Travellers Guide to Cyprus

Cyprus, the third largest Mediterranean island, is a former British colony which gained independence in 1960. Differences between its ethnic Greek and Turkish communities subsequently led to the separation of the island between the Turkish north and Southern Greek. A UN buffer zone now separates the two halves of the island.
A UN attempt to rejoin the island was rejected by Greek Cypriots (who make up seventy seven 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 southern end of the island.
The (Nothern) Turkish side of the island does not have international recognition. Despite the island's political differences, its economy relies substantially on tourism. The climate is Mediterranean, but Cyprus suffers from some water shortages and there is a small risk of earthquakes.
The 1960 Constitution provided for a presidential system of government with independent executive, legislative, and judicial branches, as well as a complex system of checks and balances, which includes a weighted power-sharing ratio made to protect the interests of the Turkish Cypriots.
The executive, was headed by a Greek Cypriot president and a Turkish Cypriot Vice President elected by their respective populations for 5 year terms, each possessing a right of veto over certain types of legislation and executive decisions.
Legislative power rested on the House of Representatives, also elected on a basis of separate voters' rolls. Since 1964, following clashes between the two communities, the Turkish Cypriot seats in the House remain vacant.
Low property prices remain low in the Republic of Cyprus compared to European standards but have been moving up rapidly in recent years. As land available is limited and EU membership is likely to bring greater prosperity, this is a trend which is 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 various incentives including duty free facilities and extremely 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 more often than not 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. 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.
Up to date property sales in Cyprus can be found on Fly2let.net the free unbiased resource for overseas property investors. For UK investment property information visit Residentiallandlord.co.uk.