Real estate prices in Cyprus: review, trends, forecasts
Thanks to the sunny warm climate and comfortable tax regime, many Russian-speaking people buy property..
If you plan to purchase housing in Cyprus and settle here permanently or permanently, then you need to be prepared for the costs that will be associated with your property. Payment of utilities, taxes, contributions to partnerships of residents, insurance – all this accompanies the owners of houses, apartments and villas in Cyprus. But such expenses make it possible to ensure a high level of comfort and safety of housing on the island, therefore they are justified.
In this article, we will tell you what costs the happy homeowners in the Republic of Cyprus will face
Almost all European countries have an annual property tax. So it was in the Republic of Cyprus until 2017, when it was canceled for owners of all types of housing. There is only the annual municipal tax (Local property tax) left – this is a fee that covers such expenses to ensure the comfort of residents, such as: cleaning the streets and their lighting, garbage removal, etc.
The size of these payments depends on the area in which the property is located and what cadastral value it has. For example, the Limassol tariff is 0.024% for each € 1000 of the cost of housing, Larnaca – 0.023%, Paphos – 0.019%. On average, Cyprus goes from € 55 to € 185 per year.
Payments are small, but it is thanks to such a tax that the high comfort of housing on the island, the cleanliness and accuracy of the streets, the atmosphere of beauty and coziness in the Cypriot resorts are ensured – this is why many people buy property in Cyprus.
This category includes payments for water supply, electricity, gas, contributions to the partnership of owners, Internet and television.
Everything is simple here – the more you spend water, the more you pay. There is also a minimum fixed rate that you will have to pay in any case – these are quarterly payments of about € 20. And surcharges for the used amount of water are already added to them.
On average, spending on water is small, if consumption is economical. But with an increase in water consumption (exceeding 120 m³ over 4 months), tariffs change to high. For example, a family of 4 people consumes, on average, 0.6 m³ of water per day. With such an expense, payment for water supply and sanitation per month will be from € 22 to € 40. And if we are talking about the residents of a house or villa, where there is a house plot, a garden or a pool, then their water consumption will be about 0.7-0.8 m³ per day, since they need to water trees, a lawn, and add water to the pool because its evaporation. And the payment for water supply in such a family will be much higher. Many owners of mansions with vast adjoining territories (from 1,500 m²), for this reason, drill their own water wells to get water for free.
An important point about water: in Cyprus there is no central hot water supply, cold water is supplied to the residents, and they decide the issue of heating independently. On the roof of each private house or residential complex, structures from water tanks that are heated by the sun are installed. In the warmer months, hot water is obtained in such a natural way. In cold seasons, water-heating equipment is used – boilers for electricity, gas or diesel.
There are two tariff options for paying for electricity: single-rate (when the rate does not change during the day) and double-rate (when the rates are different day and night, cheaper at night). The second option is chosen by the owners of electric heaters, which accumulate heat. They are turned on at night, when electricity is cheaper, they heat up, and then all day they give off heat already off.
Compared with Russia, the payment for electricity here in apartments and cottages is higher than in Russia, because the work of devices that create a comfortable microclimate of the premises is constantly necessary: air conditioners in the hot season, heaters and water heaters in the cold. And today, payment for electricity in Cyprus is the largest expense item for property owners.
According to 2019 data, a family of 4 in a two-room apartment in Cyprus (80 m²) pays for electricity from € 25 to € 60 every month. For families living in homes, costs are around € 100-150 per month.
Unfortunately, the island does not provide for central gas supply, so residents are forced to buy gas cylinders on their own, which cost € 10-20. One such cylinder can be used for two to three months, if someone lives in the apartment or house.
The most popular Internet service providers in Cyprus are CYTA, Primetel, MTN, Cablenet, Cyprusinternet, Nova Cyprus. All companies have their own tariffs, which can be found on their official websites. But on average, payment for home Internet (speed: 40-50 Mbit / s) is € 30-40 / month. When you connect the package with a TV and landline phone, the costs will be € 40-60 per month.
In residential complexes where there is a swimming pool, playgrounds for children, a sports area and other infrastructure, there are contributions to the partnership of owners to pay for its maintenance. This is the maintenance of the cleanliness of the territory, the pool, the repair of equipment in children’s play areas, etc.
The owner of a 70 m² apartment of a middle class residential complex with a communal pool and a recreation area pays about € 50-100 / month. As for private houses, many residents of Cyprus themselves take care of their adjoining plots or pools. When hiring staff, you will need to pay € 100-200 per month.
These payments are optional. If desired, the owner of the house or apartment can insure housing against theft, weather, fire or vandalism. There are a lot of insurance programs in Cyprus, and their cost consists of many factors, for example: the “age” of the building, the materials from which it is made, the cost of housing and property in it, insurance cases. On average, insurance for an apartment that costs € 150,000 will be € 200-300 euros annually.
To understand how much money it takes to maintain Cyprus housing per year, let’s look at the cost of a standard and inexpensive apartment in Paphos.
Take for example apartments worth € 85,000-100,000, with an area of 70 m², which are located in the suburbs of Paphos, in a middle-class residential complex with its own swimming pool. A family of 3 will live in the apartment, and she lives there permanently. The estimated cost per year for the maintenance of such housing will be as follows:
-payment of municipal tax – € 150;
– contribution to the partnership of owners – € 600;
– payment of electricity – € 1200;
-payment for water supply and sanitation – € 120;
– gas purchase costs – € 50;
– Payment for Internet services, TV and phone – € 600.
Total: € 2,720 per year.
If the apartment will be used inconsistently throughout the year, then expenses will decrease, as there will be less consumption of water, electricity and gas.
As a rule, all expenses for the maintenance of housing in Cyprus are covered by automatic debit of funds from the owner’s bank account. It is opened at the stage of buying real estate and all the necessary payments are tied to it.
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