Property Process in Cyprus. It's not as difficult as it seems at the first glance.

In order to purchase a house in Cyprus you should take into account the following ..

Individuals who are not citizens of the EU Member States have the right to buy property in absolute ownership, while the offshore companies can buy space for their business or for residence of their foreign employees.

Foreigners are allowed to buy one real estate object for personal use (a flat or a plot of land for construction, or one house, and its entire area should not exceed 4012 square metres).

Property Process in Cyprus 7 Steps

Property Purchase Process in Cyprus: A Step-by-Step Guide

Purchasing property in Cyprus is a straightforward process, offering opportunities for both EU and non-EU citizens. Below is a detailed guide to help you navigate the property purchase procedure in Larnaca or elsewhere in Cyprus.

Key Considerations

1. Ownership Rights:

   • Non-EU citizens can purchase one property for personal use, such as a flat, house, or land plot, not exceeding 4,012 square meters.

   • Offshore companies may acquire property for business purposes or housing foreign employees.

2. Legal Requirements:

   • Non-EU citizens must obtain permission from the Council of Ministers to purchase property.

7 Steps to Buying Property in Cyprus

1. Reservation Deposit:

   • Choose your desired property and pay a reservation deposit (typically €5,000). This secures the property for up to one month and removes it from the market.

2. Permission from the Council of Ministers:

   • Apply for permission to purchase the property through the Council of Ministers. Once approved, open a bank account for payment. Payments can be made via wire transfer or checks in euros or other currencies.

3. Signing the Contract:

   • Sign the sale agreement and pay the first installment (40% of the total price, including the reservation deposit). Legal services are recommended and typically cost around 1% of the property's value.

4. Land Registry Confirmation:

   • The Land Registry Office verifies the property's title deed to ensure there are no restrictions (e.g., mortgages or liens). This step ensures legal security for buyers.

5. Stamp Duty and Registration:

   • Pay stamp duty to the Internal Tax Department and register your purchase with the Land Registry Office. This protects your ownership rights and prevents unauthorized transactions involving your property.

6. Final Payment:

   • Complete the remaining payment (60% of the property's value) as per the contract terms. All paperwork is typically finalized within one month.

7. Title Deed Transfer:

   • Obtain the title deed from the Regional Land Chamber in the presence of both buyer and seller. Ensure all registration fees and taxes are paid before this step.

Financing Options

Cypriot banks offer long-term mortgage loans with favorable interest rates. Key details include:

• Loan duration: Up to 15 years

• Loan currency: Euro or other currencies

• Maximum loan amount: 70% of property value

• Eligible properties: Finished properties or those under construction (loans are not granted for land purchases)

Additional Tips

• Conduct thorough due diligence on the property before making any payments.

• Work with experienced real estate lawyers to ensure compliance with local laws.

• Consider additional costs such as VAT (5% for residential properties), transfer fees (3%-8%), and legal fees (~1%).

By following these steps, you can confidently navigate the property purchase process in Cyprus while securing your investment in this beautiful Mediterranean destination.