Buying a property in Cyprus is easy! The whole process can take as little as one week, although in reality is more likely to take 6-8 weeks.

Use the links below to jump to required sections

Making an Offer
Specific Performance
Approval of the Council of Ministers
Paying for Your Property
Solicitors
Selling Your Property
Property Purchase & Ownership Costs
Taxation

Making an Offer

Buying a property in Cyprus is not very different from doing so in the UK. You make an offer, and if it is accepted it is normal to give a nominal deposit (between EUR 3,410 / CYP 2,000 / GBP 2,547 and EUR 5,115 / CYP 3,000 / GBP 3,820 to reserve the property. In Cyprus, unlike the UK, this process is legally binding, so no gazumping occurs.
Contracts are then drawn up, upon signing of the contract*, usually around 30 days from when reservation takes place. Depending upon whether you are purchasing an off plan property or a re-sale property the either you will be asked to pay for an off plan property at least 20-30% of the value of the property; the remaining sum paid according to the terms agreed with the developer. For a re-sale property, as in the UK, 10% is paid on exchange of contracts, the remainder on completion.

* You do not need to be in Cyprus to sign the contact as you can assign Power of Attorney to your lawyer to sign for you.

Agents' commissions, as in the UK, are paid by the seller.

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Specific Performance

The contract, once duly signed and stamped, must be deposited at the Land Registry office within two months. This is done by your lawyer, This measure prevents the seller from re-selling the property to anyone else, hence safeguarding the buyer until the Council Of Ministers application has been made and approved.

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Approval of the Council of Ministers

Having signed a contract of sale for your property, it is necessary to either make an application to the Council of Ministers to grant its approval for a non-Cypriot to acquire immovable property or, if you intend to live in Cyprus permanently then you can apply for a residency permit from the local immigration office.
For Council of Ministers approval this is a routine procedure which controls issues such as criminal records, that land size is within the required limits, that only one home is owned in Cyprus by the buyer, and that the buyer has the minimum required funds to live in Cyprus. You will simply require a bank reference and a character reference.
The whole procedure can take up to 12 months, but in the meantime there is no restriction on you taking up possession of your property.

The following points should be considered:

• Should approval not be granted, you can re-apply.
• Should approval not be granted, you have 17 years in which to sell your house.
• You can live in your house from the moment you purchase it, prior to the Council of Ministers granted approval.
• You can re-sell your property during this time. Inheritance rights are not affected by this process.
• No UK citizen has ever been refused approval.

Paying for Your Property

You are required to pay for your property from external funds. Personal cheques, bank drafts and telex transfers are all acceptable.

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Solicitors

It is advisable to seek advice from an independent solicitor on the purchase of your property. Their duties will be to do the necessary searches on the property, check the contracts (and draw them up in some cases), and complete the specific Performance and Council Of Ministers application.

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Selling Your Property

When you sell, you can repatriate immediately all proceeds that were paid for in properly imported foreign currency.

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Property Purchase & Ownership Costs

1. Purchasing Costs
   
   Solicitor: EUR 1,705 / CYP 1,000 / GBP 1,274 (+/-) or 1% of the value of the property
   Search fees: Included in above
   Property Transfer tax: see below
   Stamp Duty: see below
   Council of Ministers application: EUR 341 / CYP 200 / GBP 255 (+/-) often included in solicitors fees.
   Transfer of electricity & water (connection): EUR 256 / CYP 150 / GBP 191 (+/-)
   
   
2. Property Transfer Tax
   
   This is necessary in order to transfer FREEHOLD ownership to your name, and is due when the property is registered in your name at the Land Registry Office. This process is completed after the Council of Ministers approval.
   Fr lodging Title Deeds with Land Registry (when they are issued) some lawyers can charge EUR 427 / CYP 250 / GBP 319 (+/-) for this service.
   The Property Transfer tax is a once-only tax payable to the Land Registry Office according to the scale below:
   
   

   Value of Property	Transfer fee rate %
   up to EUR 85,239 CYP 50,000 GBP 63,658	3.0
   from EUR 85,239-170,477 CYP 50,000-100,000 GBP 63,658-127,316	5.0
   over EUR 170,477 CYP 100,000 GBP 127,316	8.0

   
   
3. Stamp Duty
   
   The purchaser is liable for the payment of stamp duty at the rate of EUR 2.56 / CYP 1.50 / GBP 1.91 per thousand up to the value of EUR 170,477 / CYP 100,000 / GBP 127,316 and thereafter the rate is EUR 3.41 / CYP 2.00 / GBP 2.55 per thousand. This duty should be paid within 30 days of signing the contract.
   
   
4. Mortgage Fees
   
   If you take a mortgage out in Cyprus there is a registration fee of 1% of the amount secured plus any relevant stamps.
   
   
5. Immovable Property Tax
   
   The registered owner of the property is liable for this annual tax and it is based upon the value of their property
   
   

   Value of Property	Annual Tax per Thousand
   up to EUR 170,477 CYP 100,000 GBP 127,316	exempt
   from EUR 170,477-426,191 CYP 100,000-250,000 GBP 127,316-318,289	EUR 3.41 CYP 2.00 GBP 2.55
   from EUR 426,191-852,381 CYP 250,000-500,000 GBP 318,289-636,577	EUR 5.11 CYP 3.00 GBP 3.82
   over EUR 852,381 CYP 500,000 GBP 636,577	EUR 5.97 CYP 3.50 GBP 4.46

   
   
6. Capital Gains Tax
   
   Capital Gains Tax is levied at 20% on gains arising from the disposal of property. However, for foreign-owned property that is sold, there are allowances and exemptions from Capital Gains Tax exist. As the gain also takes into account inflation, the actual appreciation coupled with the allowances and exemptions leaves little for taxation. Please refer to your financial adviser for further information on this.
   
   
7. Estate Duty/Inheritance Tax
   
   If the deceased was domiciled in Cyprus, there is no Estate Duty payable. If the deceased was a tax resident in Cyprus, there is no Estate Duty on the Cypriot property or any other property owned by the deceased in any other country.
   
   
8. Ongoing costs
   
   Property Owner Costs.
   a) Electricity (average, depending upon usage): EUR 171 / CYP 100 / GBP 128 (+/-) every two months
   b) Water (average, depending upon usage): EUR 52 / CYP 30 / GBP 39 (+/-) every two months
   c) Municipality tax, depending upon the municipality for rubbish, sewerage, street cleaning, street lighting etc: EUR 137 / CYP 80 / GBP 102 (+/-) a year
   d) Service charges for apartments: EUR 682 / CYP 400 / GBP 510 (+/-) a year
   
   

Taxation

Double taxation agreements exist between Cyprus and numerous European countries, which regulate taxation matters regarding residents of the island. As an example, alien retirees are taxed on a flat 5% per annum on pension and investment income brought into Cyprus, with exemptions totalling EUR 6,820 / CYP 4,000 / GBP 5,093 per person or EUR 13,639 / CYP 8,000 / GBP 10,186 per married couple. Please refer to your financial adviser fir further information on this.

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