Buyers Guide - Cyprus
This section gives you a few things to consider if you are planning on purchasing a home or investment property in Cyprus.
Why Buy in Cyprus?
Cyprus is expected to join the Euro in 2008, having joined the EU in 2004. Many people believe that the move will have a good impact on property prices, inflating them. Property prices have more than doubled since 2000, rising by approx 15% in 2005 alone. A new airport is to be built and a few new golf courses have been given permission to be built.
See our comprehensive guide to Cyprus
Fees and taxes
- Transfer tax in Cyprus is between 3% and 8% with additional stamp duty payable up to 0.2% of the property's purchase price.
- You also need to budget for annual property taxes which can be as much as 3.5% of the value of the property.
- In addition allow between 1 - 2% for legal fees and approx. 3 - 10% for Estate Agents fees, although they normally charge 5%.
- Notarisation will cost approx £1,350.
The Buying Process
When a property has been chosen the buyer will put down a deposit of approx. £2000. This represents a legally binding purchase agreement. Contracts are then drawn up, detailing the conditions of sale and at this point a further deposit of up to 30% is payable. The deposit will vary depending on if it is a new build or a re-sale property with a lower deposit required for a re-sale property (around 10%). At this point the contracts are sent to the land registry and the buyer must make a written application to the Council of Ministers in Cyprus for approval to transfer ownership of the property into the buyers name. This is really only a formality as no one from the UK has ever been denied approval. You can live in your property whilst waiting for the approval to come through.
Buyers need to present bank and character references with the application.
The balance of the due monies is generally paid on completion for resales but in stages agreed by the developer for new build properties.
All taxes are payable when approval is granted.
Health
The standard of health care in Cyprus is very good and English is commonly spoken throughout. Visiting Brits would be given emergency treatment but future treatments would have to be paid for. Private health care is reasonable and is advisable for anyone spending a large proportion of their time in Cyprus.
Visa and Residency
Any EU citizen can stay in Cyprus for up to 90 days without the need for a Visa. If you wish to stay longer you will need a residency permit which can be applied for from the local Cypriot authorities. The process is fairly straight forward for anyone coming from an EU member country.If you wish to stay permanently you need to apply for a Alien Registration Certificate.To obtain this you need proof or residence, funds and identity.
Property Costs
1 Bed Apartment - £68,000
2 Bed Apartment - £102,000
3 Bed Villa - £163,000
4 Bed Villa - £205,000
Useful Links
Bulgaria, Florida, France, Italy, Dubai, Croatia, Portugal, Greece, Spain, Turkey
