Head of real estate and commercial law practice
Specialist in the field of commercial law and process. Real estate, construction support; land law and protection of property ownership.
Support for the purchase of real estate (apartment, house) in Cyprus
Buying real estate in Cyprus has a number of features for foreign citizens. As a rule, foreigners can get residential real estate here without any obstacles, which cannot be said about land plots under houses. It is possible to buy an apartment or a house, both on the primary (from the developer) and on the secondary market (from the first buyer). For buying housing in Cyprus, it is possible to receive additional benefits for the person – a permanent residence permit (based on investments of more than 300,000 euros). More about the procedure for buying and selling real estate in this country – we will consider in this article.
Buying an apartment or a house in Cyprus by a foreigner: what are the features?
The purchase of real estate in (Northern) Cyprus is subject to certain restrictions for non-EU citizens. They can only purchase property with a total area of up to 4014 sq. m. As part of the entire procedure, foreigners will also be required to conclude a reservation agreement (recording the intentions of the parties). The duration of the purchase itself will depend on the identity of the seller, the type of property and the region, respectively.
Choosing real estate in Cyprus: what are the most affordable areas?
The Cypriot real estate market offers a variety of options depending on the client’s request. The most affordable options for Ukrainians today remain:
- Limassol (one of the hot spots for tourists),
- Paphos,
- Larnaca (offers lower prices compared to others),
- Famagusta.
The above-mentioned regions offer foreigners both apartments in apartment complexes and more comfortable townhouses and villas. It is also possible to purchase individual private houses in one of the country’s gated complexes.
Buying housing (apartment, house) in Cyprus: what does the whole procedure consist of?
The procedure for buying and selling real estate in Cyprus is multi-stage and consists of the following steps:
- Step one – choosing a property. The buyer can quickly choose a property with the help of a lawyer, who will additionally take on all the work of sending an offer to the seller and concluding a reservation agreement and making a deposit of more than 1,500 euros;
- step two — legal due diligence of the deal and the seller. The lawyer must conduct a thorough check of the seller’s or developer’s documents (certificates of ownership, building permits), the absence of encumbrances (seizures, mortgages, pledges), the status of the land plot and other nuances;
- step three — obtaining permission to purchase housing from the Council of Ministers (for all persons who are not citizens of EU member states);
- step four — going through the process of drawing up the agreement and registering the ownership. As a rule, signing the agreement and paying for the property takes place in two stages (excluding signing the reservation agreement) – paying the first installment of 30-35% of the cost and the remaining funds after obtaining permission from the Council of Ministers and entering the agreement into the land cadastre. The logical conclusion of the whole process will be obtaining a certificate of ownership.
What taxes will be taken into account when calculating housing in Cyprus?
At the stage of registration of the transaction, the person is also charged mandatory taxes and fees. These include:
- first, value added tax (19%, or 5% for the first 130 sq. m. provided that the buyer meets the criteria established by law and is buying housing for the first time);
- second, a fee for the transfer of ownership (depends on the value of the property);
- third, a stamp duty for the registration of the contract (1-2 euros for every 1000 euros of value);
- finally, a real estate expert’s commission – on average up to 5%.
How will legal support for the purchase of real estate in Cyprus from our specialists be useful to you?
The lawyers of the company “Prikhodko and Partners” will ensure the legality of the transaction for the purchase and sale of housing in Cyprus, simplifying the entire procedure as much as possible. Given their practical experience and qualifications, they can provide you with the following services:
- a comprehensive legal check of the object and the seller;
- checking the availability of all necessary permits for the construction of an apartment in a new building;
- development and analysis of the purchase and sale agreement (reservation and main);
- filing an application for permission from the Council of Ministers in Cyprus;
- consulting on taxes and the application of benefits when purchasing housing;
- assistance in opening a current account in a Cypriot bank;
- support in registering ownership of an apartment and a house.
Summing up, the purchase of real estate in Cyprus is available to Ukrainians provided that permission is obtained from the Council of Ministers and the entire procedure is correctly completed. It requires a thorough legal check and registration of tax payments, entry of information into the land cadastre. For the success of buying and selling an apartment or house in Cyprus, we recommend ordering full legal support for the preparation, registration and registration of the transaction.
Do you have any questions? We offer to get a consultation and find out the cost of legal support for a real estate purchase transaction (apartment, house) in Cyprus by filling out the form below.
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Do you want to buy an apartment/house in Cyprus?
2 question
Do you need help finding accommodation in Cyprus?
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Are you interested in drafting a purchase and sale agreement for an apartment in Cyprus?
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