Citizens of other countries can buy property in Cyprus, but this can only be a single property with an area of no more than 4014 sq.m.
Stages of purchasing property in Cyprus
The process of purchasing property in Cyprus is as follows:
- the investor opens an account in a Cypriot bank;
- registration of a permit for the acquisition of real estate, without which foreigners who are not European citizens cannot purchase real estate. At the same time, you should apply for a reduced VAT rate if you are purchasing a new home that will serve as your main residence;
- the selected property, checked by a lawyer for the absence of encumbrances, is reserved by paying a deposit of €5,000 – €10,000; it cannot be returned if the buyer changes his mind;
- within 30 days from the date of payment of the deposit, a purchase and sale agreement is concluded and a deposit of 30% of the cost of the property is paid. A notary must be present when concluding an agreement. At this stage, you can apply for a residence permit or citizenship;
- the agreement is approved by the Council of Ministers of Cyprus; stamp duty is paid;
- the agreement is registered with the Land Registry Department in the personal presence of the parties or their official representatives within a thirty-day period after the conclusion of the agreement and a deposit of at least 30% of the price of the property. When the contract is registered, the buyer pays the remaining amount;
- registration of title to real estate.
What you need to know about buying property in Cyprus
To confirm ownership of real estate, the buyer must have in his hands a title of owner (Title Deeds), issued in his name – an official document containing all the information about the object and its owner. The preparation of this document can take several years, and sometimes home buyers face some problems in this area.
The fact is that the purchase and sale transaction will be considered carried out within the framework of the law, even if the new owner is not issued a title, and ownership is confirmed only by a record in the Land Department. The difficulty is that, according to the law, in this case you are the owner of the property even without having a title in hand, but when you try to dispose of such property (sell it, take out a mortgage on it, apply for permission for redevelopment) problems await you.
Often the buyer is assured that the title will be issued to him some time after the transaction is concluded, but its issuance may take years or even decades. Therefore, experts categorically do not recommend dealing with housing without a title.
JustReal specialists will help you not only in selecting real estate in Cyprus, but also in correctly completing all the necessary documents that will help you avoid any risks and problems. To receive advice on purchasing real estate in Cyprus, leave a request on the website.
What does buying property in Cyprus give?
So, what does buying property in Cyprus give to a foreign buyer? Among the main advantages it is worth highlighting:
- the possibility of obtaining a residence permit by the owner of real estate. We wrote about this in detail in the article “Residence permit in Cyprus when purchasing real estate.”
- the possibility of obtaining European citizenship with large investments in residential and commercial real estate in Cyprus. You can learn more about the scheme for obtaining a Cyprus passport under the investment program in our article “Cypriot citizenship when purchasing real estate”.
- optimization of business taxation for those who plan to conduct business activities in the republic. Cyprus is often compared to an offshore zone due to its favorable tax system and the possibility of reducing the tax burden.
In the article “Where is the best place to buy property in Cyprus” we talked about other advantages of buying property in Cyprus. This, of course, is the mild Mediterranean climate, which is the main motive for moving and temporary holidays in the country, and the European level of education and medicine, as well as the tolerance of local residents.