Foreigners were allowed to buy real estate property in Cyprus until 2004, when it became a member of the European Union. These limits largely applied to the size of property plots that foreign investors were allowed to acquire. However, as the government has become more aware of the excellent investment prospects available in the Cypriot real estate market, it has begun to relax these prohibitions.
Due diligence on real estate in Cyprus
To ensure that the property purchase process is not slowed down by legal concerns, the buyer should hire a law firm to perform real estate due diligence. Our Cyprus law office may check for encumbrances on the property, such as mortgages or other financial obligations such as utility bills.
The lawyer can also do a real estate validation with the Cypriot Land Registry, which might provide useful information regarding the property title. The buyer should also check the seller’s reputation and see if any leasing contracts or titles in the name of third parties have been completed.
The procedure for buying a home in Cyprus.
After locating the ideal Cypriot property, the foreign buyer must submit an application to the Council of Ministers for the purchase of the property. This restriction does not apply to local buyers. The buyer must next pay a reservation fee, which varies between 1000 and 5000 euros depending on the property’s worth, and sign a reservation document.
The terms and circumstances of the sale will be spelled out in the contract, and another 10% of the property’s value must be paid within two or three weeks. The purchase-sale contract is then drawn up and signed by both the seller and the buyer, and it must be filed with the Cyprus Land Registry within 60 days.
In order to get the new property title from the Land Register in the country, the buyer will be required to produce a bank reference as well as a final completion certificate from the local authorities.
The cost of purchasing a home in Cyprus
When purchasing real estate in Cyprus, the buyer must additionally consider the purchase’s additional fees. The stamp duty, which fluctuates between 0.15 and 0.2 percent depending on the property’s value, and the transfer fee, which varies between 3.5 percent and 8% based on the property’s value, are two among them. The 19 percent VAT rate applies to new constructions with a Town Planning Permit.
Cyprus has a variety of property types
Unlike other countries, Cypriot buildings come in a variety of styles, which makes the real estate market such an appealing investment target for foreign investors.
Cyprus properties include:
• Townhouses: an excellent option and alternative to villas, townhouses offer good living spaces and require less maintenance. A substantial patio and a roof top area are usually included in the exterior spaces. These townhomes are frequently linked by a shared pool.
• Single-story bungalows are a popular choice among elderly expats looking to relocate to Cyprus. • Stone village houses and farmhouses: these are found in the more rural core of the country, and they often require rehabilitation. As you may assume, habitable residences that have already been repaired or only require minor modification are more expensive.
• Apartments: most projects offer a variety of sizes, as they are designed specifically for the holiday market. They can be purchased in conjunction with shared amenities like as swimming pools and gardens, which are subject to shared maintenance charges. On the negative, these types of homes in Cyprus offer pre-built communities.
• Other types of properties: our Cyprus attorneys can provide more information on these properties.
Our Cyprus experts can assist you with the due diligence procedure when purchasing a home. You can also get in touch with us for more information about gaining Cypriot residency.