Buying Property in Cyprus |
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| Permission to buy property | |
| Non-EU citizens are entitled to freehold ownership of properties and offshore entities may buy premises for their businesses or residence for their foreign employees. Permission to buy property must be sought from the Council of Ministers by written application, which must be submitted by the non-EU citizen purchaser after the contract of sale is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The same applies to EU citizens that are not resident in Cyprus. EU citizens that are permanent citizens in Cyprus do not require permission to buy any immovable property. | |
| EU citizens with permanent or temporary permit can register as many properties as they wish in their name, given that they have signed a confirmation to the government of Cyprus that they will stay in the country for the following five years. | |
| Legal entities established in EU countries that have their headquarters and registered office in Cyprus, do not require permission to buy any immovable property. Legal entities established in Cyprus and controlled by citizens of the EU require permission to buy immovable property in Cyprus as well as any other legal entities. CyPortfolio Ltd undertakes to submit the application on client’s request, at a fee. | |
| Property selection | |
| With our wide selection of properties and proven experience in the market, we are the people to turn the home of your dreams into reality. A deposit (from €3.000) will reserve your property for one month. | |
| Financing facilities & terms of payment | |
| CyPortfolio Ltd offers a number of mortgage facilities with various banking institutions in Cyprus, either in Euros or in any other currency, with just 30% initial contribution and interest rates as low as 4,5%. The procedures are simple and our experienced sales consultants will assist you in choosing the most suitable plan for your needs. Payment terms are specified on the price lists of our developments. For off-plan properties we offer, the required down payment with the contract of sale starts from 20%. | |
| Legal fees | |
| You may request advice from an experienced property solicitor before signing the contract of sale. These vary according to the price of the property, but the fee of an experienced property solicitor is usually between €2.000 - €3.000 and is payable to the solicitor upon signing of the contract of sale. | |
| Contract of sale | |
| The legal system in Cyprus is based on the British system. When purchasing a property the contract you sign is aprivate agreement between you (the owner) and CyPortfolio Ltd.All contracts of sale are in English, but we can provide you with an official translation in any language that is required. | |
| Filing the contract to the Land Registry Department | |
| Once the contract of sale is signed, CyPortfolio Ltd, or your lawyer, files it with the Land Registry Department to ensure that your beneficial rights to property ownership are secured. The contract of sale can be withdrawn only with your consent. The Cyprus Department of Land and Surveys is the oldest governmental department of the public sector, established in 1858. Through the years it has been updated, making it one of the most sophisticated land registry systems in the world. Therefore, purchasing a property in Cyprus, is a very straightforward procedure. | |
| Stamp duty | |
| After the contract of sales is signed, the purchaser is liable for the payment of stamp duty at 0,15% of the value up to 170.860. Thereafter, the rate becomes 0,2%. Payment is due within 30 days of signing the contract of sale. | |
| Transfer fees | |
| Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value
of the property at the time of the purchase and are
calculated as follows: Up to €85.430 3% €85.431 - €170.860 5% Over €170.860 8% |
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| VAT payable on property | |
| Since Cyprus’ accession into the European Union, in 2004, VAT is paid when buying a newly built property. In cases where the application for a town permit was filed after the 1st of May 2004, the VAT applied is 15%. For the purchase of land, no VAT is applied. | |
| Annual property taxes and fees | |
As the registered owner of the property, you will be liable for an annual Immovable Property Ownership Tax calculated on the market value of the property as at 1st of January 1980 (paid by the 30th of September in the year). Immovable Property Tax is payable to the Inland Revenue Department
of the Republic of Cyprus. Local Authorities, charge €85 – €256, depending on the size of your property, for regular refuse collection, street lighting, sewerage and similar services to the community (Communal Services). Communal Services fees are payable to the local Municipal Authority. The registered owner of the property is liable to an annual Municipality Tax calculated on the market value of the property as at 1st of January 1980. The rates vary from 1‰ - 2‰. Municipality Tax is payable to the local Municipal Authority. As the registered owner of the property you are liable to an annual Sewerage Tax calculated on the market value of the property as at 1st of January 1980. The rates vary from 3‰ – 3,5‰. Sewerage Taxes are payable annually to the local Sewerage Board of the community. |
