Buying a property in Cyprus includes a number of additional property purchase costs and services including realtors’ and lawyers’ fees and stamp duty. The question is, how high are these costs and how easy is it the property purchase process in the island?
Foreigners looking to invest in property in Cyprus are only able to purchase one home, and although they can hold land freehold the maximum limit on land ownership is 4,014 square meters. Prior to purchasing the property, non-Cypriot buyers are required to obtain a permit to register a property from the government. Using a lawyer to acquire this permit greatly facilitates the process.
Once the permit is obtained, the buyer can begin to make offers on potential properties. Upon the acceptance of an offer by the seller, the buyer is required to make a nominal deposit which is binding in order to ensure a higher offer does not succeed in acquiring the property.
The next step in the purchasing process is the drawing up and subsequent signing of the contract, following which, the buyer will usually pay around 20% to 30% of the total value of the house or apartment. The rest of the amount is payable according to the terms of the contract. After signing the contract the buyer has two months in which to deposit the official documents at the land registry.
Foreign buyers must also go through the application process at the Council of Ministers to acquire immovable property. The council requires bank references and criminal records from the buyer, as well as information regarding the size of the land and a statement declaring that the property is the only one that he or she will hold in the country.
This whole process can take up to one year, however once the procedure is complete, the buyer has no limitations or restrictions on using the property.
