Real Estate Agents in Cyprus

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Frequently Asked Questions

Is VAT applicable on Cyprus Real Estate?

For those buildings for which an application for a town planning permit was submitted prior to the 1.5.2004, no VAT. is charged in the event of a sale. For those after the above date, a VAT. of 15% is charged (no VAT. is charged on land/building plots for purchases prior to 1.7.2008).

In case of a house purchase which is classed as the main/permanent resident of the purchaser, and provided that it is not larger than 250m², the VAT. is refunded up to 10% (out of the 15%). This means that the VAT. must be fully paid and then the Authorities will require proof that the applicant is using the property as his main/permanent residence (with the production of water/EAC/CYTA bills, payment of taxes etc). Read More on Fees and Taxes

What property can a non-Cypriot purchase?

Buying property in Cyprus is quite easy. As a non-Cypriot you are entitled to purchase FREEHOLD for your personal use:

  1. An apartment or a house

  2. A villa on a building site not exceeding 4.000m².

  3. A piece of land not exceeding 4000m² for the purpose of erecting a house within a reasonable time period.

  4. Offshore Business Units can buy/built unlimited office/work space.

  5. A second home maybe permitted depending on the type. [ex., a holiday home in addition to a permanent home in the city.]

  6. Acquisition of Leases having a term in excess of 33 years duration, are treated similarly in Real Estate as a freehold in relation to the limitations.

  7. Acquisition in shares other than between husband and wife is not permitted.

Do properties have title deeds?

Properties have title deeds. Title deeds are issued by the Land registry department, of the Cyprus Government, a few years after completion of the project. Individual houses follow the same procedure. Upon approval by the Council of Ministers of the application and confirmation by the Central Bank that the purchase was with foreign funds, then the transfer of deeds can take place within a few hours.

Can a loan be obtained locally?

All the main banks in Cyprus offer loans for the purchase of property in foreign currency. If you acquire through a Developer he usually has prearranged loan facilities, which can be explained to you when interest is shown for the purchase of property.

Normally a deposit of 30% can facilitate a loan on the balance -70%-.

Interest rates vary but as a guideline you can expect, the base rate -libor- +2.0%. Repayment period can be up to 15 years, or more

What is required for the transfer of property and what are the fees payable?

The following documents are required to be submitted in order for property to be transferred to your name as a purchaser:

  1. Written confirmation by the Central Bank that the purchase was with foreign funds, which was imported into Cyprus.

  2. The sale contract.

  3. The Ministerial Council's permission for the purchased property.

  4. The property's title deeds, if available.

  5. Confirmation that all taxes for the purchased property [sewerage, immovable property, town taxes etc] have been paid.

Transfer fees are paid on the value that the Land Registry department determines that it is the Open Market Value of the property on the day of the original transaction /sales contract.

Transfer rates are as follows:

Property Value £

Fees -% transfer fee £

Up to 50.000

3% £1500

50.000-100.000

5%  £4000

100.000 and over

8%  

A Power of Attorney can be issued to a third party to attend and conclude the transfer on the buyer's behalf. There is a transfer fee advantage if the property is registered in the name of the two spouses [husband +wife] as the total purchase price is divided by two, thus lowering the rate of the transfer fee.

Do I need to employ a solicitor?

Although we recommend seeing a solicitor, you may find that is not necessarily required. If you buy through a reputable developer there are printed ready contracts. Should you wish to use a solicitor to check the contract and examine the property's date, any impediments etc, an average solicitor fee is £500-£1000.

Do I need a valuation/survey?

We suggest that you get a survey and valuation report especially for resales and for units of some age. The cost of a valuation report is, on average, £150, plus approximately £200 for a  structural survey.
Please always call for a quotation.

For people who have purchased property, is residential permit easily available?

Temporary Permit: The requirements for this permit is the production of a sales agreement and a Cypriot Bank Account. The residential permit can be from 1 year to 4 years.

Permanent Permit: In addition to the above the applicant must establish proof of an annual income of CY£12.000 per annum for a couple.

Since April 2004, Cyprus is a member of the EU, the procedural restrictions on the property purchase on EU members are lifted. All restrictions on property on EU members will be lifted after April 2009. However as from April 2004 EU citizens are not require either a residential or a working permit.

 

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