What you need to know to buy Property in Cyprus
Buying a property in Cyprus is very straightforward, and our team of property experts at Olias Homes are on hand to support you with every stage of the process. We have compiled a short step by step guide of everything you may need to know before you begin the purchase process.
Great Advice for Anyone Buying in Cyprus
These key points will help answer your questions and our friendly and experienced team are always on hand to help and offer futher advice.
Choosing your property.
The first step when purchasing a property in Cyprus is choosing the most suitable property that satisfies your needs and expectations. Olias Homes has a team of property consultants who will be happy to take you on a tour of our available projects and show-homes, either virtually or in person, whichever is more convenient for you. Once you have chosen your property, you will meet with a local independent lawyer to proceed with the next steps. Everything can be performed and actioned at your chosen lawyer’s office, it is not necessary to personally visit any governmental departments as this will be done on your behalf.
Legal andvice and fees.
When purchasing a property in Cyprus, you will need to use the services of a local lawyer on the island. Olias Homes prefer not to have an inhouse lawyer, and recommend our clients opt for an independent representation. We can provide contact details and arrange introductions to local and reputable firms, if requested.
To give a general guide, legal fees are normally approximately 1% of the overall property purchase price, although this can vary depending on the specifics of each individual case.
For more information on inspection trips when visiting us from overseas, please get in touch.
Contract of Sale.
Once the lawyer has performed all the relevant checks on the desired property, and obtained all required documents from the developer such as planning permit, plans, licences etc, they will then prepare a contract of sale which must be signed by all parties, and will then be stamped and registered to the Land Registry department.
Request for Permission to buy.
If you are a non-EU national, then you will need to submit an application to the local district office, in order to obtain their approval to purchase the property. The lawyer will assist you with this, and it is a simple and straight forward process. It is more of a legal formality, and it would be extremely rare for an application from a bona fide applicant to be rejected.
The payment terms will differ depending on the stage of the project completion, for example if the property is off plan, under construction or complete. Generally, a reservation deposit will be requested immediately to reserve the property and remove it from the market, with the remaining payment schedule terms to be agreed before the contracts of sale are signed.
Stamp duty is applicable to all property sales in Cyprus, and the amount due depends on the property price:
Up to €5000 – No stamp duty is payable
From €5000 to €170,000 Stamp Duty is at €1.50 per €1000.
Over 170,000 stamp duty is at €2 per €1000, up to a maximum of €20,000.
VAT Payable on Property.
When buying a new property, a standard VAT rate of 19% is required to be paid.
However, as from the 1st of October 2011 a reduced rate of 5% can be imposed on purchasing or construction of a dwelling in Cyprus, as long as the dwelling is used as the principal and permanent residence in the Republic by the beneficiary.
Tax Incentives In Cyprus
Inheritance Tax - There is no inheritance tax in Cyprus, as this has been abolished since 2000.
Immovable Property Tax- There is no immoveable property tax in Cyprus.
Capital Gains Tax – A rate of 20% tax is applied to the profit made from the disposal of a property, however there are various exemptions for reduction that can be applied.
Upon completion of the construction of your project, the developer/lawyer will immediately apply for the individual titles deeds to be issued, which will normally take just a few years for
One of the many advantages of choosing a reliable and professional company like Medousa Homeland Properties as your developer is that our projects tend to be of a smaller scale, owned by only one or a few clients, therefore construction for the whole project begins around the same time, is completed promptly and all title deeds can be applied for immediately, there is no waiting around for multiple investors in order to complete the project.