Can we help you with your search for property in Cyprus?
PURCHASING YOUR OVERSEAS PROPERTY IN CYPRUS
ACQUISITION OF IMMOVABLE PROPERTY IN CYPRUS BY FOREIGNERS
Cyprus is a popular destination for purchasing of holiday homes, investment properties and also retirement homes, especially by the British people. This popularity may be attributed to several factors, such as the low cost of living, the high standard of living, the similarity of the Cypriot legal system to the English legal system, the hospitality of the local population, the attractive climate and also the sense of security.
FOREIGNERS: NON EU CITIZENS
There are restrictions on the acquisition of property in Cyprus by non-EU citizens. Non-EU purchasers need permission from the Council of Ministers to acquire one of the following
*APARTMENTS IN CYPRUS
*HOUSES IN CYPRUS
*BUILDING PLOTS OR LAND IN CYPRUS up to approximately three donums (4,012 square meters)
In certain cases, it is possible that the Council of Ministers will grant approval for the acquisition by a foreigner of a larger area of land, if the land is to be used for tourist development (e.g. Hotel or Hotel Complex), especially if the intended project is in an area where the Government wishes to promote tourism. A similar stand is taken in certain industrial sectors
The letter of approval or refusal from the Council of Ministers may take up to six months or even longer. However, there is no restriction in taking possession of the property in the meantime.
The permit for the acquisition of immovable property by a foreigner when it relates to a private individual purchasing a property, is granted with the restriction that the house will be used only for his own residence and the building plot or land does not exceed 4,012 square meters.
Other restrictions will be imposed depending on what kind of property the application has been made for.
FOREIGNERS: EU CITIZENS
From May 1st 2004 Cyprus has been a full member of the European Union.
Our accession to the EU has made the procedure for purchasing property in Cyprus much easier for citizens of EU Member States.
At the moment certain restrictions have remained for EU Citizens as we are going through a "grace period" given to Cyprus from the EU in order to harmonise our legislation with that of the European Community.
All restrictions on the acquisition of property in Cyprus by EU Citizens will very soon be abolished. The permission of the Council of Ministers should also very soon be abolished for EU Citizens.
At present, the Council of Ministers permission is NOT required by EU Citizens purchasing land (no restriction on size).
EU Citizens purchasing property i.e. house, apartment etc.. DO require the Council of Ministers permission when they are NOT residents in Cyprus and they have the restriction of up to 4012 square metres of land.
EU Citizens who are residents in Cyprus and are purchasing property in Cyprus i.e. houses, apartments etc.. DO NOT require the Council of Ministers permission and they do not have any restrictions as to how much land they can acquire.
PROCEDURE
Once you have selected a property, you will need to visit a lawyer who will undertake to do the relevant searches, gather all the relevant documentation, drafting of the contract.
RESERVATION FEE: It is common market practice in Cyprus to pay a reservation deposit towards a property you intend to purchase. This amount is normally between two thousand and three thousand five hundred Euros but will normally depend on the kind of property under purchase. This reservation deposit is counted towards the purchase price but is normally non-refundable should you decide that you no longer want to proceed for your own reasons. The reservation deposit should be refunded to your if the reasons for which the transaction was cancelled were due to the Vendors. The reservation deposit "reserves" the property (takes the property off the market) for a period of normally 3-4 weeks (or as otherwise agreed with the Vendor).
SIGNING OF CONTRACTS: Contracts are signed on the payment of 20 - 30% of the purchase price to the Vendors. The reservation deposit allows you the 3 week time period in order to arrange finances in your own country for the signing of the contracts.
STAMP DUTY: When contracts have been signed then they are taken to the Inland Revenue Department to be stamped. STAMP DUTIES are payable on each contract depending on the purchase price as follows:
Up to 171,000 Euros - 2.56 Euros for every 1,708 Euros
Over 171,000 Euros - 3.42 Euros for every 1,708 Euros
