Whatever your motivations for purchasing a house, it is likely that this is your first time purchasing a property in Cyprus. We’ve put up this guide to assist you learn a little more about the buying procedure in Cyprus.
This guide aims to provide some basic information on buying in Cyprus and attempts to address the majority of the frequently asked questions. Although we hope you find it informative, please keep in mind that it does not cover all legal concerns and is certainly not a step-by-step DIY guide to buying Cypriot property.
We’ve also put out a helpful Checklist for Buying Property in Cyprus.
While we hope that this information has helped to simplify the process of purchasing Cypriot real estate, you should still seek expert advice before proceeding — After all, we do this every day and have for many years, so we are familiar with all the techniques and hazards that you may encounter.
We also know how to solve problems and how Cypriot and UK laws interact, so we can assist you meet all of the severe criteria of both nations’ laws.
Please contact our friendly, competent Cypriot property lawyers in the UK for specialized assistance on buying Cypriot property customized to your needs.
Buying a home in Cyprus: Frequently Asked Questions
Is Cyprus’ legal system similar to that of the United Kingdom?
Because the Cypriot legal system is based on British law, there are many parallels between the two systems. While there are distinctions, there is still a connection between them when purchasing a home in Cyprus. In Cyprus, for example, unlike the United Kingdom, when a contract to acquire a property is signed, it is placed at the Land Registry.
Is it necessary for me to hire a lawyer to assist me in purchasing a home in Cyprus?
Surprisingly, this is the most frequently asked question. No, you don’t need one, just as you don’t need one when buying a house in the UK. However, if you were buying in the UK, you would always require a lawyer, so what makes buying in another nation where you are likely unfamiliar with the process so different?
Please see our advice on how to choose a lawyer when buying property overseas for more details.
I’ve heard that purchasing property in Cyprus can be difficult. Is that correct?
Buying in Cyprus can certainly pose challenges, just as it might in any country, including the United Kingdom. The majority of the potential issues you’ve read about can be avoided by exercising caution and retaining the services of an independent lawyer to assist you with the transaction.
When we visit customers who are having problems with their property, they almost often tell us that they did not hire a lawyer or that they hired the lawyer recommended by the seller or estate agent.
Is it more expensive to buy a home in Cyprus than in the United Kingdom?
Yes, the entire costs, including the purchase price, are more than in the United Kingdom. As a result, it’s critical to include them in your budget from the start. Fortunately, property prices are currently at an all-time low, which not only lowers some of these fees but also lowers the buying price.
Please see our guide on the costs of buying property in Cyprus for more information.
In Cyprus, how do title deeds work?
The property’s buyer will get title deeds in accordance with the provisions of the contract of sale. This usually occurs after the customer has paid the entire purchase price.
After submitting an application to the Land Registry and paying all of the required transfer costs, the seller’s title deeds are transferred to the buyer.
However, it is vital to point out the following:
- For a new property, title deeds can take up to 5 years to be issued.
- The owners are protected by depositing the agreement at the Land Registry, even if the property does not have title deeds.
- Even in the lack of title deeds, resale is possible.
Is it possible to receive a mortgage to buy a home in Cyprus?
A mortgage can be used in two ways to finance your purchase in Cyprus.
The first is to use the equity in your UK assets to purchase the Cyprus house. The second option is to take out a mortgage on the Cyprus home. Each has benefits and drawbacks, but making the wrong decision can be costly, so seek help.
Simon Conn – overseas mortgage broker – is our preferred international mortgage broker, and he will be able to assist you with this element of your purchase in Cyprus.
Getting a mortgage in Cyprus is more difficult now than it was previously. Taking over an existing mortgage on a property in Cyprus may be an option if you are purchasing a home in Cyprus that has already been mortgaged by the previous owner. This is frequently perceived as a straightforward method of acquiring a mortgage, but you should be aware that while the mortgage may have been the best option for the seller, it may not have been the greatest option for you.
However it is not required, it is typical for mortgage institutions to register the mortgage with the Land Registry, although this is not always the case.
To learn more about mortgages on international properties, please see our guide to mortgages on foreign properties.
Is it necessary to have a survey done when purchasing a home in Cyprus?
If you are considering purchasing a home anywhere in the world, we always recommend that you have a survey completed. The mortgage company’s valuation will only consider whether the property is worth the amount you have agreed upon when you apply for a mortgage.
There are several exceptions to this rule, though. Any problems in the property that do not influence its value will not generally be listed on the report. A survey will evaluate the overall condition of all permanent structures and will identify any significant issues that could have an impact on the property’s value. Depending on the results of the survey, this may also provide recommendations for future maintenance.
A property survey should lessen the likelihood of a buyer discovering any unpleasant surprises about the state of the property after they have purchased the property. Depending on whether there are any flaws, the survey may assist the buyer in negotiating the price or may require that certain repairs be made before the property can be purchased.
The survey may also disclose that specific improvements have been made to the property or that certain rights are required for the land, which we can examine before the property is purchased, among other things.
Is it necessary to utilize a Power of Attorney to purchase property in Cyprus?
Essentially, a Power of Attorney is a legal document that grants someone the authority to act on your behalf.
If the sale agreements are not being signed in the United Kingdom, it is common for clients to issue a Power of Attorney to someone else to sign the purchase contracts on their behalf if they are not in the country.
There are various advantages to doing so:
You will save both time and money by not having to travel to Cyprus to complete the necessary documentation.
In most cases, signing numerous contracts is not particularly thrilling, and most individuals would rather spend their vacation time relaxing and enjoying their property rather than signing pieces of paper.
It is usually less expensive than traveling to Cyprus to sign the documents.
You should only provide a Power of Attorney to someone you know and trust since it authorizes that person to act lawfully on your behalf in certain situations.
Powers of Attorney in Cyprus have far broader capacities than those we are accustomed to in the United Kingdom, and they frequently contain highly vague phrases that are included “just in case.” The Powers of Attorney are kept as short as feasible while yet enabling the person appointed the freedom to carry out the tasks that have been delegated to them by the client.
If you require additional information, please see our guide on how to use Powers of Attorney.
Who should be the legal owner of the property?
This is, without a doubt, the most crucial decision you will ever make. Getting this properly can save you thousands of dollars in costs and taxes in the long run. Making a mistake here can be a costly mistake in the long run.
The manner in which you would purchase a house in your home country is not necessarily the ideal manner in which to purchase in Cyprus, so do not assume that you can apply what you have learned here to your purchase in Cyprus.
There are numerous possibilities available, ranging from individual ownership to corporate ownership, but there is no “one size fits all” approach that is suitable for everyone.
Your life conditions and priorities are distinct from those of another person’s life. We are able to take a look at your situation and your preferences and provide recommendations on who should be the owner of the property based on that information. It is possible that the solution will not be immediately apparent.
The optimum form of ownership would depend on a number of factors, including the amount of tax payable in both Cyprus and the United Kingdom, as well as a variety of other considerations, such as your plans for the property going forward.
For additional details, please see our guide to foreign corporate ownership of real estate for more information.
When you purchase a home in Cyprus, who do you need to notify of your decision?
When purchasing a home in Cyprus, you will need to make contact with a number of organizations, businesses, and government agencies, including the following:
The Residents’ Association is a non-profit organization.
Providers of drinking water and electricity
The Land Registry is a government agency that maintains records of land ownership.
Town Hall is a place where people come to talk about their lives.
More information can be found in our article on who to notify when purchasing a property in Cyprus.
What should I do now that I’ve inherited a house in Cyprus?
Many persons who inherit a property in a foreign country are unaware of the legal conditions that must be met in order for the property to be kept or sold in their country. We can advise you on your alternatives and ensure that all of the relevant concerns are taken care of, allowing you to make the most of your inheritance to the greatest extent possible.
For further information, please check our guide on acquiring Cypriot property by inheritance.
Does it matter if I own property in Cyprus if I don’t have a Cypriot will?
Due to the fact that Cyprus has different inheritance rules than the United Kingdom, it is normally recommended that you create a Cypriot Will in addition to your UK Will. While it is possible to simply leave your Cypriot property to your chosen heirs in your UK Would, this will typically result in a considerable rise in the inheritance costs for your beneficiaries and does not make financial sense in the majority of cases.
Check out our guide to drafting a Cypriot will to learn more about how to do so.
What is included in our services for purchasing a home in Cyprus is detailed below.
We always work on a fixed fee basis, which allows you to plan your finances properly from the beginning of your purchasing process. If your purchase results in significant or unanticipated difficulties that need to be fixed and necessitate further labor, you may be subject to additional charges as a result. We would notify you in advance of incurring this expense. However, because of our extensive knowledge of Cypriot real estate, we are able to foresee the majority of concerns, allowing us to deal with many unanticipated situations without charging any additional fees.
Our services include the following:
- Advice on the legal implications of the terms of your acquisition offer
- Searches are being conducted at the Town Hall.
- Searches at the Land Registry are conducted.
- Obtaining a certificate from the Association of Property Owners (if appropriate)
- Inquiring about the legal status of the property and the seller’s authority to sell it
- If the situation calls for it examining the vendor’s assurance to make sure it is valid
- doing an analysis of our findings and providing you with advice on the purchase
- Getting the title deed signed is a complicated process.
- Organizing the payment of the applicable taxes
- Obtaining registration of the property with the Land Registry on your behalf.
- Throughout the transaction, you will receive general guidance and advice.
Why should you choose Judicare to purchase a home in Cyprus?
Lawyers from Cyprus
A legal team from Cyprus with a great deal of experience.
We are solicitors who are governed by the laws of the United Kingdom.
We are a Solicitors’ firm situated in the United Kingdom that is regulated by the Solicitors Regulation Authority and that specializes in international legal matters.
We are familiar with both UK and Cypriot legislation.
Because we are familiar with both sets of laws, we are aware of the challenges that can arise when two sets of laws collide. This is especially significant when it comes to concerns such as ownership, taxation, and inheritance.
We are members of the AIPP (Association of Industrial and Professional Printers).
The Association of International Property Professionals was established in order to raise the level of professionalism in a market that is mainly uncontrolled outside of the United States.
Our Cypriot staff has a wealth of knowledge and experience in dealing with a wide range of legal matters pertaining to Cyprus.
We are fluent in your language.
You require an attorney who is fluent in your native language. More significantly, you require someone who is capable of explaining and debating often complex matters in a manner that you can comprehend.
We are self-sufficient. We are not permitted to act for both the buyer and the seller at the same time under any circumstances. We have no affiliations with any development companies, builders, or real estate agents in the area.
Do you require assistance in purchasing a home in Cyprus?
Our team of property attorneys based in the United Kingdom has extensive expertise assisting clients with the purchase and sale of property in Cyprus, as well as a wide range of associated matters such as Wills and inheritance planning and advising.