Do you want to purchase a property in Cyprus and don’t know where to start? You can use the article below as a guide and rely on our local lawyers for support throughout the procedure.
| Quick Facts | |
|---|---|
| Specific legislation applicable (YES/NO) | The Law on Property (Tenure, Registration and Valuation) is one of the most important real estate laws in Cyprus (other laws also apply) |
| Possibility to acquire Cypriot properties by foreigners (YES/NO)
| YES, there are no restrictions for foreign citizens seeking to buy properties in Cyprus |
| Types of properties that can be purchased in Cyprus
| Residential (apartments, houses) and commerical buildings |
| Real estate due diligence required (YES/NO) | Real estate due diligence is not required, however it is recommended no matter the type of property |
| Documents to draft for property acquisition | The sale-purchase agreement (pre-sale agreement can also be signed), information about the seller and the buyer, power of attorney if a proxy is appointed, other documents, depending on the type of property |
| Financing options availability (YES/NO) | YES, loans and mortgages can be obtained with local banks to purchase a property in Cyprus |
| Special property acquisition programs for foreign citizens (YES/NO) | YES, under the new Residency by Investment program |
| Timeframe to acquire a property in Cyprus (approx.) | The purchase procedure can span over 1 to 3 months |
| Taxes to consider upon a property purchase | The stamp duty, the transfer tax with the Land Registry, the VAT (other levies such as real estate agent fee and power of attorney issuance should also be considered where applicable) |
| Land Registry registration requirement (YES/NO) | YES, the new owner is required to register the property with the Land Register in order to obtain the deed of ownership |
| Best cities to buy properties in Cyprus | Paphos, Larnaca, Limassol, Nicosia, etc. |
| Residency requirements for foreign citizens buying real estate | No, foregin citizens are not required to be residents of Cyprus in order to acquire properties here
|
| Possibility to appoint a Cypriot representative during the transaction (YES/NO) | YES, our lawyers in Cyprus can be local representatives during the transaction |
| Property tax rates in Cyprus | Property taxes have been abolished in Cyprus, however, municipal levies for water and electricity apply |
| Support in buying a property in Cyprus (YES/NO) | YES, we offer real estate due diligence and acquisition support |
| Possibility to purchase properties for companies (YES/NO) | Yes, companies can also acquire real estate in Cyprus. |
Approval for foreigners to acquire real estate (if any) | Yes, with the Council of Ministers |
Property reservation requirement (YES/NO) | No, it is not mandatory to reserve a property, but it is recommended. |
| Steps to acquire real estate | – selecting the property; – completing the due diligence procedure; – negotiating the terms of the contract; – acquisition. |
| Advance payment to secure property (if any) | Yes, 5% to 10% can be deposited as an advance payment. |
| Timeframe to register the property after purchase | 60 days |
| Costs associated with buying a property in Cyprus | – VAT; – transfer fees; – stamp duties; – legal fees. |
| Special VAT rate for real estate transactions (if any) | Yes, 5% for residential homes, 19% for other properties. |
| Legal representation required (YES/NO) | While it is not mandatory to appoint a legal representative, it is recommended to hire a lawyer. |
| Capital gains tax rate for the disposal of property | 20% |
| Possibility to rent the property after purchase (YES/NO) | Yes, there are no restrictions applicable after buying a Cypriot property. |
| Currency in which the transaction can be completed | Euro, however, USD can also be used as currency. |
| Special requirements for foreign investors (if any) | No, there are no special requirements for foreign investors in order to buy properties in Cyprus. |
| Availability of property purchase for EU citizens (YES/NO) | Yes, EU citizens can acquire real estate in Cyprus. |
| Requirement to maintain purchased property for foreigners (YES/NO) | No, the new owner can dispose of the property whenever he/she wants. |
Please watch our video about buying or selling a property in Cyprus:
Table of Contents
Can I buy a property in Cyprus if I am a foreigner?
Yes, you can. However, there are two scenarios that apply:
- if you are a non-EU/EEA citizen, you need to obtain permission first;
- there is no permission needed if you are an EU/EEA citizen.
What types of properties can I purchase in Cyprus as a non-EU/EEA citizen?
You can acquire:
- land of up to 4,000 square meters, you can use for building your own house;
- up to 2 units (house, apartment) of a maximum of 200 square meters;
- one house/apartment and a commercial space of a maximum of 200 square meters;
- one house/apartment and an office space of a maximum of 250 square meters.
NOTE: Foreigners can buy such properties on their own or with their spouses.
What types of properties are commonly purchased in Cyprus?
- Townhouses: they are a great option and an alternative for villas, offering good living spaces and less to maintain;
- Single story bungalows: they are a popular option for retired expatriates who choose to move to Cyprus;
- Stone village houses and farmhouses: these are found in the more rural center of the country;
- Apartments: most developments provide them in different sizes, being purpose-built for the holiday market.
What are the steps to buy a property in Cyprus?
- Property search;
- Real estate due diligence;
- Permission acquisition (where applicable);
- Pre-sale contract signing and advance payment;
- Completion of the transaction;
- Registration of the new owner with the Land Registry.
What are the required documents to purchase a Cypriot property?
The following:
- a survey of the property/land plot;
- a copy of the property title;
- the planning consent or partitioning permit, when acquiring 2 properties;
- a copy of the sale-purchase agreement;
- the architectural plan of the house or apartment, if this is the type of property purchased;
- proof of having the money to complete the acquisition (a bank statement);
- passport of the buyer(s);
- marriage certificate, if the property is bought as a couple;
- copy of the residence permit/work visa, if applicable.
These documents must be presented to a Cypriot public notary.
Here is also an infographic on this subject:
How long does it take to buy a property in Cyprus?
You can expect the procedure to be completed in about 3 months.
What real estate legal services do you offer?
Our team of real estate lawyers in Cyprus can offer the following services:
- Contract support for buying or selling real estate in Cyprus/Larnaca;
- Real estate due diligence in Cyprus before buying a property;
- Management of flats/houses/villas, to rent out, collect the rents, pay the relevant tax, to deliver the flat and make a list of all assets in the flat and to take delivery of the flat when tenants leave;
- Registering the Contract of sale at the District land Office to protect the interest of the client;
- To resell or assign a flat or house before it is delivered to the client and take care of all procedures, taxes, payment of the price, registering the contract of assignment at the District Land Office.
If you want to buy a property in Cyprus and need legal assistance, you can rely on our attorneys. You can also watch our video on this subject:
Our real estate lawyers in Cyprus can help you with the due diligence process when buying a property. You can also contact us for details about obtaining Cypriot residency.