Who can Buy a Property In Cyprus?
EU citizens may purchase any number of properties or land of any size in Cyprus
Non Europeans are allowed to acquire one property only and are subject to certain conditions, it is advisable to check with the appropriate authority or through your legal representative to confirm current requirements.
Engaging a Legal Representative
It is advisable to engage an independent lawyer to act on your behalf when purchasing a property. Fees do vary, so check with your lawyer on the fee they will charge and the service they will provide for you. Part of their work should be to search for any encumbrances on the property, check that the property has all necessary permissions and are Title Deeds available to you.
Exchanging your Money
Many purchasers need to exchange money from their own currency to Euros. Rates, bank charges, commissions can make transfers costly and it is strongly advisable to check this out before organising your currency exchange. The services of a foreign exchange company can save you a substantial amount of money, their rates will be competitive and any fees or commissions minimal. On sums used to purchase property this could amount to considerable savings and definitely worth checking out. Take a look at our currency page for more information.
So you’ve found your dream home, what next?
The first step is to pay a reservation fee this takes the property off the market for a specific period of time to allow your lawyer to begin his searches. The reservation fee is normally nonrefundable and is a figure agreed at the time of reservation.
With the reservation fee paid, the Contract of Sale is drafted with details of the property being purchased, the price and the payment terms. Once signed by all parties your lawyer should take it to Land Registry to record your interest and for stamping. Your lawyer can advise you of the current stamp duty payable.
When purchasing a property off plan or under construction, you will be asked to make a further deposit. The balance will be scheduled in accordance with construction in stage payments and recorded on the contract. A useful point is to ensure your contract states each stage for payment and not just a date for the next payment to be made as you may find yourself paying before a stage has been completed should the developer experience delays. It is also advisable to check that each stage has been completed before making the stage payment. Title Deeds are not always immediately available on new constructions and there may be some delay in issue. Your lawyer can help protect you from any problems in a number of ways so be sure to discuss this with him prior to agreeing any purchase.
If you are purchasing a resale property depending on the anticipated completion date, you may be required to pay a further deposit whilst the proceedings are underway and the remaining balance on completion of the sale at a date agreed by both parties. At this point you become the new owner and the title deeds will be transferred to your name.
Value Added Tax – VAT
VAT is payable on the selling price of new property where planning permission has been submitted from 1st May 2004, newly constructed properties with early planning permissions are exempt from VAT.
VAT at the present time is 18%, however you should check before entering into any agreement on the current rate. In certain circumstances it is possible to reclaim a large portion of the VAT and again it is important to check at the time of purchase your eligibility for this. Your lawyer will be able to help you with this.
Transferring Title Deeds
At the time of transferring the title deeds you will be required to pay the Land/Property Transfer Fee. The fee is calculated on a sliding scale and is based on the market value of the property. Should the property be registered in more than one name the market value will be split between the parties and each person will be valuated separately. The fees below are to be used only as a guide line and current rates should always be confirmed with the appropriate authorities or your lawyer
Value of Property (€ Euros)
up to 85,430 3%
between 85,431 - 170,860 5%
over 170,861 8%
e.g. A property purchased at €200,000 will incur transfer tax as follow:-
€85,430 will be charged at 3%
€85,430 will be charged at 5%
€29,140 will be charged at 8%
As a property owner in Cyprus it is advisable to make a Cyprus Will, your lawyer can explain the procedure and also explain why it is important to understand the consequences of not having a will here to protect your property and your heirs.
There is no inheritance tax in Cyprus