Property Buying FAQ's

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Mortgages

Many people finance their Cyprus property by extending the mortgage on their UK home. Although this is usually the easiest method of raising finance, by doing this you will probably find that interest on the loan cannot be offset against any rental income you receive. In other words, you could be paying 100% of interest out of you pocket, when you don't have to!

Cyprus banks are renowned for their slowness in processing applications and inflexibility. However, since joining the EU in 2004, some banks are improving their mortgage service considerably:

• Some banks are offering loans of less than 3%
• Percentage of borrowing can be as high as 80% of the property value now
• The previous 15 year maximum loan term is often extended to 20 and in some cases 25 years.
• It often makes sense to consult a professional IFA, rather than take the first deal a developer offers you. See our affiliates page.

The law in the UK regarding pensions has changed. You can now start a SIPS pension. This is a self-administered fund that allows you to purchase rental property in Cyprus as well as the UK. The property may not be completed until April 2006. All rentals and subsequent disposal are free of ANY UK Income or Capital Gains Tax, and remember pensions are only taxed 5% in Cyprus!

So with some Pre-VAT properties still available off-plan and prices set to increase significantly after Cyprus joins the Euro in 2007, now is a great time to invest.

Check our Property FAQs, Tax and affiliates pages on this website, contact WOW Cyprus for more information by clicking on the link below, or visit our Contact page for local UK and Cyprus telephone numbers.