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International Real Estate > Cyprus Why buy property in Cyprus
By David Leonhardt
Cyprus is almost like a tax haven within the European Community. There is no inheritance tax or gift tax, pensions from abroad are taxed at a flat rate of just 5%, interest earned on foreign capital imported into Cyprus is tax exempt, and investment income remitted to Cyprus by foreign nations is taxed at a flat rate of 5%, which is particularly helpful for anyone interested in Cyprus investment property. Even the corporate tax rate is a flat 10%. Cyprus also has signed double taxation agreements with many countries, including the United Kingdom. A Capital Gains Tax of 20% is payable on the sale of immovable property in Cyprus, but no capital gains tax is payable on gains from investments. Personal income tax rates range form 0 - 30%.
Cyprus is also a popular tourist destination, with frequent inexpensive flights from major European cities. Visitors need quality accommodation, such as villas and apartments. This makes Cyprus property a good investment, earning an income until the owner wants to sell and cash in...or until the owner decides to retire and use the property for his own purposes.
Of course, over 320 days of sunshine certainly don't hurt land values on this Mediterranean island.
Unlike in many other sunshine destinations, the legal system in Cyprus is mostly based on the British legal system and is designed to safeguard the property purchaser. This makes buying property in Cyprus particularly attractive to UK investors. Once the contract of sale is signed and a deposit is paid, the contract is registered at the land registry office. This procedure protects the purchaser's ownership rights until the title deeds are issued and transferred to his or her name. The contract in the hands of the Land Registry cannot be withdrawn by anyone, and therefore the property cannot be leased, sold, transferred or mortgaged. Only the purchaser himself can alter this status.
More About Cyprus
An island in the far eastern Mediterranean Sea, below Turkey and to the
west of Syria, Cyprus is actually two countries - the Turkish Republic
of Northern Cyprus (recognized only by Turkey) and the Southern Republic
of Cyprus. There are two large mountain ranges on the island: the
Kyrenian Range in North Cyprus and the Trodos Massif in the centre of
the Republic. The northern mountains are mainly limestone, the southern
are volcanic rock. These ranges are separated by the Mesaoria Plain.
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