F.A.Q. - Frequently Asked Questions

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During the 70 years of our involvement in construction, we have developed unique skills of service.

1. Buyers: of our homes will be buying freehold properties, each with its own freehold title, registered at the local Government Land Registry office of the district.

2. Payment: may be cash upon completion or by taking advantage of our company’s financing facilities up to 4 years, depending on the project or 10 – 15 years through a Bank loan arranged by us at low interest rates.

3. Our Prices: are most reasonable while our quality of construction and timely delivery are yet to be matched. We are definitely proud for our “value for money” products.

4. Ownership: Until 2003, the Government carefully monitored the ownership of property in Cyprus by foreign nationals. Since the membership of the European Union (1/5/04) these measures were lifted, a development which resulted in increased demand on property ownership on our island.

5.Transfer of property: takes place at the local district Land Registry Office, a Governmental central organization of land and immovable property on the island. Note: Since the actual title deeds are issued only after completion and inspection of the building by the authorities, the buyer is advised to lodge his contract with the Land Registry Office (L.R.O.) when he buys on plans. This legal action is called “Specific Performance” and acts as a blocking safeguard until the actual official deeds are prepared by the appropriate government departments.

6. Cost of transfer: of title from vendor to purchaser is scaled as follows:

Purchase Price (C.P)

Fees Payable (C.P.)

1 -50,0000

3%

50,000 -100,000

5%

100,000-upwards

8%

*In case of joint ownership by husband and wife, the charges are scaled downwards since the fees apply to the one half of the purchase price for each buyer.

7. Annual costs: These are very low compared to annual property costs in the U.K and Europe.

a) Local authority Tax: C.P20-C.P50. This covers garbage disposal, street lighting and general services by the local authority.

b) Annual Property Tax: For market values, based on 1980 prices, up to C.P100,000 there is no property tax.

From C.P100,001 – C.P250,000 Tax C.P2.5 per Thousand.

From C.P250,001 – C.P500,000 Tax C.P3.5 per Thousand

From C.P.500,001 – upwards Tax 4.0 per Thousand

Market values are adjusted downwards to the year 1980, taking into account the inflationary index. For example, the market values of the year of purchase (e.g. 2007) have to be adjusted downwards to the year 1980 by taking into account the inflationary index 1980-2007. This means as an example, that a market value to-day of C.P 200,000 is probably valued at around C.P.60,000 in 1980 and hence there is no property tax. Properties not yet registered to the name of the buyers are taxed at approximately 60% of the purchase price.

8. Moving your household to Cyprus: d.g Lordos Estates Ltd will provide the name/addresses of reputable firms that will undertake this task at reasonable cost .

9. Insurance: Our Company is responsible for insurance cover against fire, earthquake and flood during construction. After delivery the costs are borne by the purchaser. Insurance Costs range at approximately C.P1.75-2.10 per thousand pounds.

10. After sales management: Our Company provides after sales management by looking after your property maintenance as well as paying your bills at reasonable costs.

11. Common expenses: These are applicable only in the case of common ownership (such as co-dominions) or in the case where a common caretaker is employed or common facilities such as pools, tennis courts, communal gardens etc exist and are quite reasonable.

12.Legal fees: Our Company uses the same contract of sale for the last 15 years. Should a client wish to have a legal opinion (recommended) we can give you a list of 3-4 lawyers to apply to. These lawyers are very familiar with our contract and their fees are reasonable, normally not exceeding £1.000.

13. Can I let my property? Any legal owner of immovable property in Cyprus can let out his/her property. The question of tax comes into play though and if the owner is tax resident of Cyprus the rental income is liable to income tax (according to the tax brackets above) and defense contribution (3% on gross rent less 25% for expenses). If on the other hand the owner in not a Cyprus Tax Resident then the rent income will be subject to income tax only.

Please note: The information offered above can be used as a guideline. However we cannot offer complete professional advice. For any additional or more detailed information please seek professional advice.

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