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Information for Cyprus Expats on Cyprus property rules and regulations, provided by Antonis Loizou & Associates
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© Antonis Loizou & Associates
05/06/2011
Q Dear Mr Loizou,
I would appreciate some information on one aspect of selling a house in Cyprus. Apart from allowances and indexation, i understand that the cost of additions, alterations, repairs, etc may be eligible for offsetting Capital Gains Tax, e.g. painting the house, repairs to house structure, building a pergola etc.
I have kept all the receipts that have to do with maintaining the house and proofs of builder/painter charges for repairs and additions. Am i sensible in retaining all these invoices, or do certain records apply for offsetting Capital Gains Tax?
A Please note the following:
Under the Capital gains law, the chargeable gain is adjusted for inflation, but certain exemptions apply to individuals for the disposal of their main residence
1. The €17,086 for any property disposed of
2. The deduction rises to €85,430 if the property has been the main residence of the taxpayer for a minimum period of 5 years. To take advantage of the full allowance, the land on which the house is built must not exceed 1,500 sq mts.
Further allowances are for "allowable expenses"
Property Transfer Fees, Stamp Duty, Estate Agents Commission, but only if the agent is licensed with the Cyprus Real Estate Agents Association, Legal Fees, Accepted Capital Additions and Improvements, planning permission where necessary.
Maintenance costs and normal repairs are not deductable. As such, only the pergola possibly is deductable, as an extension, provided you have a permit for it.
Indexation can be applied to the above expenses as well as the initial purchase price and must be submitted with invoices and receipts for the costs incurred. Additional allowable expenses are also granted for :
Immoveable Property Tax, interest on loans used to buy the property, assuming that the interest payments have not been used to offset other tax liabilities e.g Income Tax. These expenses cannot be indexed.
No.626
Q.: Dear Mr Loizou:
I read your weekly articles with great interest. Now I have a query of my own.
I own a three-year old home in Ineia village. Recently, I noted that the ceiling in one of the ground floor bathrooms was starting to flake very badly due to dampness. The water ingress was clearly from a first-floor tiled patio deck, located immediately above the bathroom. As ------ will not accept any responsibility, I arranged to pay to have the patio deck repaired. The results were quite astounding: (1) there is no evidence of any damp-proofing of any kind (no bitumen, no membrane, no 'tanking'), (2) there is no evidence of water-proofing the expanding bolts that secure the railings and pergola into the deck, (3) the tiles have been laid apparently using regular (i.e. not waterproof) grouting and, finally, (4) the water overflow outlet has not been connected to the down-pipe (there is builder's rubble between the two).
Surely this must be a breach in the Building Regulations? If so, is there any way in which I can hold this builder to account? Is there any Authority I can approach on the matter?
Sincerely,
Doug
A.: The contractor ought to have built the property based on the specifications attached to the contract, as well as based on plans. If what you got is different, you might have a legal case. The point is if you do not have the details, how can you prove that the contractor is at fault. On the other hand the contractor must use reasonable care and building practice for the construction and not be protected under the 12 months guarantee regardless. It is a legal issue I am afraid and you must seek solicitor’s advice Doug.
Regards,
A.P. Loizou
3/31164-td
8.6.2011
No.624
Q.: Dear Mr Loizou,
I read with interest your article in last week's Cyprus Weekly about the building amnesty. About 5 years ago we installed a swimming pool - 7.5m by 3.5m. Can we apply for an amnesty for this pool? I would prefer if my name is not mentioned if you include this as a letter in the next Cyprus Weekly as I would not want the Mukhtar to find out!
Regards
J. S.
A.: Do it. This is not a major violation and I do not expect any serious problem to secure the certificate of approval. Nothing to lose J.S.
Regads,
A.P. Loizou
3/31162-td
8.6.2011
Νο.623
Q.: Dear Mr Loizou,
I have lived in my villa for five and a half years now and my developer informs me that he has the final completion certificate and that title deeds are "imminent". I would like to build a car port using wooden or steel supports with a canvas/sail cloth cover. Do you think this is something which I could now go ahead with or do I need to wait until title deeds are issued?
Many Thanks,
Mr B.McGovern
A. What you intend to do I would do it. But then, you are so near to the deeds why risk it my friend? So, wait for a few months having waited for the last 5½ years.
Regards,
A.P. Loizou
29/5/2011
Νο.618
Q.: I was filling many papers the other day and I have come across your promise to offer to your readers to have an one stop shop for real estate (dated 2008/Feb). Have you changed your mind, since I have checked your website and I have not found anything on this lovely and most useful idea of yours.
George Drake
A.: I have not progressed this for the reasons that I have reported in the same column. I am working however on another similar idea together with the international auditors KPMG and the international law office of Andreas Neocleous. We hope that we will be able to produce something for your scrutiny and comment within the next 2-3 months in the form of a guide of “Living & Doing” Business in Cyprus.
Regards,
A.P. Loizou
3/31128-td
30.5.2011
No.619
Q.: The building amnesty laws is one thing. As with any law, these are open to interpretations either on a “positive” or a “negative” side i.e. when the Town Planning Officer will look upon the applications will they look upon them with a spirit to help or with a negative attitude? Your thoughts on the subject please.
Andie Christos
A.: I will be disappointing I am afraid. Civil servants are what they are by Cyprus standards. Arrogant and “know it all” attitude, with no sympathy on the applicants and their problem is a problem. We have little chance of success to meet the amnesty, unless the attitude is changed. I have ideas and I have submitted the same to the Minister of the Interior. I doubt that we will be successful in our efforts.
Regards,
A.P. Loizou
3/31127-td
30.5.2011
No.620
Q.: Do you think dear Mr Loizou that the Building Amnesty will work to the extent that enclaved buyers with their property being mortgaged by the developer will have a solution at the end of the day? I am referring to the previous amnesty cases.
Ria Lenos
A.: A difficult question to answer Ria. In a nutshell if you pay your analogy of the mortgage debt (e.g. if the developer owes €1 mil. in a project of 10 houses and you offer to pay €100.000 against the mortgage) you will get a mortgage release. Then you can sue the developer for the €100.000 you have paid. You will, in this sense, get your title, but then you will have a long way to go to collect your €100.000 over and above the purchase price. It is better than nothing, since otherwise what choice does one have?
Regards,
A.P. Loizou
3/31125-td
30.5.2011
No.621
Q.: I have this idea dear Mr Loizou which might appeal to you and Cyprus Weekly. Could you not provide a CD/or a site of your own, which will contain your articles and the Q & A column? The writings offer a wealth of information for all us newcomers in the Cyprus for the real estate market to note. Even if you are to charge for this service say €10 p.m., it will be dead cheap when compared to the thousands of euros of bad mostly legal and other advice that we get. There is nowhere in Europe that I have experienced this sort of free service that you provide, let alone the letters that you reply personally without being published. Should you so wish to extend on a subscription basis I am sure that even if you charge €3.0 p.m. per reply, you will have a not necessarily profitable business, but a most useful service. Have you considered to approach one of the local banks to finance this venture? As I have you “in file” I am sure many others do. I know also that many others so called experts, copy you for their own financial benefit. Lets do it in a business way in the form of a unique Real estate Cyprus library.
Martin King
A.: A lovely idea Martin. I am looking for a person who can do this and let him get the financial benefits. I am open to discussion for any dedicated person, who can take on this work on a serious and professional basis. The sky is the limit, since the site could host other participants such as international accountants, tax people, banks etc etc.
Thank you for your idea and lets see if offers are coming, since it needs a catalogue of subjects etc etc. It needs work I am afraid, something for which I do not have the time to do at this point of time.
Regards,
A.P. Loizou
3/31126-td
30.5.2011
22/5/2011
No.614
Q.: Dear Mr. Loizou,
I have a problem which I seem to be getting conflicting advice, and being an avid reader of your column over the past few years my thoughts turned to you a source of trustworthy information.
I am a Greek Cypriot living in the U.K with my British husband, spending three to four months a year in Cyprus, staying in my family home, the Deeds of which are in my name, my mother 'having wrote into my name' in 1972, before she died in 2006. The property is in a prime position in the middle of Limassol.
I am over retirement age and (planning for the future) wish to transfer the property to my only child (daughter) who lives in England. My husband and I hope to continue our holidays in Cyprus for as long as we can, but inevitably the time will come when we will be unable to make use of the property at some stage in the future.
Before this happens I want to transfer the property to my daughter, so that should anything happen to me, the property would be in her name, thus avoiding all bureaucratic and legal problems in the event of my demise. It would then be up to her if she wished to sell the property, as she & her family live and work in England.
The purpose of making the transfer now is to pass the property to my daughter so she will have as few bureaucratic complications as possible, as she neither speaks Greek or has any real contacts here.(Cyprus)
Not living in Cyprus permanently I am unfamiliar with the system, and seem to be getting conflicting advice/information. In England it would be a simple matter of making a will naming my daughter as the beneficiary, but I have been told that wills have little standing in Cyprus, it would also mean going through some tortuous legal avenues, which I discovered when my father died in 1992, when every thing was in his name, that took months to sort out. This route therefore would seem to be a non starter.
I have contacted the Land Registry Office and was informed I need to fill forms plus form 313 and also produced stamped documents from the Tax Office, Council Tax and also the Waterboard. On top of that they indicated I will need to pay 4% tax/levy of the value of the property. This would seem to be a ludicrous amount of money, especially when inheritance tax in Cyprus is zero. Other people I know who have transferred, do not appear to have paid this tax/Levy.
I am left wondering whether there is a formal way of doing this or is there, as you so often put it in your advice column, a 'Cyprus way'!
Any advice would be appreciated.
Yours sincerely
Greta Holman
A.: Thank you for the comments you made about my person. You can visit the Lands Office and have the property transferred on the name of your daughter by gift. The cost is minimal but you will need the services of a land clerk to prepare the documents for transfer (cost of land clerk around ±€300). Should you for any reason wish to retain with legal rights for the use of the property, you can effect transfer of the property subject to your life interest, i.e. meaning that as long as you live, you can have the use/ income of the house. When the time comes the reservations of the title (i.e. the life interest) can be lifted by producing the certificate of death (in any case you can lift the restriction before death at any time should you so wish). What you were told at the Lands Office regarding the 4% is the value of the property as at 1.1.80 or earlier. This rarely amounts to any serious amount, so check with the Lands Office the amount and do not be so worried. Regarding the sewage taxes etc again these are minor amounts and I doubt if at the end (without knowing your property) will cost more than €500 or so. All pay the tax so there is no discrimination against you Creta.
Should you so wish we could put you in touch with a land clerk with whom you can negotiate his fee and he will be in a position to lay down the cost prior to proceeding. Do not worry. It is not as bad as you make it. This is the Cypriot way and there is no other way to do it.
I hope I am of some help.
Regards,
A.P. Loizou
3/31101-td
23.5.2011
No.615
Q.: You promised dear Mr Loizou to come back to your readers on the subject of the Building Amnesty. The laws have passed something like 2 months ago. Any news on your part?
Anna Cruz
A.: I have not forgotten you Anna. I am still trying to understand the laws and I will come back to you in one month or so.
Regards,
A.P. Loizou
No.616
Q.: I remember in your article in this lovely paper that there will be no more water cuts. Yet the other day living at Ayia Anna village, we had the water supply cut for 2 days.
Carlos Tevezh
A.: Having spoken to the local authority this was a technical property with the water pipes. Nothing to do with the shortage of water supply. It happens dear friend.
Regards,
A.P. Loizou
No.617
Q.: A crazy law if anything. We have an apartment in a building of 12 months having a common swimming pool. Yet, now at the very end prior to the issue of titles we were told that our pool is classed as being public requiring a lifeguard at all operational times. How can it be public I ask you? What do you think?
Kate MacMillan
A.: I agree with you Kate that some laws that we have are completely stupid and this gets an “Oscar of stupidity”. There is a proposal at the House to charge this, but I do not expect that this will happen earlier than 1-2 years. In the meantime we will have a problem.
Regards,
A.P. Loizou
3/31105-td
23.5.2011
8/5/2011
No.606
Q.: Objectionable web site by third parties deleted?
Garry & Lara King
A.: Yes. I repeat, whoever reports his/her views publicly and which are subject to a libel suit etc, must take the consequences. The objectionable site which has hosted all sorts of “Dockers” language has been removed after our lawyer’s intervention.
Regards,
A.P. Loizou
No.607
Q.: We live in a house and we are now building a swimming pool. Our site location has “breathtaking” views and our architect suggests to have a vanishing edge pool, so that when we swim “it will be like you swim in the sea”. We tend to agree but then the cost is approximately €7.000 in addition. What do you think dear Mr Loizou, is it worth it?
Leslie & Mark Adams
A.: If you can afford it my friends go for it. But then have the vanishing edge on the site of the view only. This should reduce your cost by approximately 1/2.
Regards,
A.P. Loizou
No.608
Q.: Storage heaters or central boiler heating? What are the pros and cons? We are urgently needing your advice since we “hear” all sorts of well meaning bar and other consultant’s.
Mark Philips
A.: Storage heating is lovely since you do not need oil tank, no smoke, no chimney etc etc. On the other hand storage heating needs at least one day to operate and one day after to stop emitting heat. I will opt for the boiler heating since our home at Platres village has this problem (storage heating) and when we decided on spot to go, we could not. Both systems have the telephonic switch on and off. Get alternative estimates and your decision must depend in addition to the initial cost (higher for the boiler) as well as the frequency of use depending on your own circumstances.
Regards,
A.P. Loizou
No.609
Q.: I know about sougla and how popular it is in Cyprus. But yet we are told that the ash that inevitably sets on the meat may be hazardous to our health.
A reason to worry?
Mahmoud Abbassin
A.: I do not know about the health hazard, but I understand that this is the prevailing opinion. I will not miss the sougla for this, but then it is not a dish that you have everyday. Pleasures of all kind must be treated with some form of “restrain”.
Of course you can opt for the American type of B.Q. which is cooked on gas fire. Nice but tasteless with no comparison with the charcoal. So try to learn how to make B.Q. with real charcoal. Note that once the charcoal “reaches” the temperature that you wish, do not use the fan, because this is what creates the ash which settles on the meat. It take a bit of training (2-3 times) dear Mahmoud.
Regards,
A.P. Loizou
No.610
Q.: I attended your public speech at Amathus Hotel regarding town twinning between Limassol town and St. Petersburg. I paid particular attention to the part of your speech of the “worrying increasing numbers of mixed marriages between Russian women and locals”. Any objection for the Russian women marrying Cypriots Mr Loizou?
Angelina Terazov
A.: Not at all and you are using my speech out of context lovely Angelina. Approximately one in 8 men in Limassol marry a foreign woman. My point is what about the local girls? I did add if you remember that after 10 years or so we will have a new race of Cypriots, taller, blonder and better looking perhaps. It was a joke and it should be taken as it was said. Sorry if I was misunderstood.
Regards,
A.P. Loizou
No.611
Q.: I understand that you are a good friend of Mr A. Christou the Mayor of Limassol. He speaks highly about you and I want to use your good contact to solve the problem we have regarding garbage collection. Can I depend on you to help us?
Lenia & Christos
A.: I am a friend with most of people (not to say all) in Government (and not only this one). Tell me about your problem in some detail and I can see what I can do provided you are in the right.
Regards,
A.P. Loizou
No.612
Q.: I was told that you are a regular diner at Pissouri village restaurant (X). I visit the place regularly to get to know you, but you were not there. Any chance that we could meet at (X) at my treat?
Bozzo Krahial (Iranian)
A.: My dear friend thank you for your complement and invitation. Call me or write through this paper and I am sure I can address what you want me to address. I thought Iranians are more “sold to” Larnaca. But what do I know. We as Greeks and Iranians have a long history of wars and friendship, through Alexander the Great and Darius etc etc. Us, of the generation of 2000 years after, I am sure we will have a lot to discuss amongst other things.
Regards,
A.P. Loizou
No.613
Q.: We were in Court the other day and the opposing parties have a different view on the question of value/compensation. One of the opposing solicitors suggested that we should use an “independent and honest” valuer and your name was put forward. The judge said “I quote” Mr Loizou is one of the best who fits this specification. I know you from the articles of this lovely paper Cyprus Weekly. I accepted immediately. My question is “are you in good terms with the justice system in Cyprus” or your reputation surpasses you??
L. Adam
A.: I am well with everybody because I try not to be dogmatic and one sided. I am not aware of your case but if I am appointed both sides will be treated fairly. Being in practice for 32 years in Cyprus plus another 4 years in the U.K., I feel that I have the qualifications to be independent. I am touched however by your approach for which I thank you deeply.
Regards,
A.P. Loizou
3/31050-td
9.5.2011
8/5/2011
No.602
Q.:
Dear Sir,
Your name has been recommended by Mr B.F., who is a bank manager at the Hellenic Bank here in Paralimini.He does not know you personally, only by reputation.
My problem is, I purchased two detached properties in June 2006, for completion in June 2007. They are still incomplete. I did pay the majority of the cost, on the insistance of my solicitor Mr C.Ts. in Paralimni. He is now denying this.
Both of these properties remain empty as we cannot sell or rent them,They were recently attacked by Graffiti idiots, and are falling into disrepair.
I am at a loss as to know what to do to get these properties completed. I hope you can please help me.
Yours Sincerely
(name withheld)
A.: Examine your sales contract and see what recourse you have. Evidently the developer is in breach of contract and you can sue him for the value updated (returning the property to him upon court decision and payment) or proceed with their completion using your own contractor (we might be able to help you through our own civil engineers on this) and retain from the balance you owe him the cost, plus loss of rent/damages etc. You must use the services of a solicitor and I agree with you that it is a matter of urgency since unused property causes all sorts of hidden damages (plumbing, rising damp etc etc).
Regards,
A.P. Loizou
3/31034-td
2.5.2011
No.603
Q.: Dear Mr. Loizou
I read with great interest your column about real estate matters in the Cyprus Weekly.
We are owning a property ( a stand-alone house) in a very small complex. There is a total of (besides me and my husband) 6 houses (all apartments or maisonnettes).
As after 14 years we finally get our title deeds (it was a complicate story and I was personally very much involved to speed up the matter at the Land Registry offices), we need to set up as what you suggest a private buyers committee company.
1. what is the cost to set up such a company?
2. what is the procedure to set up such a company?
3. Is it necessary to involve a lawyer or can I do this myself? (I am the only one in the community to speak and read Greek)
thank you so much for your valuable help and answer
Christine Sidler
P.S. I am Swiss and not English, this makes me somewhat frustrated that all relative problems (real estate, taxes, etc.) are always related to UK and CY law..
A.: An administrative committee is not a separate Co. You must call a general meeting, ……. a committee which you will register with the Lands Office. Read the common expenses law and have a go Christine. You can ask the Lands Office to guide you along.
Regards,
A.P. Loizou
3/31031-td
2.5.2011
No.604
Q.: Dear Mr Loizou,
My name is Kenneth Hodgson and I hope that you will be able to help with our problem.
I help administrate an 8 apartment block in Larnaca. We have problems with an owner not willing to pay his share of the community charges. We have a lift that has been out of service several months as they will not pay a share of the repair costs either as my wife and I are 60 this year as you can imagine getting to our 2nd floor with our groceries is becoming very difficult
I read your article in the Cyprus Weekly regarding these sort of problems and so we approached the Land Register Office as was suggested in that article to register as legal administrators but were told that this process in no longer in use.
We also approached a lawyer in regarding suing this owner but they did not know or were not willing to take on this problem.
Can you (Off the record) give us a lawyers name in Larnaca (if possible) that has carried out this sort of case so we can quickly bring this matter to an end?
Thanking you in advance
(name withheld)
A.: I enclose for your record a couple of lawyer names and tel.nos. Indeed following your letter I was informed myself by the Lands Office that it does not register such committees – Shocking I say as it is contrary to the law provisions. I suggest that you put it to your solicitor to act based on the general agreement you have, or as this is stated in the law. Not a clear way to succeed but I would like to follow up your action.
Regards,
A.P. Loizou
3/31030-td
2.5.2011
Νο.605
Q.: When we agreed our contract back in 2001, there was no mention of the development being a communal one nor that the cul-de-sac that our bungalow fronted was a private road. At a meeting with the developer, our solicitor and other residents some months after we moved in, we were told by the developer that a separate deed would be issued for all the common areas and all residents had to sign and agree to this otherwise the developer would hold the deed and charge us all for any work he or his sub-contractors carried out . This we have in writing from the developer. The only thing the developer has done in the 8 years we have lived here is to get a garden company to plant a few shrubs/trees in the various green areas and some of the residents, ourselves included, have planted, weeded and kept the grass cut back on the green areas attached to our individual properties. Now the deeds are due to be issued within the next couple of weeks and we are now being told that the Mukhtar will be responsible for the upkeep of the green areas but that ALL the residents on our development will now be responsible for the upkeep of the communal areas, footpaths, private road and also must take out public indemnity insurance to cover people using the private road. All properties on the development either front or back onto this private road but none of those just backing onto the private road are willing to make any contribution to cost of insurance cover and any future repairs that might occur. We have, through our solicitor, asked the developer to write to each property owner informing them of the legal requirement to form a committee and to contribute funds for all costs incurred but the developer has refused to do this. To add to our problems, of the properties fronting the private road, 2 are rented and 2, possibly 3 are for sale and of the remaining properties, 3 are holiday homes, 1 is rented and 1 is for sale out of a total 20 properties. We moved to Cyprus hoping for a peaceful retirement but all we have had is problems . Please could you tell us what the Cypriot law is, if any, in a case like ours. Have we any comeback for not being told in the beginning, nor have it listed in our contract, that this was a communal development and what our responsibilities would be.
Any advise would be much appreciated.
(name withheld)
A.: I must say dear reader that I have found your letter quite confusing, so the answer I provide you is from what I have understood.
(a) I cannot comment on whether you are told or not regarding the comprehensive nature of your development. Some people find it an advantage since private roads can be gated with remote control gates etc.
(b) If the “green” area is public then the local Authority will pay for the upkeep as are the public roads, street electricity etc. If not and the green is private, then you do (as well as for the upkeep of private roads and lighting the same).
(c) I cannot understand what sort of document the developer has asked you to sign. Perhaps you may refer to the General Agreement which you ought to have signed at the stage of signing the sales contract.
(d) It is very unfortunate that the developer or some of the residents are not cooperating. I would suggest you examine your sales contract/general agreement and ascertain your rights and see if you can take a private action.
(e) Rented properties and properties for sale have their owners to be responsible for the common expenses and not the tenants.
(f) In order to ascertain whether you have a recourse I must look into your sales contract (for a fee – regrettably).
Regards,
A.P. Loizou
3/31039-td
3.5.2011
24/04/2011
No.598
Q.: We own a plot of land which is the result of an agricultural field subdivision. The front plots have access onto a public road, but the rear ones (one of which is ours) have a right of way. There are in total 12 plots and some houses have already built mainly at the front. We wish now to build on our own plot which is sizeable (3.500 sq.mts.). Is there something for us to watch out Mr Loizou?
Stephan Gaffney
A.: There are many things to watch out Stephan. In general however, only one house can be built on one plot independently of its size. The right of way must be 12 feet wide at least and its distance/length from a public road must not exceed 100 mts. Bear in mind that in an agricultural plot division only 10 housing units can be built in all the plots. So the first 10 who secure the building permit its O.K. The rest will lose their right to build. Also the right of way can be used for only 4 housing units. So check how many houses use the same right of way that you have. There are other parameters but these are the main ones.
Regards,
A.P. Loizou
No.599
Q.: Our house fronts onto an earth road which is the cause of nuisance since every time a car passes by there is a lot of dust, let alone the mad, pot-holes etc during winter. Can we surface the road with say asphalt and if yes, do we need a permit to do it even for the part that our house fronts?
Peter Hingston
A.: Yes you need a permit. However I would suggest to go the Cypriot way and do it without, at least as you say for the part of the road that you front. Make sure that the road on site is in the correct position with reference to the site plan, since it happens that such roads tend to deviate 1-2 meters on site.
Regards,
A.P. Loizou
No.600
Q.: We front onto the beach yet between our plot and the seaside there are numerous trees planted on Government owned land. Our neighbors suggest that we cut these trees down, so that we have unobstructed sea views. We do not want to find ourselves on the wrong side of the law Mr Loizou. So, we ask you, if we are within our rights to do it.
Sherry & Ray Beck
A.: You have no right to cut down the trees. I could suggest that you prune the trees (be it slightly illegal) at the lower end and clean the ground vegetation, but cutting down trees needs a forestry permit (which I doubt that you will secure).
Regards,
A.P. Loizou
No.601
Q.: Our land has overhead E.A.C. lines of a high voltage. We wish to build in our plot and we asked the E.A.C. to remove the lines, so that we have an unencumbered plot. The Authority refused, saying that it was up to them if and when the lines will be removed. Do we have any rights and can we challenge the E.A.C. for refusing to re-position the lines?
Pierre Aundri
A.: In order to evoke your rights you must submit an application for a town planning permit. If you secure a permit there will be conditions on the development, e.g. that you may not build underneath the lines, to have a distance of 12 mts. away etc etc. This is a restriction in the free use of your land, causing it a reduction of value-loss. In this case you can sue the Authority for the reduced value, plus cost of architectural, legal and valuation fees etc.
Regards,
A.P. Loizou
3/31020-td
(27.4.2011)
17/04/2011
No.589
Q.: Hi
I would be grateful if you could provide me advise on a property which my wife and her sister own equally in Paphos, Cyprus. Both my wife and her sister are resident in the UK and the property in Cyprus was bought as an investment. Unfortunately, the prices are very low for Cyprus property and the rental market is very weak. There is a mortgage attached to the property but it is getting increasingly difficult to service the Cyprus mortgage with the nominal rental income from this property. I wanted to know if it is possible to have the property repossessed as we cannot afford to keep it and should we stop paying the monthly mortgage? We would like to lose the Cyprus property but only as long as we can do so legally.
I would be very grateful for your expert advice on the best solution for us.
Best Regards
Chetan
A.: The financier can repossess the property if you have failed to pay the mortgage and in addition delayed payments might attract a 13% interest rate. Also if you are a personal guarantor, repossessing the property is one thing, but then the financier has the right to sue you for the balance. All these if there is a title deed. If not the situation gets complicated for the financier (in your favour). I suggest that you speak to the financier and come to some sort of an agreement to “buy” the property from you, so that you get rid of the problem – be it at your loss or seek a rescheduling of the loan by paying lower instalments at the initial period.
Regards,
A.P. Loizou
3/30993-td
18.4.2011
No.590
Q.: Dear Mr Loizou, Our house and our neighbours are built on a plot registered with the Land Registry as one plot. As such we and our neighbours are ‘jointly’ registered as owners of the plot. Prior to purchase we realised that our ‘plot’ was larger than our neighbours and arranged for a legal agreement that both us and our neighbours understood the basis of the division of the whole plot. On the ground this is backed up by a brick wall that splits ‘our’ plot from ‘theirs’ that has been in place for some 35 years or more. Both of us agree that it would be sensible to split the plot into two and have it registered with the Land Registry as two separate plots. Our neighbour has all necessary permissions/final certificate and title deeds. We had the same, including title deeds, until adding an extension so we are waiting a permission and new final certificate which should be forthcoming in the next few months. Our questions are: Can we apply to split the plot before we have achieved our new final certificate? Is splitting worthwhile anyway? We have been told it will be expensive and could take many, many years to achieve. There does not seem to be any problem in either of us selling our houses (since we sell our ‘bit’ of the plot to the new owner and our neighbours can do likewise) and the only other issue is that we have to sign off any extension/changes they wish to make to their house and likewise they would need to sign off any changes to ours. We would appreciate your view.
Kind Regards
Steve & Mae
A.: Getting a separate title as opposed to a title represented in shares is very valuable. Share ownership entails home damages so try and get a separate title. Once you secure your certificate of final approval, apply for a division permit and then register the buildings on each ones plots. This might take approximately 12 months or so and the cost is next to nothing.
Regards,
A.P. Loizou
3/30994-td
18.4.2011
Νο.591
Q.: We live in a mountain village and we wish to plant our 3.000 sq.mts. garden. We do not want to spend loads of money in fencing gardening, neither we are at the age that we can look after the garden ourselves physically.
Could you please give us a range of cost so that we can plan ahead?
Anthony & Janette Hanna
A.: Look around you my friends and see what sort of trees are local, carob, olive, pine etc. I suggest that you do try to buy trees of some age (say around 1-2 years), be it at a cost of around €30/each and do not opt for the very small but lower cost €2.0 each, since it takes years to grow. Make sure that there is earth (not rock) underneath the routes and invest in a borehole with an automatic irrigation system (total cost for your 3.000 sq.mts. around €5.000, but it will save you in labour and be almost unmanned). Make sure that the site is fenced since goats and other animals tend to feed on young trees. You will need the services of a visiting agriculturist say once every year or use the services of a local farmer.
Regards,
A.P. Loizou
No.592
Q.: What do you think of adopting a plastic grass for our garden? It looks almost similar to the real thing, it needs no maintenance and no water. It will cost us approximately €1.000 for a patch of 50 sq.mts., but then we do not want to concrete over the small garden that we have.
Any views Mr Loizou?
H. Jaber
A.: I will tend to agree with you for such a small area. It is only in the mind and had I not seen this plastic grass in a house of a friend of mine at Protaras, I would not have believed the similarity with the real thing. The owner is delighted with it. So, go for it my friend.
Regards,
A.P. Loizou
No.593
Q.: I am a handy man and very good in building and repair small jobs. Yet the village muchtar told me that I must be a licensed builder in Cyprus in order to undertake this job.
Please can you guide me in this?
Jack
A.: For small jobs you need no licence etc. If your appetite grows however and you want to venture into bigger things, e.g. building a garage, a swimming pool etc, you will need to be registered (not a big thing) builder. Whatever you do my friend, do not get involved in electrical installations, small or big. A fatal mistake on your part will get you in trouble in addition to the fact that anyone who handles electrical installations must be so licensed. Also issue receipts on your name. It takes only one to report you. There are many jealous people around and you never know.
Regards,
A.P. Loizou
No.594
Q.: I was together with a Russian business friend the other day and I tried to persuade him to buy the home next door to mine. He refused, saying Cyprus is very near what is happening in the Middle East. Our endless discussion over Cyprus attraction did not produce any results to the positive. I know that you might find my question strange, but it is important for me. Could you give me some solid arguments dear Mr Loizou?
Spasiba (thank you in Russian).
Alex Trident
A.: What an open ended question Alex. Your friend has of course always the option to move to China and the Far East, but, then it is close to nuclear affected Japan.
Jokes apart, Cyprus strong point are mainly:
• Very low crime rate
• No terrorists around
• Daily connection with Russian
• “Friendly” locals and Government
• No extensive corruption (see Spain and Italy he will be shocked)
• Reasonable cost of living and cheap vodka!!
• Similar religion as the locals – Easter etc
• One Russian church, 2 Russian newspapers and a sizeable Russian community
• Taxation 10% is a major attraction
• Foreign schools for his children – English spoke but everybody
• See our article on Passports for Cash/Permanent residence with home buying (if he needs them)
• Russian restaurants and supermarkets (mainly in Limassol). If he is a sporting person, use the golf courses number – now 4 in 3 years time at least 6, if he is fun living, show photos of the wine festival, the carnival, the Easter celebration, the 1st of May flower festival etc etc. May be his children will love some of them.
From there on and if he is being difficult to persuade, invite me over for a B.Q.!! I will provide the meat and the wine as well as the cooking. Unless I make a mess of it, you have your partner persuaded!!! (sorry for the light-hearted reply). However recently I was invited by one of the big 4 auditing firms hosting their Russian partner and I took along something (I provided the local groundnuts). Not only he was delighted, but I am still sending him over to Russia on a regular basis a kilo a month. He reciprocates with caviar!! Not a bad trade on my part dear Alex.
Regards,
A.P. Loizou
No.595
Q.: Our architect suggests that we have a heated pool since he insists this will elongate its use over the whole year. We are permanently living in the island and we live every minute of it, but we find the cost of maintaining the pool temperature prohibiting (around €100/p.m.) for the winter period. What shall we do since we like the whole year idea, but it must be at a reasonable cost.
Your views please.
Rozy Ferdinando
A.: A bad idea. You can use the pool over 6-7 months a year. It will cost you approximately €20.000 to install the heating equipment, plus yearly maintenance and as you say €100 p.m. additional running cost for the winter months. It is up to you of course, but is it worth it at the end unless you wish to use the pool daily. Considering your “off” days, cold days and rainy days (not many) I do not think it is worth it. Use a hotel pool instead on your cost saving. A heated pool will increase the water temperature by 1-1½ degree only. So not much gained in my opinion.
Regards,
A.P. Loizou
No.596
Q.: Could you not report all the letters in your Q+A column? It started with 10-12 letters and it is now 3-4, most of which are elongated letters and you give a reply in two lines. Why not have more short letters and replies? Could you pass on my request to the editor? My wife and I and our neighbours have a discussion session and we exchange ideas on your writings and the good and bad of the local situation.
Hans & Jenny
A.: I will pass your request to the editor but it is up to her. I reply to each and every letter personally as well as through the Cyprus Weekly. I get something like 10-15 letters a week. Please refer to our website where you will find all Q+A.
Thank you however for your encouragement my dear friends.
Regards,
A.P. Loizou
Νο.597
Q.: You are the only free voice in Cyprus trying to offer advice and protect foreign buyers of real estate in Cyprus. Yet by chance we visited an unknown person website which reproduced a recent article of yours on Bank Guarantees and no titles. I could not believe the language and the standard of his website and the respond of some people. Instead of encouraging you to carry on you have been accused for all sorts but in a most objectionable way. Will you respond dear Mr Loizou? Remember I am the person whom you saved €15.000 in capital gains tax based on your advice. Us who love and support you must get together and pledge our confidence in you.
Lena + Friends
A.: I am aware of the goings on. But this is democracy I am afraid. I always say, anyone can express his views but in a proper and not offensive way. Thank you for your support and I remind all those with “a no title” issue that it was me who has invited the Minister of Interior at Paphos to explain the situation (6 years ago), which as a result of this and many other events, ended up with the building amnesty and the new protection of buyers bill. I wonder my dear friends at times whether it is worth my effort, since I have a business to run as well.
Regards,
A.P. Loizou
3/31001-td
19.4.2011
No.587
Q.: Dear Mr Loizou,
I read your column in the Cyprus Weekly every week and I have gained a lot of knowledge on many aspects of the common use expenses but I am still having trouble collecting!!
We built a complex of shops(some have become restaurants) and apartments and all our establishments have title deeds. We had to build a septic tank which is large and 3rd grade. We had to build this septic tank as we are very close to the sea.
Title deeds have been issued now for 6 years and all establishments sold have been transferred to their owners. On the title deeds there is a percentage that states MERIDIO STIN KINOKTITI IDIOKTISIA (share of the common ownership). Is this the percentage I use to come to the total that each owner owes from the total of the common use expenses for the month.
We have an electricity bill for the septic tank, a maintenance man who checks the pumping station a few times a week and does everything necessary for it to run smoothly. The other expenses are water rates, admin fees, cleaner who cleans the gardens , stairs , outdoor areas etc and whatever else comes up that is in relation to the common expenses. Is my calculation correct?
I look forward to your answer.
Thank you,
B. Mitsingas
A.: Common expenses are based on the individual units covered area as a percentage to the whole. Your calculation in order to be correct you must follow this formula. The deed reference of the share of each unit in the common ownership, relates to the ownership of the land as a percentage ownership of each unit.
Regards,
A.P. Loizou
3/30965-td
11.4.2011
No.588
Q.: Dear Mr Loizou
With reference to you Advice Column
Can you please advise? I have a village house situated in the centre of a village , i.e. in a 90% build area.
The house and plot combined occupy 186square metres of which 86 square metres is covered. I have recently built a wooden storage shed/workshop measuring 4 metres x 2 metres i.e. 8 square metres.
I have been told that this needs planning permission, Is this correct ? if planning is needed , how do I obtain retrospective planning consent please ?
G.G. PLEASE DO NOT USENAME & ADDRESS
A.: What you are told is correct, but, should you wish to go the Cypriot way, do not bother. Should you wish to go down the proper way, you can apply for a permit after the event, by submitting plans to the local planning authority. As an alternative route you can apply under the building amnesty with an architect filling the forms etc. In this case you will be called upon to pay a small compensation (as a guess, the rates have not been set as yet it will be around €1.000).
The fact that you have built something and then apply for a permit, it is a norm in Cyprus and there are no reprecautions.
Regards,
A.P. Loizou
3/30966-td
11.4.2011
No.573
Q.: Dear Mr Loizou,
I enjoy reading your column in the Cyprus weekly very much.
I have an urgent question to ask you regarding purchase of agricultural land.
I am EU citizen while my brother is a citizen of third world. We are thinking seriously to purchase a piece of agricultural land in the suburb of Nicosia. The land is about 29,000 square meters. My brother will fund the purchase. He intends to buy this land as a gift for my 5-year old twins, who are Cypriots. My question are (1) is he allowed to buy this land? (2) What is the maximum he is allowed to buy as a third-world national? (3) If not, can I buy this land as a EU citizen? (4) What are complications for later transfer the land to my girls if the land is registered under my name or my brother's name? (5) What are the regulations for building villas on this land? (6) Are there anything that I need to watch out when I purchase this land?
Thanks for your prompt response in advance.
Lisa Ioannou
A.: A non E.U. member cannot buy land in excess of 4.000 sq.mts. However he can fund the purchase and have the land directly transfer to your children. An E.U. citizen is treated as a local, thus, no restrictions. If the land is transferred onto your name, you can then transfer the property to your children as a gift (practically no cost for this). The land may not be registered on our brother’s name as I have stated before. Building (presumably) on agricultural land, this regulation depends where it is situated i.e. within the local plans or the Dilosi Politikis area. Generally speaking and provided the land has access from a public registered road at least 4.0 meters wide, one house only can be developed. Possibly up to 4 subject to many other circumstances. Should you want us to be specific, it will have to be on a fee payment basis, I am afraid, based on the characteristics of the actual plot.
Regards,
A.P. Loizou
3/30948-td
4.4.2011
No.574
Q.: Dear Mr. Loizou,
There is not a single week when I don’t read your column in the CW. I highly appreciate your information given for free – in contrast to advice from local lawyers for which you normally have to pay dearly and which too often is not accurate (to say the least).
Our present committee has just discovered – after nearly two decades of existence of the development – that the General Agreement only comes into force in full after the title deeds are issued. It therefore has announced it will step down as a committee with immediate effect. A ‘working team’ will replace the committee. But this team will carry no responsibility. There will be no AGM! The ad-hoc committee decision seems to be an attempt to re-transfer duties from the owners to the developer.
Is the committee ‘coup’ legal? Who is liable in business activities with third parties?
G.O.
A.: When you bought the unit you must have signed a general agreement relating to the Management of the project. The committer will carry out the work be it not registered within the Lands Office or not. You will need to carry out an AGM based on the general agreement and you will carry out business as usual. The committer will not have other legal power to sue etc (but see your general agreement not under the law but under the general agreement). I don’t see how this is an attempt to pass on the job to the developer, unless your general agreement states so. The committee provided it was elected based on the general agreement I hold the view it is legal, but it must form into a body so it has a legal entity. Set up a private buyers committee co and this may be one solution.
Regards,
A.P. Loizou
3/30944-td
4.4.2011
No.575
Q.: I live in southern Italy and I have a home at Protaras. I am planning to visit this fantastic beach (for those who do not know Fig Tree Bay) and I understand that a seaside footpath is under construction. My question to you is, being on a wheel chair, can I use the footpath with the wheel chair? I apologize for this rather odd question but I have written 2 times to the Municipality on the subject without having a reply.
Paolo Pavlo
A.: Approximately 4 kms will be ready by summer and you can use your wheel chair. It is the best footpath I came across in Cyprus and you will enjoy it. Having some photos in the office, I forward the same for your information. All the best.
Regards,
A.P. Loizou
No.576
Q.: We have applied for a planning permit and our architect told us that we will get a reply within 3 months from the application. Five months have passed and no reply yet. Shall we worry that our application will be turned down?
Melissa & Joey
A.: The law stipulates a 3 month reply, but the norm is near 6 months. Yet your architect must chase the application or should you want to do it, pay a visit to the local planning office and find out where the matter stands. I do not think that you have something to worry about (if your architect has done a proper job).
Regards,
A.P. Loizou
No. 577
Q.: I love Cyprus but I love even more fishing. Coming from Australia fishing for me is not only a challenge, but a good sport. Before committing to buy a home in Cyprus, could you inform me whether I can depend on fishing in this island?
George Aranjo
A.: I must disappoint you I am afraid. There is very little sea fish around but then (based on what I see from National Geographic about fishing in Australia etc) there are other ways to fish (placing hook lines during the evening etc). No comparison I am afraid. So in an effort not to lose a Cyprus friend, rend for a while and perhaps I can introduce you to some local fishermen who could take you out to realize yourself the situation. A word of caution. Should you catch a fish in Cyprus do not throw it back in front of local fishermen!!
Regards,
A.P. Loizou
No.578
Q.: I note your sensitivity for the hoteliers and others in the mountain resorts. You come from a hotelier’s family and I ask you, could you not take one step further and pressure the Government to do “something” about the revival of the mountain resorts? Being a chartered accountant myself, from Prodromos village, but having not the charisma that you have to put forward your ideas in a clear and unbiased manner, could you not submit a comprehensive policy for the unfortunate but very worthy people living in the mountains?
Chrissis Stavrou
A.: Thank you for the complement Chrissis. Don’t think that I have the muscle that it takes to “pressure” the Government as you say. I am a small voice in the wilderness amongst vested politics interests etc. You did give me an idea however and I will think of something to publish in this lovely paper. From there on we will need a wide support from all of us ex-mountain families to help along. Not an easy job since we will come up against the strong towns hoteliers groups.
Regards,
A.P. Loizou
No.579
Q.: After 12 years of waiting we are interested to have our property transferred on our own name. The developer’s bill stipulates the property tax based on the assessed value of the title, but, then, we are charged with an 8% interest rate on delayed payments. Notwithstanding the fact that we were never billed for the purpose, the developer is refusing to have the property transferred unless we pay up. We find this very objectionable and we intend to fight for it (this bill with interest amounts to approximately €1.000). Our solicitor says “go for it” but we want your opinion dear Mr Loizou.
St. Kattamos
A.: There is no clear answer, I am afraid my friend. The developer could not charge you the property tax before, since he did not know the level of the tax (the tax is set when the individual titles are issued). However he himself is charged property tax on the whole project mainly based on the land value without individual unit charges. You are liable (but please study your sales contract) to pay the property tax that it is due by you after delivery. If he opt not to charge you, not knowing himself the tax on your particular building and provided he paid for it (or is charged as such by the tax authorities) he charged you the interest. So it is a matter of fact in order to find out what interest he was charged etc. Bear in mind that when you pay you can claim it back if you own a property in Cyprus no more than €170.000 from the tax authorities. Do not be dogmatic about this, although I am informed that certain developers etc charge the tax without paying for it. So get the developer bill, get the analogy of your own property and an interest charge will be then in line. Regarding the solicitor advice – ignore it, I am afraid, since his fees will be double (but provided you are happy with the charge).
Regards,
A.P. Loizou
3/30949-td
4.4.2011
No.580
Q.: We have a private road in our estate. We have decided to place a remote control gate. We were told by some locals that we cannot do it. Yet I see private gates everywhere. Is there any catch on this Mr Loizou?
Leslie & Others
A.: Private roads can be gated and you require no permission from anyone. Make sure however that it serves its purpose, visitors coming in, going out etc. For this reason make sure that you have an electronic eye for the exit and in addition to the remote control, a key on the side so that visitors can get in (or yourselves if your remote does not work etc).
Regards,
A.P. Loizou
No.581
Q.: I have seen president Sarkozy in the TV. saying that a pending second recession is coming. Do you think that this is true and whether it will affect us again more seriously than the first time?
Mrs Nat Shell
A.: What do I know Nat, if Mr Sarkozy says so? Let us keep our fingers crossed and ask Carla to tell him to say more positive predictions. Regarding our future in Cyprus, if we find gas, I hope we might have a better future but then this Government gets our below pass mark for its economy management.
Regards,
A.P. Loizou
Νο.582
Q.: I wanted to have a stone built house but when I realized the cost I have opted for an external facing stone. I was told to use Karysto facing stone but then this is only found in the Troodos region. My house is in Limassol and I will feel stupid to opt for a stone from another place. Any suggestions Mr Loizou?
Pat Koufos
A.: There is the brown Limassol facing stone which you can use or even better the white Limassol stone. Having a facing stone is O.K. but should you wish to be looking real, opt for rake out joins (the plaster to have grove inbetween) and even better (and more expensive) between the joins use small pebbles. This might cost you over and above the ordinary plaster/paint around €50/m. more.
Regards,
A.P. Loizou
No.583
Q.: We want to build a proper garage in replacement of our existing car-port. Will we need a permit?
Michael Poulias
A.: Yes you do. Should you want to go the Cypriot way however, do not bother. Provided that the garage has a distance of 3.0 mts. away from the main road and make sure that you tell your neighbour so that he does not report you and careful so that the roof rain water does not end into the neighbour’s yard.
Regards,
A.P. Loizou
No.584
Q.: We want to use the traditional Phini village bricks (our new home is in the Troodos region) but we were told to opt for the Italian imported facing bricks. How can we feel that we have a “traditional” built home if the bricks are Italian We ask you dear Mr Loizou?
Michael Sheen
A.: I appreciate what you say Michael but the local village bricks are not what they were. Sometimes (the new ones) melt away, other times they produce salt on the outside etc. Using the imported Italian brick (facing) which are of very good quality and ever lasting. Make sure that the brick layer can do a good job. Make a 2 sq.m. sample prior to your decision.
Regards,
A.P. Loizou
No.585
Q.: We are building a B.Q. and the chimney is over 5 meters above ground. WE are worried whether the smoke will affect our neighbour and cause us trouble. Shall we use a smoke arrestor?
N & K Soames
A.: Do not worry. You cannot control smoke and it will go everywhere. Unless you B.Q. everyday you have nothing to worry, whereas using real charcoal, the smoke arrestors do not work. If you have some sort of objections and you want to be friendly, ask your neighbour for a B.Q. That should do it!!
Regards,
A.P. Loizou
No.586
Q.: I know that in this country there are sorts of regulations and laws but what people do not necessarily abide. In our project we have a general agreement saying that the external appearance of the buildings cannot change etc. Yet one-two of the residents have decided to change the white colour paint into earthly colours. What can we do?
Stephen Jonach
A.: You are quite right in your opening comments. Look at your general agreement whether the change of colour classifies a change of external appearance. You can choose to go all the way down the general agreement that you have all signed, or depending on your building permit to report the matter to the local authority. Unless the colours used by your neighbours are objectionable and notwithstanding the fact that I agree with you, give the matter a miss Stephen (I know that you might feel stupid when others can and do get away with it, but ask yourself, if it is worth it).
Regards,
A.P. Loizou
3/30951-td
6.4.2011
No.565
Q.: Dear Mr Loizou,
Having read your articles in the Cyprus Weekly for several years, when I wanted my land valued, you were my first choice, as I respect your opinion and common sense.
I had it valued, and got my report dated 31 Jan.
I bought the land as a separate plot in Jan 1989, but soon found out that it was a part of a larger plot. I planned to come here to live at the end of the millennium, and cancelled my idea of building a holiday home there. A few years after buying it, the agent who sold it to me went bankrupt. I was advised to sell at a loss, but decided to keep the land, and risk losing it. I arrived here to live in 2000, and changed my Advocate, the new one saying that there was no chance of me losing the land, so I started to pursue the process of getting the deeds.
It has taken 8 years of fighting, and over 100 meetings to get permission and agreement to build an access road, which is now almost complete. There is a steep hill leading to the new road, which is owned by Chloraka Board, who have promised over several years, that they would tarmac the hill when we built our road. The Mukhtar is now flatly refusing to do it, despite arguments from his subordinates that they had promised. It is imperative that the hill is done, as it is muddy, and in wet weather is inaccessible to cars or people. Rain will pour down the hill onto the new road, which has cost in excess of 100,000 euros, and it will carry mud down the full 150m of the road. It will also undermine the road, which has a 4m drop at the bottom of the hill.
This leaves us, the 3 owners, to have to pay for the hill as well as the road. Personally, I am down to my last few euros, and the money from the sale of the land is to go to my wife to buy her a house in England where she has recently gone to live to be with her 4 young grandchildren - all under 4years old.
Just to add to it, the Insolvency Practitioner asked for 3,980 euros as the liquidators fees to change the name on the original deeds, and 6 weeks later, has now told me that the Capital Gains tax was not paid on my purchase, so I have to pay that, about 4,500 euros, before the deeds can be changed. It seems crazy that I should be paying this f
