Gray Stuart – CYPRUS

From international offices is UK and Asia we have people on the ground we are able to help International property buyers and Investors in many ways. Some of services include the following.

Buying the Best Property in the Cyprus

Very simply we offer our International clients the best of both worlds in that we have proven experienced local knowledge on the ground as well as international expertise from having made many different transactions throughout the world.

If you need to buy a property for your retirement or wish to invest to take advantage of the Cyprus property investment market we will be able to assist you in that requirement.


Setting Up a Business in the Cyprus

Very simply our professional directors can help you with the set up your company structures in the most tax efficient manner possible. We only use the very best Lawyers, Accountants and professional advisors to make sure your company structure is 100% safe and secure and the very best you can have in the Philippines.

Most importantly our Cyprus partners in this part of the business have access to all the right people and can connect you with the any Cyprus business you may need to partner with to establish your business here and make it grow.

Commercial Leasing and Rental requirements

If you’re looking for the right office premises for your business or you need to find your newly recruited Ex-Pat staff the right quality accommodation so they can focus on working 100% for you without any issues then our professional local team can help you with access to the very best residential and commercial properties available in the local market.

Asset Management

If you’re an investor and already own assets in Cyprus just acquiring them then our team of professionals can offer you the complete asset management services including property management and project management.

These are just a sample of the key services that Gray Stuart Cyprus provides and should you need any further information do not hesitate to contact us directly.

Gray Stuart Cyprus


Asia        +63 977 829 1489

UK          +44 20 7558 8355

Why Invest in Cyprus Property?

Last updated January 2018

Cyprus is positioned at the crossroads of Asia, Africa and Europe unrivalled connectivity to all three continents. Important Landmarks for Cyprus was becoming a full member of the EU in 2004 and joining the Eurozone in 2008. With 340 days a year of sunshine and 57 Blue Flag Beaches Cyprus has the climate to attract and keep international investors and their families.

Since the long publicized problems of earlier in the decade Cyprus has gone from strength to strength having reinvented itself as a tax haven for businesses and High Net Worth Individuals (HNWI) and now has one of the most favorable tax and business friendly regimes in Cyprus

Tax Benefits of Cyprus

 VAT – only 5% on the first property Purchased, instead of 19%

 Purchase a property with VAT and you pay 0% Transfer Tax. Saving of approx. 6%.

 No Inheritance Tax

 Low Personal income Tax (1st €19500 tax free)

 Lowest Corporation Tax in Europe at 12.5%

 If you do not live in Cyprus for more than 183 days per year then no personal tax is payable.

 Property yearly running cost less than 1% including local Taxes

 One off property stamp duty less than 0.2% of the property Value

Setting up a Cyprus Company

 Set up completed in 4 days, cost only €2000

 Lowest Corporation Tax in Europe at 12.5%

 Financial Company licensing in Cyprus allows Business rights in all of Europe

 Register as an “Intellectual Property Holding Vehicle” and pay only 2.5% Tax

 0% Tax on Dividends

 Tax losses carried forward for up to 5 year

 No Exchange control on the movement of Funds

 Profits from the sale of Shares and any other financial instrument, such as Bonds or debentures

are exempt from tax

 Double taxation with over 40 countries

 Confidentiality and Anonymity of the Beneficial Owners

Another big driver for inward investment has been the EU permanent residency and EU Passport and Citizenship program. Just through the Gray Stuart network we are aware of over 500 Million Euros worth of investment into property and that does not include the additional investment from those HNWIs moving business interests and setting up new business in Cyprus.

The Cyprus economy currently has GDP of 17.4 Billion Euros which is made up of 81.7% of services, 15.9% of Industry and 2.4% of Agriculture. The Economic trends are good for the future with GDP for 2016 at 2.8%, 2017 at 3.1% and projected at 2.5% for 2018. 22% of the economy is based on Tourism and 34% on Real Estate. Finally another major positive factor was company registrations were up 27% in 2016.

Property investment in Cyprus

In the second quarter 2017 market research by RICS they made the following observations

Market Capital Values

The Property Price Index has recorded increases on an annual basis in all cities and asset classes, with significant increases being recorded in Limassol, Nicosia and Larnaca, whilst Paphos and Paralimni have shown smaller annual increases.

Market Rental Values

Across Cyprus, on a quarterly basis rental values increased by 3.0% for apartments, 1.0% for houses, 2.0% for retail, 3.7% for offices and 0.7% for warehouses. Compared to Q2 2016, rents increased by 8.3% for flats, 10.2% for houses, 6.8% for retail, 14.4% for offices and for warehouses 4.2%. All asset classes have shown a consecutive quarterly growth.

Appraisal based initial yields

At the Q2 of 2017 average gross yields stood at 4.1% for apartments, 2.1% for houses, 5.4% for retail, 4.3% for warehouses, and 4.9% for offices. The parallel reduction and/or stabilization in capital values and rents are keeping investment yields relatively stable and at low levels (compared to yields overseas). This suggests that there is still room for some repricing of capital values to take place, especially for properties in secondary locations.

If we then turn to the PWC 2017 first half report they report the following transactional Volumes

  • 20% increase in sale contracts across Cyprus
  • Limassol recorded the highest growth in no. of sale contracts during H1 2017 (33,4%), compared to H1 2016, followed by Famagusta (28%) and Nicosia (23%)Real estate price evolution
  • Residential property prices increased by 4% as per RICS Index in Q1 2017 compared to Q4 2016
  • Commercial property prices as per the RICS index recorded a quarterly growth of 4% for retail properties, 3% for industrial properties and 3% for offices

Foreign Transaction Activity

  • 106% increase in sale contracts filed by foreign buyers compared to H1 2016
  • Paphos and Limassol appear to be the preferred cities by foreign buyers during this period

High-end Residential Property Segment (€1,5mln)

  • 59% increase in sale contracts for high-end residential properties compared to H1 2016
  • Limassol attracts c.60% of transactions in the high-end residential property
  • Construction Activity, In terms of value, 34% increase was recorded in building permits issued across Cyprus

So Now You Have the Facts What Does this Mean for Cyprus Property Investment?

From an Gray Stuart point of view as 95% of our clients are buying via the Golden Visa or Golden Passport it’s very positive in that what they invest in is likely to have both rental yield and capital growth even if there primary reason for buying the property was a residency or citizenship based decision. So this should also be a positive point for those who are thinking of retiring to Cyprus or relocating from a colder European country.

Saying all of the above the other benefits such as very low taxation, residency or Citizenship and Business friendly government are much more likely reasons to invest in Cyprus property but the bottom line here is Cyprus has many good reasons why you should consider investing in Cyprus property.


The Buying Process in the Cyprus

Last updated January 2018

This Guide is meant to be a quick get up to speed guide to what makes buying in the Cyprus different to other countries we would however strongly recommend that you get your free copy of our Buyers Guide by clicking the link below and we will send it to you straight away. Please note that our system does require Mobile Code Authentication before sending the brochure out.

The Buying Process

The legalities of purchasing a property in Cyprus are extremely straightforward and wholly safeguard the purchaser’s rights. Gray Stuart has broken down the complete purchase process into ten simple steps to provide a comprehensive overview of all the stages you’ll go through. We regularly provide progress updates and photos, ensuring our clients are always aware and fully informed about the status of their investment.


Property financing options in Cyprus include:

  • Outright payments
  • Mortgages or loans

Gray Stuart executives can help you choose the financing option best suited to you.


The first stage of purchasing an off-plan Exclusive Hot Property entails payment of a reservation fee. A nominal deposit of €2,000 is required to reserve a property with a purchase value under €500,000 and a deposit of €4,000 is required to reserve a property with a purchase value greater than €500,000. Reservation fees are transferable to another property or family member for a period of one year.


EHP recommends that clients take independent legal advice from a local lawyer and are able to refer you to a number of reputable lawyers in Cyprus.


The Cypriot legal system is British based. All contracts of sale are private agreements between the vendor and purchaser and must by law, be in writing. EHP prepares all contracts of sale in English and it is a language recognized by the government authorities


Once you have signed your contract of sale, your lawyer should file this with the Land Registry within 180 days. This is termed “Specific Performance’ and ensures your beneficial rights to property ownership are legally protected. Once filed, your contract of sale cannot be withdrawn by anyone other than yourself, meaning that your property cannot be leased, sold, transferred or mortgaged without your consent.


This is a one off payment borne by the purchaser and is payable to any Taxation Office of the Republic. Your lawyer can make the payment on your behalf, which is due within 30 days of signing the contract.

Property Value Stamp Duty
Up to €5,000 0%
€5,001 – €170,000 0.15%
€170,001 & above 0.20% (with a maximum stamp duty amount of €20,000)


Upon transfer of the property and registration in the purchaser’s name, the district Land Registry office will charge transfer fees.

These are based on the market value of the property at the time of purchase and are calculated as follows:

Value Rate
Up to €85,000 3%
€85,000 – €170,000 5%
Over €170,000 8%
  • For those who pay VAT on their house purchase, property transfer fees are waived.
  • For those who do not pay VAT on their purchase, property transfer fees are reduced by 50%.
  • Property Transfer Fees become payable after the issuance of title deeds, when the property is transferred to the purchasers name.

Quick Guide for purchasing property in relation to Golden Visa and Golden Passport sales

This is somewhat different as this is for new properties and the buying costs are somewhat different.


Let’s take example of property purchase of €300,000 for PR:


  • Client chooses property either Overseas  or during Inspection Visit in Cyprus
  • Client pays reservation fee of €5000
  • Clients lawyer will oversee the purchase procedure
  • Sales Agreement is signed by both parties
  • Client has 30 days from signing to pay €200,000 (normally client decides to pay this amount immediately so to start the PR application)
  • Client needs to pay 19% VAT and apply for the rebate of 14% VAT; Clients only need to pay 5% in the end
  • Clients lawyer will make application for PR
  • PR is approved and issued within 2 months from application date
  • Client pays balance of €100,000 within 15 days after PR is issued and also takes delivery of property


In the event of a property purchase of €2,000,000 for passport application:


  • Client chooses property either Overseas or during Inspection Visit in Cyprus
  • Client pays reservation fee of €10,000
  • Upon signing sales agreement the client will need to pay full amount of €2,000,000 + full amount of 19% VAT
  • The payment of €2,000,000 is held in joint account between clients lawyer and the developer
  • The rebate of 14% VAT (where applicable) is received several weeks after Passport is issued
  • Clients Lawyer makes passport application
  • Passport approved in 3 months / the Passport will be issues in a further 3 months
  • Payment of €2,000,000 is released to developer
  • Client takes possession of his property or properties according to the sales agreement



Both the cost of living and property running costs are pleasantly low in Cyprus.


A service charge is applicable for properties on a managed development. The cost depends on the area of your property (m²) and the facilities and service available at the specific development. The service charge ranges from €350-1500, every six months (for standard type developments).


This is similar to Council Tax, and is usually around just €50 – €200 per year.


Immovable property tax has been abolished as from January 2017.


This is provided at no cost until your property is delivered. Thereafter, the property owners need to have buildings insurance in their own name. EHP network can offer annual premiums from €260.


From delivery, we recommend that owners take out contents insurance. The EHP network offers annual premiums from €35.


There is a standing charge per quarter of €12 – €13, depending on the area, plus consumption costs on a sliding scale as follows:

Cubic meters € cent (5% vat not inch)
1-15 0.43
16-30 0.55
31-45 0.67
46-60 0.82
61-65 1.45
66-75 2
76+ 4


The bi-monthly charges for the supply of electricity (at the basic price of €300/m.t. of fuel cost), are given below:

Units (KWh) electricity Total units unit charge consumption cent/KWh fixed charge based on total €/bi-monthly
first 100 units 0-120 13,50 2.06
next 200 units 121-320 14,31 2.12
next 180 units 321-500 14,75 3.49
next 500 units 501-1000 15,18 5.30
Any additional 1001+ 15,35 6.68


There is a standing charge for a landline, which is approximately €16 per month. The actual call charges are very reasonable.


Subscription packages are available from €25 per month, and include a wealth of channels such as BBC World, Discovery Channel, and CNN etc. Prices vary according to the channels selected.




Cyprus Location Guide

Cyprus is strategically located between the 3 continents of Asia, Europe and Africa and currently has a population of 1.1m People. The land size of the Island is 9,251 KM2 with two international Airports. The official languages of the Island are Greek and English and Cyprus has a very high standard of Education as well as excellent Healthcare and a very low crime rate and is one of the safest destinations to visit or live within the Earthen Island joined EU as a full member state in 2004 and the Eurozone in 2008 and the Island derives its wealth from two major sectors Tourism that makes up 22% of the economy and Real Estate that makes a massive 34% of the economy.

With 340 days of Sunshine a year it’s not hard to see why Cyprus has such a high level of tourism and boasting 57 blue flag beaches Cyprus truly is a great place to be for tourists and international Ex-Pats who have now decide to reside in Cyprus full time. Cyprus in the south part of the Island has two major locations Limassol and Paphos; Paphos is famed for its archaeological sites relating to the cult of Aphrodite, including ruins of palaces, tombs and mosaic-tiled villas. With Limassol being the more of the tourist hot spot and Pathos offering a more sedate tourist experience. Nicosia and the north of Cyprus also has a lot to offer. Cyprus has lots to do with marvelous beaches and mountains and for those prepared to move away from the tourists hot spots there are some amazing sites to be seen.  Below is brief information on the major tourist areas of Cyprus.


Limassol is a city on the southern coast of Cyprus. It’s known for the centuries-old Limassol Castle, home to the Cyprus Medieval Museum and its collection of pottery and tombstones. On the seafront is the Prokymea (Molos) Sculpture Park, with sculptures by Cypriot, Greek and international artists. To the northeast is the Limassol Archaeological Museum, exhibiting artifacts from the Neolithic to the Roman periods.


Paphos is a city on the southwest coast of the Mediterranean island of Cyprus. Inhabited since Neolithic times, it has several sites relating to the cult of goddess Aphrodite, whose mythical birthplace was at Old Paphos (Kouklia). New Paphos is the modern city that incorporates the harbor, and the ancient ruins of tombs, fortresses, theaters and villas at Paphos Archaeological Park.

Aiya Napa

Ayia Napa is a Mediterranean resort town on the southeast coast of Cyprus, known for its beaches. The town’s main landmark is the storied, Venetian-era Ayia Napa Monastery, which stands in the central square of Plateia Seferi, surrounded by bars and clubs. Freshly caught seafood is served at Ayia Napa Harbour’s busy tavernas, while adjoining Pantachou Beach offers a stretch of golden sand.


Larnaca (Larnarka) is a port city on the south coast of Cyprus. It’s known for Finikoudes Beach, a sandy strip in the city Centre backed by a palm-lined seaside promenade. Buzzing bars line the waterfront at Mackenzie Beach. Just offshore, the M.S. Zenobia wreck is a popular dive site. The 9th-century Church of Saint Lazarus contains the tomb of the saint said to have risen from the dead.