Purchase a Property in Cyprus

Purchase a Property in Cyprus

Updated on Tuesday 19th December 2017

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Until 2004 when Cyprus became an European Union member state, restrictions on real estate property purchases were enabled for foreigners. These restrictions mostly referred to the size of the land plot allowed to be owned by foreign investors. However, realizing the great investment opportunities the Cypriot real estate market provides, the government has started to remove these restrictions.

Real estate due diligence in Cyprus

In order to make sure the purchase process of the property will not be delayed by any legal issues, the buyer is advised to appeal to a law firm for real estate due diligence. Our law firm in Cyprus can verify the property for encumbrances such as mortgages or any other financial debts such as utility bills.

The lawyers can also perform a verification of the real estate with the Cypriot Land Registry which can provide valuable information about the property title. The buyer is also advised to verify the reputation of the seller and if any lease contracts or titles in favor of third parties have been concluded.

The procedure to purchase a property in Cyprus

Once the foreign buyer has found the right Cypriot property he or she must file an application with the Council of Ministers for the acquisition of the real estate. This measure does not apply for resident buyers. Then the buyer must pay a reservation fee that ranges between 1000 and 5000 euros depending on the value of the property and a reservation contract will be signed.

The contract will contain the terms and conditions of the sale and another 10% of the property’s value must be paid within two or three weeks. After this time, the purchase-sale contract is drawn up and signed by both seller and buyer and it must be submitted with the Land Registry in Cyprus within 60 days.

The buyer will be required to present a bank reference and a final completion certificate from the local authorities in order to receive the new property title from the Land Register in the country.

Property purchase costs in Cyprus

When acquiring real estate in Cyprus, the buyer must also consider the additional costs of the purchase. These include a stamp duty which varies between 0.15 and 0.2% depending on the value of the property and the transfer fee which ranges between at 3.5% and 8% depending on the property’s value. New buildings that have a Town Planning Permit are charged with the 19% VAT rate.

Types of properties in Cyprus

The Cypriot properties have a wide range of styles, unlike other countries, which make the real estate sector such an attractive investment target for foreign investors.
Properties in Cyprus can be:
Townhouses: they are a great option and an alternative for villas, offering good living spaces and less lend to maintain. The exterior spaces generally include a decent terrace and a roof top area. Often, these townhouses come together with a communal pool;
Single story bungalows: they are a popular option for retired expatriates who choose to move to Cyprus. They usually are bought with a private pool;
Stone village houses and farmhouses: these are found in the more rural center of the country, and many times they require a renovation. Habitable dwellings which have already been refurbished or require minimal renovation are a bit more expensive, as you might expect;
Apartments: most developments provide them in different sizes, being purpose-built for the holiday market. They can be bought together with communal facilities such as swimming pools and gardens which have shared maintenance costs. On the downside, this type of properties in Cyprus provide ready-made communities;
Other types of properties: our attorneys in Cyprus can provide more details on these properties in Cyprus.

Our lawyers Cyprus can help you with the due diligence process when buying a property. You can also contact us for details about obtaining Cypriot residency.