About Us Contact Us Site Map

Property purchase

Republic of Cyprus

Foreign ownership

EU citizens do not need permits or visas to enter Cyprus and since 2004, there are no restrictions on EU residents buying property. However, most can only stay for three months at a time without a permit.

Tax benefits

People retiring to the island must prove that they have sufficient income or funds to support themselves. Retiring here has significant tax benefits and the UK has an agreement with Cyprus which allows state pensions to remain index-linked when pensioners are resident on the island.

Reservation deposit

The process of buying property in Cyprus is fairly straightforward. The first step is the signing of the Reservation Deposit Agreement. During this period, the appointed lawyer will make checks with the District Land Registry to ensure that the vendor is the real owner and that there are no problems with title deeds. The reservation amount is usually 1% of the purchase price.

Contract of sale

Before exchanging contracts, your lawyer will also make a planning department search and a company search. Once the searches are completed, purchaser and vendor will sign the contract of sale. Upon signing the contract of sale, the purchaser has a six-week period to pay the first instalment to the vendor.

Title transfer

On completion, the purchaser pays for all the utilities to be connected and establishes all rights in Cyprus. If the property title already exists, both parties proceed to the transfer of title deeds and the new owners pay the balance owed. If the property is new, the title will take up to three years to be issued by the official authority, although the buyer can live in the property during this time. Real estate transfer taxes are paid to the Land Registry and are necessary in order to transfer freehold ownership to the purchaser.

Non-Cypriot citizens require permission from the Council of Ministers to purchase property in Cyprus. This normally takes from eight to 14 months and the purchaser can buy the property and live in it while waiting for the approval.

Costs and taxes

The taxes and costs of purchasing a property in the Republic of Cyprus are likely to amount to approximately 3 – 9% of the value of the property. The following is a guide to these costs:

• Transfer tax – 3% for properties with a value up to CY£50,000; 5% between CY£50,001 and CY£100,000; and 8% for CY£100,001 and over
• Legal fees – 0.1 – 1% of property value
• Stamp duty – rate of 0.15% per CY£1,000 up to the value of CY£100,000, beyond which the rate is 2%

North Cyprus

Freehold property

The process of purchasing property in the north of Cyprus depends on what sort of deed the property holds. The process for purchasing a freehold property will start with the terms of sale being set out in an original contract which is then signed by both parties. The buyer will often put down a deposit of around 10% at this stage.

Applying for permission

Permission is required from the Council of Ministers for purchase and the buyer’s solicitor will apply for this. On receipt of the permit, the buyer will make the rest of the payment for the property. If the property is bought off plan and the permit is granted before completion, the buyer will often retain around 5 – 10% of the value until completion, for their own security. When full payment has been made, the title deeds are transferred.

Purchase from a foreigner

The process of purchasing from a non-Cypriot seller is simpler, since the Council of Ministers’ checks have already been conducted. Therefore, once the original contract has been signed by both parties, the full amount is paid (or 90 – 95%, if the purchase is off plan, with the remainder paid on completion) and the title deed is signed over.

Leasehold property

If the purchase is of a leasehold property, the buyer will follow a similar process to that of the freehold purchase. However, the buyer will apply for a permit to the Ministry of Tourism rather than the Council of Ministers. This can be done directly or through a solicitor.

Ministry of Tourism permit

Once the original contract has been signed by both parties, the buyer will apply to the Ministry for a transfer of the lease. They will pay a 10% deposit which is held by a third party, and if permission is granted then the deposit will go to the seller, the remainder can be paid and the lease transferred.

Costs and taxes

The costs and taxes of purchasing a property in the north of Cyprus may differ according to circumstances. The following is a guide to these costs:

• Stamp duty – payable at 6% of the property’s value according to the Land Registry (this may be different to the price paid for the property)
• VAT – to be paid at 5% on professional new developments
• Application for building permission – if required, payable at 2.5%
• Purchase permit application – if required, will cost around CY£1,000
• Contract of transfer – if required, will cost around CY£600
  

Related items

Documents and Reports

	Cyprus property investment report (373Kb)
	Cyprus country guide (766Kb)
	Cyprus property buying guide (979Kb)
Documents and Reports

Other related pages

Bookmark with:	What are these?
DeliciousDiggredditFacebookStumbleUpon