The buying process in Cyprus

Here’s a quick guide to the process. At the appropriate time, we can discuss any aspect of this in detail with you.

In this section, we'll talk about:

The Reservation Deposit

Choosing Your Lawyer

Searches, Checks and Diligence

Private Purchase Contract

Stage Payments

Completion

Taxes and Fees

Reservation Deposit

Once you’ve found your dream home in the sun, you pay a reservation deposit of typically 3,000€ to 5,000€. This fixes the price that you will pay and removes the property from the open market.

Choosing a Lawyer

You need to appoint a lawyer and it's important that you use one who understands Cypriot conveyancing law. They should also be fluent in both English and Greek. We can introduce you to several if you don't have one sorted out yourself.

Searches and Checks

Your lawyer has 28 days to undertake all the necessary searches, legal checks and to agree/draw up a contract. This includes searches/checks at the local municipality to check the title and building consents, checks to ensure the property is free of debt and encumbrances, etc.

Your lawyer will explain everything about the contract and the results of the checks and searches they've done to safeguard your investment.

Private Purchase Contract

Four weeks after lodging your reservation deposit, and having signed the purchase contract, you pay (usually) 30% of the purchase price as your first stage payment.

They will make sure you understand what you will have to pay and when each payment becomes due. (Contracts will normally be prepared in English.)

With completed or resale properties, completion is normally targeted for 28 days' time but, by agreement, this can be shorter or longer. You'll pay the remaining balance on completion.

With properties that are still to be constructed, a further 50% will be paid in stage payments and this will be agreed with the builder. The final balance due is due on completion.

Completion

Completion takes place in the notary's office and both the buyer and seller must be present. However, if you prefer, you can give your lawyer power of attorney, so that he can complete and sign the paperwork on your behalf.

Following completion, a title deed for the property will be issued in your name. For EU citizens this is straightforward but for citizens of other countries, your lawyer will have to apply for the Council of Ministers’ consent before the deeds are issued. This is a formality but it can take some months. We recommend you discuss this with your lawyer early on.

Don’t forget, too, that it would be prudent to make sure you have adequate building and contents insurance cover in place ready for when you take legal possession. And, if you have a mortgage, organise life assurance, too.

Whether you buy a detached property or, say, an apartment, the property will be freehold. You will own the property and the land it stands on – or a share of the land it stands on for apartments, townhouses, etc.

Stage Payments

Briefly here are the stage payments;

Reservation Deposit - typically 3,000€ to 5,000€ to secure your property
First Stage Payment - (say 30%) paid after 30 days
Further Stage Payments - As agreed with the constructor.
The Balance - often 10% to 20% (plus fees, taxes) on completion

Fees and Taxes

Our property prices are quoted excluding VAT - 15%.

Lawyers Fees are typically 1,500€

Stamp Duty is payable too - it’s set at first 170,860€ - 0.15% and above that figure 0.20% on the balance.

Property Transfer Tax is payable to the government when the deed is issued. The amount due is based on the current valuation and is calculated as follows:

0 to 85,430€ - 3%
85,431€ to 170,860€ - 5%
170,861€ and over - 8%

Annual Property Tax based on valuation:

Up to 170,860€ - zero due.
170,861€ and up to 427,150€ - 2.5%
427,151€ up to 854,300€ - 3.5%
854,301€ or more - 4.0%

Side note – talk to your lawyer about revising or making a new will. Foreign property ownership, a possible change of domicile and different laws on succession may have implications for you and your descendants. You could potentially need two wills, one for Cyprus and one for assets elsewhere.