O’Dwyer assault case drags on into sixth month

Nathan Morley
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THE CYPRUS Property Action Group (CPAG) has expressed outrage at a series of delays in the Conor O’Dwyer case, involving an alleged beating by the property developers with whom he is in dispute over a house purchase.

Father-of-two O’Dwyer, 39, has been jetting back and forth from England since January to be present at Paralimni court hearings, only to be faced with a series of obstacles and adjournments.

The case was brought by O’Dwyer after he claimed that a local developer, his son and another man beat him up following an incident outside a disputed house in early 2007.

O’Dwyer spent a week in Larnaca hospital after the alleged attack.

Conor O'Dwyer pictured in hospital, recovering from the alleged assault
Conor O'Dwyer pictured in hospital, recovering from the alleged assault

CPAG spokesman Denis O’Hare told the Cyprus Mail that this case was politically loaded and being closely monitored by his organisation and interested parties.

“We are very frustrated; we see this as typical of the legal system here. Basically he has been beaten up…and to make matters worse he has now been assaulted by the legal system here,” he said.

Some legal commentators have expressed bewilderment that a straightforward assault case should be dragging on for so long and questioned why O’Dwyer has been forced to fly from the UK on six different occasions since January this year.

One criminal lawyer, who has been following the case, told the Cyprus Mail he was astounded by events at Paralimni Court.

“For an assault which lasted no more than 10 minutes to result in the complainant having to give nine days of testimony is simply ridiculous and unheard of. Furthermore, this man who is a foreigner, should be given court time priority and not treated in such a shameful way,” he said.

O’Dwyer says the incident has blighted his family life. He claims he purchased a house in the tiny village of Freneros in 2005 that was then was resold without his knowledge by the developers.

He claims the spat resulted in him losing the house and £100,000 he had paid for the property.

The problem started when O’Dwyer took issue with the developer because they were not sticking to the original plans for his house and garden.

Following a series of heated exchanges, O’Dwyer then contended that developers cancelled the contact, accusing him of not paying the next instalment.

He claims the developers then sold the house to someone else, telling him they were keeping his UK£75,000 for damages.

In a rare public statement last year, the developers accused O’Dwyer of allegedly masterminding a plan to extort a newer, more expensive property and exorbitant damages from the company.

O’Hare told the Cyprus Mail that the continuing setbacks of the O’Dwyer case just add more worry to the Cyprus property sector’s battered image.

“Whatever way this case goes, the ensuing publicity about the delays and so forth will do no good whatsoever for Cyprus and its image. We all want this fixed, it’s a shame“, he added.

Last year O’Dwyer began protesting about his plight outside the Cyprus High Commission, spending 74 nights sleeping in a tiny tent on the streets of London.

He widely publicised the details of his property dispute with the developers on YouTube and on the website lyingbuilder.com, however since the beginning of the court case he has ceased posting updates and refuses to talk to journalists.

The case has prompted a fierce debate on internet forums in both Cyprus and the UK, with many observers commenting that the proceedings need a “tidying up quickly“.

O’Dwyer’s lawyer Yiannos Georgiaides told the Cyprus Mail last night that: he had nothing to say until the case is over. O’Dwyer also refused to be drawn on the issue, but he is understood to be frustrated with the sluggish proceedings.

Copyright © Cyprus Mail 2009

Cyprus government in incestuous relationships

Editorial
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WITH his question to the British High Commissioner, ‘why have those property owners not taken the developers to court’ (over the missing title deeds issue); Interior Minister Sylikiotis reveals himself as Cyprus’ very own Marie Antionette.

She; when told that the people were starving for lack of bread supposedly asked, why don’t they eat cake?

The difference is that whilst Marie simply failed to understand the problems of ‘the people’, Minister Sylikiotis understands only too well what the problem is.

However, rather than address it, he cynically resorts to the old tactic of blaming the victims of the scam for their own predicament – a predicament that is entirely due to the failings of past and present Cyprus governments and one that is totally beyond the control of the victims.

Having already conceded that he and the government are prepared to simply sit on their hands over the issue and do nothing; he then insults the victims; the majority of whom are his fellow Cypriots by suggesting that they themselves should foot the bill by entering into legal proceedings against one of the most notoriously protected groups of people in the country.

The Cyprus courts are not known for bravely standing up against such people as recent cases have shown.

Never mind that the Cypriot legal system is abysmally slow, inefficient and horrendously expensive into the bargain, its record of finding against the developers – and more to the point enforcing its rulings on the guilty after such findings – is dismal in the extreme.

In Cyprus, developers can truly be regarded as a ‘protected species’, one that the Cyprus government is prepared to protect to the last; not least because of the incestuous financial relationships they together enjoy.

It is for these reasons that Minister Sylikiotis can, and does, metaphorically stick up two fingers to the title deeds victims.

It is now long past the time when the whole issue of the Cyprus government’s refusal to resolve the title deeds problem; one entirely of its own making, should be taken up by the European courts, who, it should be noted, should they choose to do so, have the power to make the Cyprus government weep.

Copyright © Cyprus Mail 2009

State plans to fix title deeds mess flawed

Editorial
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IT WAS suggested in a recent edition of the Sunday Mail that one way of solving the title deed fiasco was for the government to issue deeds to the lawful occupiers to raise €5bn with this money, in part then being used to write off the €4 billion of toxic debt held by developers.

Whilst I have no sympathy whatsoever for the developers who have got themselves and other innocent purchasers into this position, can it be explained why taxes payable to the government should be diverted to a small minority of people whose lavish life style has lead to this mess in the first place?

Only in Cyprus do we appear to reward failure and corruption. I for one feel most strongly about my money being spent shoring up a developer because they cannot replay a bank loan. If it is good enough for one section of the community, what about all the other citizens who are having problems at the bank?

There is also, rather naively, a belief that after being held so long to ransom that the homeowner will willing support their developer, rather than watch them ‘go-under’.  And what about the poor homeowner who now cannot afford to pay the tax because the amount, now due in euros has increased?

May I suggest that the toxic debt is a matter between the greedy bank and the grubby developer who got themselves into their own mess. The government should issue the title deeds and let the two parties involved sort it out by themselves. The problem is, of course, the Government is too closely involved with both parties and only foreign intervention will sort the matter out.

Copyright © Cyprus Mail 2009

Expats in Cyprus, tax advantages and domicile

Nigel Howarth
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IF YOU are retiring to Cyprus and have been told that one of the tax advantages of buying  property on the island is that you will not have to pay Inheritance Tax, it is essential that you check with HM Customs and Excise for advice on your domicile position. Note that:

  • If you are domiciled in Cyprus there is no UK Inheritance Tax to pay on your estate.
  • If you are British it is unlikely you will have changed domicile – in that case your worldwide estate (including property in Cyprus) will be subject to UK inheritance tax.

Please bear in mind that Domicile does not mean Resident. If you are originally British, or had long term connections in the UK it is very possible you are still UK domiciled.

HM Revenue & Customs booklet ‘HMRC6 Residents and non-residents – Liability to tax in the United Kingdom‘ provides guidance for those who need to consider their domicile for Capital Gains Tax purposes.

Domicile

FOR income tax and capital gains tax purposes, whether or not you are domiciled in the UK is relevant only if you have foreign income and/or gains during a tax year. If you do not have foreign income and/or gains then your domicile status has no bearing on your UK income tax or capital gains tax position and you do not need to consider it.

The guidance we provide here will help you, when your affairs are straightforward, reach a decision on your domicile status. If your affairs are more complex we direct you to where you can obtain further guidance and we also recommend that you speak to us or seek advice from a professional tax adviser.

The fact that you were born in the UK, have lived for most of your life or are now living permanently here is a good indication that you might be domiciled in the UK but it is a complicated, legal issue and you might want to seek professional advice if you are unsure about your domicile status.

If you do have foreign income and/or gains then your domicile might have a bearing on what UK tax you pay on those foreign income and/or gains. If you are resident but are not domiciled in the UK, although you will still have to pay UK tax on any income and/or gains which arise or accrue here, you might wish to claim the remittance basis of taxation for your foreign income and/or gains.

We are unlikely to challenge any person who says they have a UK domicile. But if you say that you have a non-UK domicile, then especially if you were born in the UK, we might want to enquire whether or not that is correct. By its very nature, this sort of enquiry aimed at establishing your domicile, will be an in-depth examination of your background, lifestyle and intentions over the course of your lifetime. Any enquiry of this sort will extend to areas of your life, and that of your family, that you might not normally think are relevant to your UK tax affairs. We will need to ask these questions and sometimes ask you to provide us with information as part of an enquiry into your domicile status.

What does domicile mean?

Domicile is a matter of general law; not a tax law. There are many things which affect your domicile. Some of the main points you should consider if you are claiming not to be domiciled in the UK are:

  • you cannot be without a domicile
  • you can only have one domicile at a time
  • you are normally domiciled in the country where you have your permanent home
  • your existing domicile will continue until you can acquire a new one
  • domicile is distinct from nationality or residence, although both can have an impact on your domicile
  • the fact that you register and vote as an overseas elector is not normally taken into account when deciding whether or not you are domiciled in the UK.

Any references we make to being ‘domiciled in the UK’ are references to being domiciled in any part of the UK.

What types of domicile are there?

There are three types of domicile relevant to Income Tax and Capital Gains Tax. These are:

  • domicile of origin
  • domicile of choice
  • domicile of dependence.

Domicile of Origin

You normally acquire a domicile of origin from your father when you are born (see also ‘domicile of dependence’). It need not be the country in which you were born – for example you might have been born in a country which was not the country in which your father was domiciled at the time of your birth. A domicile of origin may change as a result of adoption and is not easy to displace although this does occur. If you leave the country of your domicile of origin, you will continue to be domiciled there until you acquire a domicile of choice elsewhere.

The fact that you were born in the UK does not automatically mean that you are domiciled here. You might have been born in the UK to a non-UK domiciled father and then moved to another non-UK country. Regardless of the fact that you were born in the UK, your domicile of origin would be the same as your father – non-UK. If you return to the UK and are not planning to remain here permanently, then you will continue to be domiciled outside the UK.

If your parents were not married at the time of your birth, you would acquire your domicile of origin from your mother.

Example: domicile of origin

If you were born in the UK and your father was a non UK domiciled soldier of a foreign nation serving in the UK. Your domicile of origin would be the same as your father – non UK and in the place your father was domiciled.

but

If your non UK domiciled father dies when you are a child and you are adopted by a UK domiciled father. Your domicile of origin will change to a UK domicile as a result of your adoption. Your original domicile has been ‘displaced’.

Domicile of Choice

You have a legal capacity to acquire a new domicile at the age of 16. Broadly, to acquire a domicile of choice you must leave your current country of domicile and settle in another country. You need to provide strong evidence that you intend to live there permanently or indefinitely. The following factors will be relevant, though this list is not exhaustive:

  • your intentions
  • your permanent residence
  • your business interests
  • your social and family interests
  • your ownership of property
  • the form of any Will you have made.

Example: domicile of choice

If you were born in the UK and your father was a non UK domiciled person working in the UK while you were a child you would have the same non UK domicile as your father.

but

You were brought up, educated and start work in the UK. When you are 21 your father retires from his job and decides to return to his country of domicile. You have bought a home and married and you have made the UK your permanent home which you do not intend to leave. You will not be joining your father abroad for anything other than an occasional visit. By deciding to stay in the UK permanently or indefinitely you have established a domicile of choice in the UK.

Domicile of Dependence

Until you have the legal capacity to change it, your domicile will follow that of the person on whom you are legally dependent. If the domicile of that person changes, you will automatically acquire the same domicile, in place of your domicile of origin. Before 1974, married women automatically acquired their husband’s domicile. As a married woman, who married before 1974, you would retain your husband’s domicile until you legally acquire a new domicile. But, if you are a woman who married on or after 1 January 1974, your domicile is not necessarily the same as your husband’s. Your domicile will be decided in the same way as any other individual who is able to have an independent domicile.

An exception to this is the Double Taxation Agreement between the UK and the USA, which provides that a marriage before 1974 between a woman who is a US national and a man domiciled within the UK is deemed to have taken place on 1 January 1974.

Example: domicile of dependence

You are a woman with a domicile of origin outside the UK who married a man domiciled within the UK in January 1970. Upon marriage you became UK domiciled – your ‘domicile of dependence’ being the same as your husbands domicile.

As from 1 January 1974 you can acquire an independent domicile of choice, which could be different from your husbands domicile.

© Crown Copyright

Property prices and gross rental yields

Alan Lawton
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THE influential Global Property Guide has recently published its list of the most expensive real estate markets in 2009.

Perhaps not surprisingly, Monte Carlo is in the number 1 position, more than twice as expensive, at €34,142, as the runner up. Battling for the number 2 position are prime central Moscow and London. Prime central Moscow’s €14,964 per square metre price tag slightly outpaces core Prime London’s €14,895 per square metre, though it is fairer to say the two cities are neck-and-neck.

The Global Property Guide’s figures are based on a 120m2 apartment.

Closer to home in Cyprus:

  • Limassol is at number 55 with a price tag of €2,343/m2 and a gross rental yield of 3.45%.
  • Paphos is at number 71 with a price tag of €2,004/m2 and a gross rental yield of 2.83%.
  • Nicosia is at number 81 with a price tag of €1,619/m2 and a gross rental yield of 3.76%.
  • Larnaca is marginally less expensive at number 85 with a price tag of €1,560/m2 and a gross rental yield of 3.64%.

What does rental yield mean? Why is it important?

The gross annual rental income expressed as a percentage of today’s property purchase price. This is what a landlord can expect as return to his investment.

The rental yield is one useful yardstick of whether property is over-valued or under-valued:

20% – Very undervalued

15% – Very undervalued

12% – Undervalued

10% – Undervalued

8% – Borderline undervalued

7% – Fairly priced

6% – Fairly priced

5% – Borderline overvalued

4% – Overvalued

3% – Overvalued

2.5% – Very overvalued

2% – Very overvalued

The table below has been assembled from figures provided by Global Property Guide.

CountryCity/RegionAve Price (Euro/sq.m)Annual Yield (%age)
1MonacoMonte Carlo34,142n/a
2RussiaMoscow14,9644.61%
3UKLondon14,8954.12%
4JapanTokyo12,9154.86%
5Hong KongHong Kong11,5713.73%
6USANew York10,6914.37%
7FranceParis8,6994.26%
8SingaporeSingapore6,9613.97%
9ItalyRome6,5783.62%
10IndiaMumbai6,5754.02%
11IrelandDublin6,508n/a
12FinlandHelsinki6,0313.69%
13BermudaBermuda5,6415.05%
14GreeceAthens5,6392.71%
15UAEDubai5,1325.50%
16SpainBarcelona4,6813.75%
17MontenegroMontenegrin Littoral4,438n/a
18SwitzerlandGeneva4,4334.09%
19LuxembourgLuxembourg4,4244.28%
20British Virgin IslandsBritish Virgin Islands4,193n/a
21BarbadosSt. James4,1384.37%
22SpainMadrid4,0703.67%
23RussiaSt. Petersburg3,9668.15%
24AndorraAndorra3,8602.19%
25GermanyMunich3,7713.97%
26RomaniaBucharest3,7205.54%
27SlovakiaBratislava3,6514.28%
28AustraliaSydney3,5845.96%
29Turks & CaicosProvidenciales3,561n/a
30Netherlands AntillesSint Maarten3,508n/a
31NetherlandsAmsterdam3,3376.63%
32ItalyMilan3,3184.72%
33IsraelTel Aviv3,2885.13%
34Czech RepublicPrague3,2725.02%
35Saint Kitts & NevisNevis3,203n/a
36GermanyFrankfurt3,1624.60%
37US Virgin IslandsSaint Thomas3,103n/a
38PolandWarsaw3,0864.60%
39Puerto RicoSan Juan3,0795.32%
40Antigua & BarbudaAntigua3,068n/a
41BahamasNassau2,9268.37%
42CanadaToronto2,8756.48%
43TaiwanTaipei2,8472.38%
44DenmarkCopenhagen2,7384.61%
45SloveniaLjubljana2,7285.49%
46LatviaRiga2,6674.40%
47EstoniaTallinn2,6494.36%
48MaltaMalta2,6242.85%
49MartiniqueMartinique2,599n/a
50PolandKrakow2,5534.10%
51SwitzerlandZurich2,4855.00%
52Cayman IslandsGrand Cayman2,405n/a
53Saint LuciaSaint Lucia2,353n/a
54BelgiumBrussels2,3444.90%
55CyprusLimassol2,3433.45%
56MexicoBaja California Sur2,316n/a
57CroatiaZagreb2,3075.07%
58CanadaMontreal2,3046.77%
59IndiaNew Delhi2,2764.05%
60Saint Kitts & NevisSaint Kitts2,273n/a
61Trinidad & TobagoTrinidad2,2188.14%
62GermanyBerlin2,1744.80%
63GreeceCrete2,1393.57%
64PortugalAlgarve2,099n/a
65NetherlandsThe Hague2,0978.97%
66ChinaShanghai2,0944.36%
67LithuaniaVilnius2,0863.70%
68PortugalLisbon2,075n/a
69BulgariaSofia2,0654.62%
70HungaryBudapest2,0586.84%
71CyprusPaphos2,0042.83%
72US Virgin IslandsSaint Croix1,930n/a
73CambodiaPhnom Penh1,7964.88%
74Curacao and BonaireCuracao and Bonaire1,765n/a
75GuadeloupeGuadeloupe1,7557.31%
76BrazilRio de Janeiro1,7526.48%
77ChinaBeijing1,6955.14%
78South AfricaCape Town1,6906.32%
79New ZealandAuckland1,6847.46%
80ArgentinaBuenos Aires1,6458.85%
81CyprusNicosia1,6193.76%
82ThailandBangkok1,6067.97%
83LebanonBeirut1,6005.13%
84BelizeBelize1,593n/a
85CyprusLarnaca1,5603.64%
86MoroccoMarrakech1,4666.56%
87PhilippinesManila1,37310.99%
88Dom. Rep.Puerto Plata1,343n/a
89BrazilSao Paolo1,3356.56%
90UruguayMontevideo1,2587.56%
91VietnamHanoi1,2557.13%
92PanamaPanama City1,2499.98%
93JamaicaKingston1,1878.80%
94Costa RicaSan Jose1,1507.06%
95ChileViña Del Mar1,1383.74%
96ChinaGuangzhou1,0955.21%
97ArubaAruba1,035n/a
98ColombiaBogota1,0069.19%
99MalaysiaKuala Lumpur9679.22%
100MoldovaChisinau94414.17%
101MacedoniaSkopje93510.11%
102TurkeyIstanbul9266.47%
103ChileSantiago8768.87%
104PeruLima82810.09%
105JordanAmman8259.73%
106IndonesiaJakarta79111.27%
107NicaraguaManagua7759.12%
108ChinaChengdu7174.28%
109EcuadorQuito5888.77%
110ChileConcepción4809.04%
111IndiaBangalore4714.91%
112EgyptCairo41212.00%

Cyprus slips to seventh place

Nigel Howarth
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ACCORDING to PropertyAbroad’s monthly look at the top 10 overseas property choices of those searching for property on the site in June, America has climbed into the number 1 slot, relegating Spain to second position.

France and Greece have also swapped places, with France climbing one place to take 3rd, knocking Greece into 4th.

Cyprus slipped back 2 places into 7th place, moving Turkey and Italy both up one place to take 5th and 6th respectively from 6th and 7th behind Cyprus last month.

Portugal remained the 8th most popular in June (the same as in May) but 9th and 10th changed significantly. Egypt and Canada, which only entered the top 10 in May, in 9th and 10th place, have been replaced by Bulgaria and India.

The full results of the top 10 most popular in June were as follows:

  1. America
  2. Spain
  3. France
  4. Greece
  5. Turkey
  6. Italy
  7. Cyprus
  8. Portugal
  9. Bulgaria
  10. India

Compared to May:

  1. Spain
  2. America
  3. Greece
  4. France
  5. Cyprus
  6. Turkey
  7. Italy
  8. Portugal
  9. Egypt
  10. Canada
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