Buying real estate in various jurisdictions - UAE, Cyprus, and other

[troubled soul]

There is no problem buying anything in the UAE with cash I think.
I talked to some real estate agents and they told me you can buy properties worth millions with cash easily.
Also you can buy any car here with cash as well. Really nobody cares.

If property in the UAE is a good investment is another question.
As you said, the quality is bad, looked at some villas and the quality was s**t.

Every Country Has good and bad project.
In dubai , Biggest Developer is Emaar.
Some emaar project has world class quality, Some are not that Good.
You have to see individual Project for buying .
My experience is that Only invest in Marina or Downtown.
I think It is best investment.

 

[Marc Rich]

The problem is not to buy with cash in UAE . Problem will be to bring loads of cash through customs out of your country

Easy, they use hawala from their home country. Billions of dollars enter UAE like this on a weekly basis, all cash..

 

[tyrexoid]

If you have a good connection you can buy BTC OTC with cash, or just bank transfer in your country.
Then you can cashout the BTC here for cash, there are plenty of shops where you can do that with large amounts.
Of course that would costs you a few % in total

shops that convert BTC to local cash? What are the limits, range? like, 1-2k, 10-20k ?

 

[Kol019201]

shops that convert BTC to local cash? What are the limits, range? like, 1-2k, 10-20k ?

100k+ should be no problem at all if you contact the shops beforehand.
You do not have any regulations from the state about this like in Europe.
On their website they say:
"High Volume: We do not like limits, do you? Sell Cryptocurrency in our Bitcoinshop in tiny or bulk amounts, without trade limits."

 

[RustCohle]

Another issue here would be what do you do *after* you buy the property with cash? (I know it's a slightly off topic for this thread, but I've been ruminating over this a lot) If you plan to rent it out, your country of origin would be notified of your foreign income, if you bought a house in a country that has joined CRS. I'm worried they might ask how did you buy the house in the first place, with what money (really hoping I'm too paranoid, but you never know). The only options I see here:
1. Buy only in non-CRS countries ( pro: currently bank privacy, cons: you never know when they will join CRS, plus most of the non-CRS countries are not really appealing)
2. Have someone to do property management for you in cash (very risky)
3. Don't rent it out, just hold it until you figure out get a residence permit in a country that won't bother you.

Please feel free to point out any mistakes in my logic here, I really hope I'm wrong and that there is a better way.

 

[Silvio]

Cyprus? Real estate? Until last year when Cyprus passport program was available, why would these two words even be linked together...

Someone was offering me a 2.5m eur villa 1.5 years ago which..today...is worth... eur 400k

Regarding UAE, yes it is possible to purchase property for cash, however might be tricky to find the right agency who would accept this, but yes cash is definitely very much king in the UAE

Has real estate in CY really crashed so much? Can someone corroborate that?

 

[RustCohle]

Is it possible to buy a small property (like a 40k studio) in Turkey with physical cash? They have good OTC bitcoin exchanges there and the real estate market looks cheap and beautiful. Thinking about getting a resident permit there, I love the country very much and I need a break from eussr.

 

[CyprusLaw]

i would not be surprised when you look at the amount of money you have to pay above the purchasing price.
for example, take a 500k property:
Price: 500 000€
Stamp Duty: 24 750€ + 66 000€ = 90 750€ (progressive)
Transfer fees: 2 550€ + 4 250€ + 26 400€ (progressive)
VAT: 95 000€ (25k if it is your residence)
-----
total: 712 150€...+42%

up to 500€ a year for public services
up to 2% municipal tax(10 000€)
up to 0.03% garbage(1500€)
----
annual cost: 12 000€ / 1 000€ a month..and don't forget utilities, like electricity or their really expensive water.

Sale: 20%, with 17 086€ exemption or 85 430€ if it is your residence

source: Cyprus Property Taxes, Fees and Charges

I see the same problems in Cyprus or Portugal, heard the same on Spain but haven't researched it yet. Simply put, you pay to buy, you pay to own and you pay to sell. Not to mention that most countries are pro-tenant so getting tenants out can be a headache. I would not be looking to make money there, it's more like you park your capital there to diversify but it brings a lot of headaches on top of it.

I have said this on multiple occasions, please do not state false facts claiming that they are true as you end up confusing people in this forum.

For stamp duty in Cyprus:

1. For Contracts with a value of €1 up to €5.000 there is no stamp duty payable.
2. For Contracts with a value between €5.000 up to €170.000 the stamp duty payable is of €1,50 for every €1.000.
3. For Contracts with a value over €170.000 the stamp duty payable is €2,00 for every €1.000 with a maximum stamp duty of €20.000.

So for a EURO 500,000 property the stamp duty payable on the agreement is around 900 euros.

With respect to VAT - if the property is a resale there is no VAT. If the property is a new development the VAT is 19%, if it is your first purchase and the intention is to be used as a residence then you can apply for a reduced VAT rate of 5%.

With respect to CGT:

Capital gains tax (CGT) is charged at the rate of 20% on gains arising from the sale of immovable property in Cyprus or the sale of shares of companies which own immovable property in Cyprus. Gains from the sale of shares listed on any recognisable stock exchange are excluded.

The taxable gain is the difference between the proceeds of sale and the original cost of the property plus the cost of improvements, adjusted for inflation from the date of purchase.

Some disposals are exempt from taxation, including transfer due to death and gifts between relatives. There are some circumstances in which rollover relief is available if a gain is used for the purchase of a further property. Additionally, land or land with buildings bought or otherwise acquired from 16 July 2015 and 31 December 2016 is exempt from CGT.

Capital gains tax does not apply to profits from the sale of overseas property by non-residents, offshore entities, or residents who were not resident when they purchased the asset.

Expenses Eligible for indexation allowance

• Planning Permission fees
• Water installation
• Leveling of Land
• Architect fees
• Civil engineer fees
• Enhancement expenditure such as swimming pool or installation of central heating
• Acquisition costs

Expenses Eligible for deduction from CGT without indexation allowance

• Transfer fees
• Advertising fees
• Valuation fees
• Disposal fees
• Interest
• Legal fees
• Commissions to licensed agent

Lifetime Exemptions

Disposal of private principal residence (subject to certain conditions) 85.430

Disposal of agricultural land by a farmer 25.629

Any other disposal 17.086

The above exemptions are lifetime exemptions subject to an overall lifetime maximum of €85.430

 

[glengoolie]

i linked the source, if you don't like it, take it out with them and get off my back.

 

[CyprusLaw]

i linked the source, if you don't like it, take it out with them and get off my back.

For the stamp duty it says exactly what I have told you so how on earth did you end up with 90,750 stamp duty?

You are here to learn as all of us so stop posting information for jurisdictions you are not aware of!!!

 

[glengoolie]

For the stamp duty it says exactly what I have told you so how on earth did you end up with 90,750 stamp duty?

You are here to learn as all of us so stop posting information for jurisdictions you are not aware of!!!

The stamp duty is paid by the buyer’s lawyer when the contract is signed as follows:

• 0% of the first €5000 of the purchase price;
• 15% of €5001 – €170,000 of the purchase price;
• 20% for any amount over €170,000.

170 000 - 5000 = 165 000 / 100 * 15 = 24 750€
500 000 - 170 000 = 330 000 / 100 * 20 = 66 000€
-----
24 750 + 66 000 = 90 750€

 

[CyprusLaw]

170 000 - 5000 = 165 000 / 100 * 15 = 24 750€
500 000 - 170 000 = 330 000 / 100 * 20 = 66 000€
-----
24 750 + 66 000 = 90 750€

Αξία Σύμβασης €1 μέχρι €5.000, η αξία χαρτοσήμου είναι μηδέν.

Αξία Σύμβασης €5.001 μέχρι €170.000, για κάθε ποσό €1.000 ή μέρος των €1.000 η αξία χαρτοσήμου είναι €1,50.

Αξία Σύμβασης πέραν των 170.000, για κάθε ποσό €1.000 ή μέρος των €1.000, η αξία χαρτοσήμου είναι €2 με μέγιστο ποσό χαρτοσήμου €20.000.

This is directly from the law - it's in Greek, I am sure you can translate since you know everything apparently.

It says what I have told you in my previous post. Also, there is a general cap of EURO 20,000 on the price, but to reach this cap the purchase price should have been millions!!

 

[Silvio]

Αξία Σύμβασης €1 μέχρι €5.000, η αξία χαρτοσήμου είναι μηδέν.

Αξία Σύμβασης €5.001 μέχρι €170.000, για κάθε ποσό €1.000 ή μέρος των €1.000 η αξία χαρτοσήμου είναι €1,50.

Αξία Σύμβασης πέραν των 170.000, για κάθε ποσό €1.000 ή μέρος των €1.000, η αξία χαρτοσήμου είναι €2 με μέγιστο ποσό χαρτοσήμου €20.000.

This is directly from the law - it's in Greek, I am sure you can translate since you know everything apparently.

It says what I have told you in my previous post. Also, there is a general cap of EURO 20,000 on the price, but to reach this cap the purchase price should have been millions!!

What about the rest of the stuff that he wrote:

"up to 500€ a year for public services
up to 2% municipal tax(10 000€)
up to 0.03% garbage(1500€)"

is this accurate?

 

[CyprusLaw]

What about the rest of the stuff that he wrote:

"up to 500€ a year for public services
up to 2% municipal tax(10 000€)
up to 0.03% garbage(1500€)"

is this accurate?

As someone who owns property in Cyprus and lives in Cyprus I can guarantee you that I have never paid this amounts. Please see below a more accurate break down:

What about the rest of the stuff that he wrote:

"up to 500€ a year for public services
up to 2% municipal tax(10 000€)
up to 0.03% garbage(1500€)"

is this accurate?

Not really. As someone who owns property in Cyprus and lives in Cyprus I can confirm that the amounts mentioned are not at all accurate.

I set out below a more accurate break down:

(a) Local authority fees

Depending on the size of the property local authorities charge between EURO 85 – EURO 256 per annum for regular refuse collection (this is about to change probably by next year and will be a ‘pay as you throw’ kind of thing in order to promote recycling).

(b) Municipality Tax

The municipality tax is calculated on the market value of a property as it appears in the Land Registry (which is usually lower than the purchase price) at a rate of 0.1-0.2%, once per year.

(c) Sewerage Tax

Applied by each Sewerage Board. Calculated on the market value of the property as it appears in the Land Registry, at a rate of 0.3-0.35%, once per year.