Buying property in Cyprus: what everyone shoud know

The process of buying a property in Cyprus is quite simple. Due to simplified regulations the purchase of real estate is allowed to citizens of any state, without any extra paperwork. Therefore, buying cheap property in Cyprus is very real: you will not have to pay huge fees and taxes; the final cost of an apartment or villa will increase by only a few percent of the declared price.

Purchase procedure

Buying property is a several-step procedure:

1. Choosing a property. It is very important to use the services of a reliable real estate agency, in that case you will be able to purchase new or resale properties in Cyprus at “members only” prices, and not “for strangers”. Competent experts have information about the real estate market in the country and know the real price of each object.
2. Opening a bank account in Cyprus. A customer will only need a passport and  filled application form. Account is required for transferring funds to the seller.
3. Signing a preliminary agreement with the owner. This document serves as a guarantee for the owner that the deal is not going to fall through while gathering the documents and composing the main contract. The preliminary contract specifies the amount of the deposit (usually 5-10% of the value of the property), the date of signing the main agreement. The deposit is non-refundable upon cancellation of the deal.
4. Signing the main agreement. Once the agreement with the owner is signed, the buyer   deposits another 30% of the property value.
5. Paying of taxes and fees. In total, you will have to pay two duties: stamp duty and registration tax. The table below provides information on the amount of fees and tax rate.
6. Submitting an application for approval of the purchase and passport to the Council of Ministers of the Republic of Cyprus.
7. Submitting of documents to the District Land Office, where the transaction will be registered. These actions prevent owner from illegal resale to third parties.
8. Paying of the remaining amount.

Fees to be paid

Regarding the title fee and registration tax: it’s worth noting that purchasing luxury properties is way more expensive. The government collects taxes based on the value of real estate.

The table below specifies tax rates depending on value of property:

Today 50% discount for registration of real estate is applicable.

Now you can easily calculate total cost of an apartment or villa in Cyprus, including fees and taxes. Should you have any questions, don’t hesitate to contact us by phone – and our experts will help you clarify the nuances of buying properties in Cyprus.