to this list, it should include the following 7 points in order for it to be a valid contract of sale:
Reference to the vendor
Reference to the purchaser
The subject matter has to be described as accurately as possible. If it does not exist at the stage of signing the contract, for example if it's a property to be built in the future, reference to subject specifications must be determined accurately
The purchase price
The terms of payment
The delivery date and
The date of the transfer of title deeds
Remember that the legalities of this phase are very important. If you have any questions or concerns, they need to be addressed right away by your solicitor.
Capital Gains Tax
On disposal of the property, capital gains tax will be payable at the rate of 20% on the gain with the first CY£10,000 being exempt for each person.
On top of this allowance, the seller is entitled to a further allowance regarding the transfer fees paid, inflation rate per year, estate agent commission and the cost of any additions made to the house.
Gains from the disposal of a dwelling house are exempt up to CYP 50,000 in total if the owner resides in it continuously (more than six months every year) for at least five years prior to disposal.