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The Buying Process in Cyprus

Last updated January 2018

This Guide is meant to be a quick get up to speed guide to what makes buying in the Cyprus different to other countries we would however strongly recommend that you get your free copy of our Buyers Guide by clicking the link below and we will send it to you straight away. Please note that our system does require Mobile Code Authentication before sending the brochure out.

The Buying Process

The legalities of purchasing a property in Cyprus are extremely straightforward and wholly safeguard the purchaser’s rights. Exclusive Hot Properties has broken down the complete purchase process into ten simple steps to provide a comprehensive overview of all the stages you’ll go through. We regularly provide progress updates and photos, ensuring our clients are always aware and fully informed about the status of their investment.

FINANCING YOUR CYPRUS PROPERTY PURCHASE

Property financing options in Cyprus include:

  • Outright payments

  • Mortgages or loans

Exclusive Hot Properties executives can help you choose the financing option best suited to you.

SELECT & RESERVE YOUR CYPRUS PROPERTY

The first stage of purchasing an off-plan Exclusive Hot Property entails payment of a reservation fee. A nominal deposit of €2,000 is required to reserve a property with a purchase value under €500,000 and a deposit of €4,000 is required to reserve a property with a purchase value greater than €500,000. Reservation fees are transferable to another property or family member for a period of one year.

LEGAL

EHP recommends that clients take independent legal advice from a local lawyer and are able to refer you to a number of reputable lawyers in Cyprus.

CYPRUS PROPERTY CONTRACT OF SALE

The Cypriot legal system is British based. All contracts of sale are private agreements between the vendor and purchaser and must by law, be in writing. EHP prepares all contracts of sale in English and it is a language recognized by the government authorities

FILING YOUR CYPRUS PROPERTY CONTRACT OF SALE WITH THE LAND REGISTRY

Once you have signed your contract of sale, your lawyer should file this with the Land Registry within 180 days. This is termed "Specific Performance' and ensures your beneficial rights to property ownership are legally protected. Once filed, your contract of sale cannot be withdrawn by anyone other than yourself, meaning that your property cannot be leased, sold, transferred or mortgaged without your consent.

CYPRUS PROPERTY STAMP DUTY

This is a one off payment borne by the purchaser and is payable to any Taxation Office of the Republic. Your lawyer can make the payment on your behalf, which is due within 30 days of signing the contract.

Property Value

Stamp Duty

Up to €5,000

0%

€5,001 - €170,000

0.15%

€170,001 & above

0.20% (with a maximum stamp duty amount of €20,000)

CYPRUS PROPERTY TRANSFER FEES

Upon transfer of the property and registration in the purchaser’s name, the district Land Registry office will charge transfer fees.

These are based on the market value of the property at the time of purchase and are calculated as follows:

Value

Rate

Up to €85,000

3%

€85,000 - €170,000

5%

Over €170,000

8%

  • For those who pay VAT on their house purchase, property transfer fees are waived.
  • For those who do not pay VAT on their purchase, property transfer fees are reduced by 50%.
  • Property Transfer Fees become payable after the issuance of title deeds, when the property is transferred to the purchasers name.

Quick Guide for purchasing property in relation to Golden Visa and Golden Passport sales

This is somewhat different as this is for new properties and the buying costs are somewhat different.

Let’s take example of property purchase of €300,000 for PR:

  • Client chooses property either Overseas or during Inspection Visit in Cyprus

  • Client pays reservation fee of €5000

  • Clients lawyer will oversee the purchase procedure

  • Sales Agreement is signed by both parties

  • Client has 30 days from signing to pay €200,000 (normally client decides to pay this amount immediately so to start the PR application)

  • Client needs to pay 19% VAT and apply for the rebate of 14% VAT; Clients only need to pay 5% in the end

  • Clients lawyer will make application for PR

  • PR is approved and issued within 2 months from application date

  • Client pays balance of €100,000 within 15 days after PR is issued and also takes delivery of property

In the event of a property purchase of €2,000,000 for passport application:

  • Client chooses property either Overseas or during Inspection Visit in Cyprus

  • Client pays reservation fee of €10,000

  • Upon signing sales agreement the client will need to pay full amount of €2,000,000 + full amount of 19% VAT

  • The payment of €2,000,000 is held in joint account between clients lawyer and the developer

  • The rebate of 14% VAT (where applicable) is received several weeks after Passport is issued

  • Clients Lawyer makes passport application

  • Passport approved in 3 months / the Passport will be issues in a further 3 months

  • Payment of €2,000,000 is released to developer

  • Client takes possession of his property or properties according to the sales agreement

PROPERTY RUNNING COSTS

Both the cost of living and property running costs are pleasantly low in Cyprus.

COMMUNAL EXPENSES

A service charge is applicable for properties on a managed development. The cost depends on the area of your property (m²) and the facilities and service available at the specific development. The service charge ranges from €350-1500, every six months (for standard type developments).

LOCAL AUTHORITY TAX

This is similar to Council Tax, and is usually around just €50 - €200 per year.

IMMOVABLE PROPERTY TAX

Immovable property tax has been abolished as from January 2017.

BUILDINGS INSURANCE

This is provided at no cost until your property is delivered. Thereafter, the property owners need to have buildings insurance in their own name. EHP network can offer annual premiums from €260.

CONTENTS INSURANCE

From delivery, we recommend that owners take out contents insurance. The EHP network offers annual premiums from €35.

WATER

There is a standing charge per quarter of €12 - €13, depending on the area, plus consumption costs on a sliding scale as follows:

Cubic meters

cent (5% vat not inch)

1-15

0.43

16-30

0.55

31-45

0.67

46-60

0.82

61-65

1.45

66-75

2

76+

4

ELECTRICITY

The bi-monthly charges for the supply of electricity (at the basic price of €300/m.t. of fuel cost), are given below:

Units (KWh) electricity

Total units

unit charge consumption cent/KWh

fixed charge based on total €/bi-monthly

first 100 units

0-120

13,50

2.06

next 200 units

121-320

14,31

2.12

next 180 units

321-500

14,75

3.49

next 500 units

501-1000

15,18

5.30

Any additional

1001+

15,35

6.68

TELEPHONE

There is a standing charge for a landline, which is approximately €16 per month. The actual call charges are very reasonable.

CABLE OR SATELLITE TV

Subscription packages are available from €25 per month, and include a wealth of channels such as BBC World, Discovery Channel, and CNN etc. Prices vary according to the channels selected.

 

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