Cyprus, the third largest Mediterranean island,
is a former British colony that achieved independence
in 1960. Differences between its ethnic Greek
and Turkish communities subsequently led to
separation of the island between the Turkish
north and Greek south ( which also involved
a land grab from owners caught on the ‘wrong
side’ of the dividing line). A UN buffer
zone now separates the two halves of the island.
A
UN attempt to reunite the island was rejected
by Greek Cypriots (who make up 77 per cent of
the population) in a 2004 referendum. However,
a month later the Greek Cypriot Republic of
Cyprus joined the EU: meaning that EU laws now
apply to the south side of the island.
The (poorer) Turkish side of the island does
not have international recognition.
Despite
the island’s political difficulties, its
economy relies heavily on tourism. The climate
is Mediterranean in nature, but Cyprus suffers
from a water shortage and there is a moderate
risk of earthquakes.
Property
prices in the Republic of Cyprus remain low
compared to European standards but have been
moving up rapidly in recent years. As the land
available is limited and EU membership is likely
to bring greater prosperity, this is trend likely
to continue.
Cyprus
has an array of property laws with title is
based upon registration. The Land Registry also
records charges and encumberances on the property.
Foreign
nationals may acquire property and are in fact
encouraged to do so. Both foreign investors
and retired people who settle permanently in
Cyprus are offered a number of incentives including
duty free facilities and very low taxation of
overseas income.
However
the law requires foreign property buyers to
obtain permission from the Council of Ministers
before the property can be registered in their
name. Investors often take possession of property
while this process is underway as permission
is usually granted in the case of single properties.
The
Exchange Officer of the Central Bank of Cyprus
should be notified once permission has been
obtained so that a certificate verifying the
amount paid in money brought into the country
can be certified (this certificate will be needed
in the event of a sale when there are restrictions
on the amount that can be repatriated). At this
point transfer fees of up to 8 per cent become
payable by the buyer. Stamp duty of up to 0.2
per cent is also payable before ownership can
be registered.
|
|
|
|
Country information
- Cyprus |
Area:
|
|
9,000 sq km
|
Principal
cities: |
|
Nicosia,
Larnaca |
| Language: |
|
Greek,
Turkish, English
|
Flying
time
from UK: |
|
4.5hrs
|
| Time
difference
from UK: |
|
+2 GMT |
International
dialling code: |
|
+357
|
| Climate:
|
|
Mediterranean
with hot, dry summers and cool winters |
Population: |
|
770,000
|
Median
age of population: |
|
total:
34.4 years
male: 33.4 years
female: 35.5 years
(2004 est.)
|
| Employment
rate: |
|
96.6
per cent
(Republic of Cyprus) |
| Currency: |
|
Cypriot
pound (Republic
of Cyprus) |
| Rate
of inflation: |
|
4.1%
(2003 est.)
(Republic of Cyprus) |
Average
GDP
per person: |
|
$16,000
|
|
House
price inflation: |
|
20%
|
|
|
