Tips on Buying Property in Cyprus …
If you’re buying property through an estate agent, it’s a good idea to find out as much information as you can.
For example, all estate agents are required by law to be licensed and have insurance.
A licensed estate agent is required to advise you of the bad points as well as the good ones about any property.
Make sure you don’t use one of the many non-registered agents and ask to see the estate agents license which must be displayed in the office. Legal estate agents are members of CREAA, the Cyprus Real Estate Agents Association.
Buying Property in Cyprus
- All Cyprus property is FREEHOLD so if you’re buying an apartment, you own a share of the land.
- Another benefit is that crude oil reserves and gas have been discovered off the South Coast of Southern Cyprus which of course is beneficial to the economy of Cyprus and also long term investments.
- Other benefits of buying Cyprus property include no inheritance tax and Cyprus is in the European Union.
- The legal system is based on the British system.
Agency fees:
The person selling the property pays the agents fees and you will pay a 1% reservation fee for the property to be taken off the market.
Mortgage in Cyprus:
The amount you need to pay for your deposit for a mortgage depends on your residency. If you’re a resident of Cyprus you can usually obtain a 90% mortgage which is normally repayed in 10 to 15 years.
Legal Fees:
Solicitor fees can be anything from £800. They’re normally 0.75% of the purchase price and as always, get independent advice but not from the lawyer of the developer.
Stamp Duty:
When buying property in Cyprus up to £100,000 the fee is 0.15% of the value. The fee then increases to 0.20%. This is paid when you sign contracts.
Transfer Fees:
These are charged by the District Land Registry Office when transferring property and registering it into the buyers name.
- 3% for property valued up to £50,000
- 5% for property valued from £50,001 – £100,000
- 8% for property valued above £100,001
Once you have found a property you will be required to pay a reservation fee and when this is paid the property will be withdrawn from sale. Your lawyer then has up to 28 days to do the legal work and prepare a contract.
English Speaking Lawyer in Cyprus >>
Don’t forget when you’re buying property in Cyprus it’s essential to have a good lawyer who speaks both English and Greek.
- You also need to open a bank account in Cyprus so funds can be transferred for completion date.
- When buying property in Cyprus, many people often use a local lawyer who has been recommended by the property developer. This is not such a good idea.
The best way of doing it is to take legal advice from a lawyer who has been recommended to you or take advice from someone who is entirely independent and not involved in the transaction. Do not sign any papers or hand over any money until you have consulted a lawyer.
Bank Account
You also need to open a bank account in Cyprus so funds can be transferred for completion date.
