Costs and procedures when buying property in Cyprus

Buying a property in Cyprus is relatively easy; a non-Cypriot can buy for their own personal use either an apartment, a house, a villa or a piece of land, and the maximum allowed area for purchase is 4,013 sq.m, although in certain circumstances this can be exceeded.

As a matter of course, permission for the transfer of property in Cyprus to a non-Cypriot must be sought from the Cyprus Council of Ministers, normally a formality; while waiting, the buyer can take possession of the property. The application to the ministers can be made within a reasonable amount of time after the contract of sale has been agreed. In Cyprus, real estate transfer taxes are payable in order to transfer freehold property ownership into the name of the buyer; this is done when the authorities have issued the title deed for the property and the purchase has been completed.

The transfer fees for buying property in Cyprus are on a graduated scale.

·         up to €85,430 - 3% transfer fee

·         €85,431 to €170,860 - 5% transfer fee

·         over €170,860 - 8% transfer fee

For example, if the price to buy the Cyprus property is €153,774, the first €85,430 will be at 3% (€2,563) and the next €68,344 will be at 5% (€3,417), making the total fees payable €5,980.

Stamp duty when buying property in Cyprus applies after the contract has been signed. This is currently set at 0.15% (per thousand) for each €1,708 up to €170,860. Above this it is 0.2% for each €1,708.

There is a further annual tax on Cyprus property, the Immovable Property Tax, an annual tax based on the value of the property. The rates are as follows:

·         up to €170,860 - exempt

·         €170,861 to €427,150 - 0. 2%  

·         €427,150 to €854,300 – 0.3%

·         over €854,300 – 0.35%

Acquiring the title deed for a property in Cyprus is a simple procedure of transfer of ownership from vendor to buyer, and this is done through the Cyprus Land Registry Office. In the case of a non Cypriot, a prerequisite of registration is proof that the property has been paid for with foreign exchange.

When someone buys a property under construction, especially an apartment, there is probably no title deed in existence for the building yet. It is important in this case to have a lawyer, and you should consider this and include it in the contract of purchase. When negotiating the contract, the lawyer should be present at all times to safeguard your interests.

The legal fee usually charged by a lawyer when you buy a property in Cyprus is approximately 1% of the contract value, and this fee will cover management of the sale and general agreement, regulating the use of common areas if it applies, and submission to the land registry.

Buying a new finished or resale property

When you sign the contract for a new or resale property or a plot of land you must pay a deposit. If you are buying a resale or a new finished property (that is, not off-plan), you usually pay a deposit of ten per cent when signing the contract (the actual amount may be negotiable), with the balance paid on completion when the contract of sale is signed. Note that before signing a contract it is essential to have it checked by your lawyer. One of the main reasons is to safeguard your interests by including any conditional clauses in the contract.

Buying off-plan

When buying an uncompleted property 'off-plan', that is, property still to be built or which is partly built, payment is made in the following approximate manner:
* 30 per cent on signing (minus the reservation fee)
* 20 per cent when concrete skeleton and roof is finished
* 15 per cent when bricks and plastering is completed
* 15 per cent when tiling and carpentry is completed
* 10 per cent carpentry, sanitary ware etc
* 10 per cent on completion with CYŁ500(€ 854.30) held back until title deeds are ready