Cyprus Property News Snippets

 

VAT on Land Sales

This was due to be introduced in January 2008 which coincides with the change over to the Euro. The Cyprus Government has asked the European Commission for permission to defer this until July 2008.  Other rumours include a deferral until 2010 and that the VAT rate will be 6% but there have been no official announcements on the tax rate.

Water Supplies 

The reservoirs are reported to be down to 20% from 46% at the beginning of the summer.  That infers that at the current usage they will run dry unless the winter rain and snow in the Troodos does not replenish supplies. It will be replenished but will it return to 46% over the winter? The reserves were previously higher than 60% in a wetter cycle so reserves from wetter times have been used already. Droughts tend to run in 5 year cycles in Cyprus and as this is just the beginning of a potential 5 year cycle there are real concerns.  Likely action from the authorities will be to ban the use of drinking water for irrigating gardens and filling swimming pools.  If you want to use water for these purposes then swimming pools will have to be topped up using water from travelling bowsers who get water from bore holes and you will need a seperate tank with pump for garden irrigation.

Conversion to the euro and the Cyprus Property Market

Hidden money held in Cyprus currency notes, including cash undeclared for tax avoidance reasons or black market trade activities may surface in the closing months of 2007.

Such notes will have to be converted before Cyprus Pounds become worthless … and that buying property can be the most effective way to launder, now that might make a difference on markets!

But how risky could this be for the Seller?  Try paying in CYP100,000 in notes to your local bank.  You will have to explain where it came from and if it is black money the buyer won’t like you telling the authorities who they are…………beware don’t get involved, leave it to the Cypriot Nationals.

Is Land density for development about to increase? 

Well yes, it will.  Local Authorities review their land allocations every few years in formal Local Development Plans and it about the right time for for some major revisions to take place in Larnaca, Limassol and Paphos.  The Ministry of the Interior will have already informed these Local Authorities of new policy.  There is a strategic policy to protect the immediate coastal areas, those ajoining the sea, and it is expected that the village areas, 10 to 20 minutes drive away from the coast will have agricultural land re-zoned from 10% to 60% to allow more houses to be built and the villages benefit from economic rescue to compensate for the prosperity that followed house building right on the coast.  So here is a tip of where to buy land.         

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The Cyprus Informer™ ® ©
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