Everything you need to know before buying property in Cyprus
At Olias Homes, we make buying a property in Cyprus a straightforward process. Our team of property experts are always available to support you at every stage of the process. To help you get started, we’ve put together a short step-by-step guide that covers everything you need to know before beginning the purchase process.
Essential Advice for Successfully Buying Property in Cyprus
These key points will help answer your questions and our friendly and experienced team is always available to offer further assistance and advice.
Choosing your property.
The first step in purchasing a property in Cyprus is to choose the most suitable property that meets your needs and expectations. At Olias Homes, our team of property consultants is available to take you on a tour of our available projects and show homes, either virtually or in person, whichever is more convenient for you.
If you're visiting us from overseas, we can arrange inspection trips to view our available properties. Contact us today for more information on our services.
Once you have chosen your property, you will meet with a local independent lawyer to proceed with the next steps. All necessary procedures can be performed and actioned at your chosen lawyer's office, eliminating the need for you to personally visit any governmental departments as this will be done on your behalf.
Legal andvice and fees.
If you're purchasing a property in Cyprus, it's important to use the services of a local lawyer on the island. At Olias Homes, we believe in providing our clients with independent representation, and do not have an in-house lawyer. We can help you find a reputable local firm by providing contact details and arranging introductions if requested.
Legal fees for property purchases in Cyprus are typically around 1% of the overall purchase price, although this can vary depending on the specifics of each case.
Contract of Sale.
After the lawyer has performed all the necessary checks on your desired property and obtained all required documents from us, the developer, such as planning permits, plans, licenses, and more, they will prepare a contract of sale. This contract must be signed by all parties involved and will be stamped and registered with the Land Registry department.
This process ensures that the sale is legally binding and protects both the buyer and the seller.
Request for Permission to buy.
If you're a non-EU national looking to purchase property in Cyprus, you'll need to submit an application to the local district office to obtain their approval. The lawyer handling your property purchase will assist you with this process, which is simple and straightforward. It's primarily a legal formality, and it's highly unlikely that an application from a genuine buyer will be rejected.
Payment terms will vary based on the stage of the project completion - whether the property is off-plan, under construction, or complete. Typically, a reservation deposit will be required upfront to reserve the property and take it off the market. The remaining payment schedule terms will be agreed upon before the contract of sale is signed.
Stamp duty is applicable to all property sales in Cyprus and the amount payable depends on the property price.
For properties priced up to €5,000, no stamp duty is payable.
For properties priced from €5,000 to €170,000, stamp duty is at €1.50 per €1,000.
For properties priced over €170,000, stamp duty is at €2 per €1,000, up to a maximum of €20,000.
VAT Payable on Property.
When purchasing a new property, a standard VAT rate of 19% is applicable. However, starting from October 1st, 2011, a reduced rate of 5% can be applied for the purchasing or construction of a dwelling in Cyprus, as long as the dwelling is used as the beneficiary's principal and permanent residence in the Republic.
Tax Incentives In Cyprus
Inheritance tax and immovable property tax do not apply in Cyprus since 2000.
When disposing of a property, capital gains tax at a rate of 20% will be applied to the profit made. However, various exemptions for reduction can be applied.
At Olias Homes, we take pride in delivering our projects on time and ensuring that individual title deeds are promptly applied for upon completion of construction.
One of the advantages of choosing us as your developer is that our projects are typically smaller in scale and owned by only one or a few clients. This means that construction for the entire project begins at the same time, and is completed promptly. With us, you can expect a reliable and professional experience from start to finish, with the added benefit of being able to apply for title deeds immediately without waiting for multiple investors to complete the project.