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Most Commonly Asked Questions

We can answer many of your questions about buying property in Cyprus, and if we don’t, we can refer you to someone who can! If you have a question that isn’t answered here, please contact us and we would be pleased to assist you.

Q: Who is eligible to purchase real property?

Since Cyprus joined the EU on May 1, 2004, all EU citizens have had the right to freely migrate, reside, and work in Cyprus as long as they have a valid EU passport. This includes the ability to purchase a home and invest in real ownership. When buying property in Cyprus, the Central Bank of Cyprus mandates that the property be paid using foreign monies. In order to purchase property in Cyprus, bank transfers and personal checks are accepted.
Loans in foreign citizens can be arranged for non-Cypriots. Loan The terms for buying property vary from one bank to the next, although often a loan of 60-80% of the property’s value is approved. In most cases, the repayment duration is 10 years or longer.
As long as they have an EU passport, all EU citizens enjoy the right to free movement, to live and work in Cyprus without limits. This includes the ability to purchase a home and invest in real ownership.
Non-EU citizens:

  • Can purchase a single house or apartment.
  • A maximum of 4014 square meters of land can be purchased.
  • You are not permitted to own any shares in a corporation that deals with real property.
  • Have never been convicted of a crime.

Q: Are there any tax benefits to living in Cyprus?

Cyprus has become somewhat of a tax shelter since joining the EU. When a UK national becomes a tax resident in Cyprus, they can save up to 70% on their income tax bill. If you declare all of your worldwide income in Cyprus, the UK government will not ask you to pay any additional taxes.

Q- How much do I have to pay in taxes and fees during the purchasing process?

A minor stamp duty tax is levied in Cyprus, and the amount is computed based on the purchase price. If the property has title deeds, you must pay transfer fees to have the deeds transferred to your name (s). The fees are paid by the purchase price as well as the number of names under whom the property will be registered. You will be charged connection fees for utilities such as electricity, water, and telephone when you take ownership of the property. You should also budget for legal fees, which are typically around 1% of the purchase price. The buyer does not pay an agent fee.
The stamp duty is calculated as follows: €2.56 per €1.708.60 euro for the first €170.860.00, and €3.417 per €1.708.60 euro for any amount over that.

Q – What is a cancellation agreement, and is there a price associated with it?

If a property lacks title deeds, a cancellation agreement is drafted, which voids the contract between the developer and the seller who still owns the deed. The developer and the new buyer then negotiate a new contract. A fee is required to cancel an existing contract between the property’s original buyer and the developer. This is a cost of selling without deeds that the seller bears. The fee is usually 3% of the purchase price, however it varies depending on the developer. When purchasing a property without deeds, you may be able to include a clause in your contract that caps a future possible cancellation charge at roughly 500 Euros.

Q- What are the stages required in buying a property in Cyprus?

1. You will enter into a contract with the individuals or companies who own the property you have chosen.

2. After that, the contract must be stamped. This will set you back €1.50 every €1000 of contract value. Within one month of the Contract being stamped, it will be placed at the Land Registry. This procedure ensures the Purchaser’s rights are protected.

3. To secure the purchase, you must show documentation of foreign currency as a foreign investor. It must be transferred from an external account to the Cyprus Central Bank. Cash can also be brought in on a person’s person, but this must be declared at the airport.

4. After the funds have been imported, the Central Bank must approve them. The Land Registry will also require this clearance before the Title Deed of the chosen property can be registered in your name.

5. If the property is sold in the future, the total value imported plus any profit up to £10,000 per year can be exported.

6. A request for approval to acquire property in Cyprus must be presented to the Council of Ministers. This must be received before the transfer of ownership (Title Deed) can take place. This application will ask for information about the property as well as each applicant’s personal and financial situation. Because this permit normally takes six (6) months to complete, it is recommended that you apply ahead of time.

7. Once the permit from the Council of Ministers has been received, and providing the Title Deeds have been issued (in the case of new property), the transfer can begin.

Q- Is it possible for me to receive a mortgage?

The minimal amount you will need to give for a deposit is determined by your residency. Cyprus locals can acquire a mortgage with an interest rate of 80%, whereas EU residents must put down a 20% to 40% down. The minimum deposit amount for non-EU residents is normally 30 percent to 40% of the purchase price.
Arrangement fee: Arrangement fees are charged by all banks. The majority charge 0.75 percent to 1.0 percent of the loan amount. It’s best to double-check because each bank is different.
Term of repayment: This can be as little as 10 to 15 years, but it can also be up to 30 years and even longer.

Is it true that the VAT paid on a property purchase can be refunded?

Yes, after 5 years of ownership, a 10% return is available for permanent residents who are first-time buyers, as long as the house is under 250 square meters in size.

Q – How do we figure out how much it costs to transfer a property?

The purchase price is usually the market value, and the fees are calculated depending on the property’s market value.

The first 85,430 Euros are charged at 3%, the following 85,430 Euros at 5%, and any amount exceeding 170,860 Euros at 8%.
The following is an example of a 200,000-dollar house:
85,430 multiplied by 3% equals 2562.90.
Total tax fee = 6833.40 (85,430 at 5% = 4271.50, 29,140 at 8% = 2331.20).

Q – How much capital gains tax will I have to pay if I sell my property?

You must pay 20% of the difference between the sales price and the price you paid for the property when you first bought it, plus inflation during that time. A deduction of 17,086 Euros per owner and 34,172 Euros if a pair is removed from the sales price is available. The allowance is 85,430 Euros if you are a permanent home of Cyprus and have lived there for 5 years.

Q: How can I determine a home’s market value?

When you find a home you like or are considering selling, you should have it appraised by a licensed appraiser. We can help you by recommending someone or by showing you how much similar properties in the neighborhood have sold for recently.

Q – What is your education of Cyprus’ educational system?

Cyprus’ education system is well-developed, with both public and private schools available. Cyprus spends about 7% of its GDP on education, making it one of the top three education spenders in the EU. In general, public schools are thought to be of comparable educational quality as private schools. Many residents take their children to private English-speaking schools since they are aware that their children will be competing for university slots. In addition, most children in both private and public schools take extra private classes to keep up with or ahead of the rigorous curriculum.
Almost 80% of Cypriot students are enrolled in an international university. Cyprus also boasts the greatest proportion of working-age citizens with a higher education in the EU.

Q- How is Cyprus’s transportation system?

Buses, taxis, and’shared’ taxi services, often known as service taxis and substantially less expensive than a private cab, make up public transportation. Per capita, private car ownership is the fifth highest in the world. The left side of the road is where traffic moves, not the right. With winding roads and some aggressive drivers, driving can be risky, so stay attentive at all times. Despite enhanced police patrols and severe fines, Cyprus has a high death and accident rate.
Extensive plans are in the works to extend and improve bus services and restructure public transportation in Cyprus; work is still ongoing, although progress has been made. Limassol and Larnaca have major ports that service freight, passenger, and cruise ships. Paphos has one international airport, while Larnaca has a larger one, both of which have recently been refurbished (2009).

Q – Where can I get the most up-to-date cost of living figures in Cyprus?

The Statistical Service of the Republic of Cyprus is one of the better sources we’ve found. Prices and inflation, economic considerations, tourism statistics, labor, and much more helpful information may all be found on this site.