{"id":2652729,"date":"2021-11-16T14:05:50","date_gmt":"2021-11-16T12:05:50","guid":{"rendered":"https:\/\/buyhome.com\/?p=2652729"},"modified":"2021-11-16T14:21:24","modified_gmt":"2021-11-16T12:21:24","slug":"buying-property-in-cyprus-as-a-foreigner","status":"publish","type":"post","link":"https:\/\/buyhome.com\/buying-property-in-cyprus-as-a-foreigner\/","title":{"rendered":"Buying property in Cyprus as a foreigner"},"content":{"rendered":"\n

The allure of Cyprus\u2019 Mediterranean climate and golden beaches makes it an attractive second home for Brits – whether you\u2019re looking for a place to spend long summer breaks, or\u00a0retire to Cyprus.<\/p>\n\n\n\n

Buying property in Cyprus does require careful planning to make sure it goes smoothly and any potential pitfalls are avoided. Our complete guide to buying property in Cyprus is here to help. It covers everything you need to know about the property market, mortgages and fees, as well as the buying process itself.<\/p>\n\n\n\n

We\u2019ll even look at some of the most attractive locations on the island which you could be calling home, but we\u2019ll also touch on the best ways to cover overseas property costs.\u00a0We hope that this guide will prove a useful starting place when considering Cyprus for your dream property purchase.<\/p>\n\n\n\n

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What\u2019s the property market like in Cyprus?<\/strong><\/h2>\n\n\n\n

Cyprus\u2019 property market is split between two key areas – the urban centres of Nicosia, Limassol and Larnaca, and the coastal resort areas of Paphos and Famagusta, which see particular demand from expats looking to soak up the sun.<\/p>\n\n\n\n

Up until 2020, the market was faring much better than it had in a long time, following 3 years of significant improvement. However, the country\u2019s economy has been hit hard by the Covid-19 pandemic, which has had a knock-on effect on the property market.<\/p>\n\n\n\n

And, according to Deloitte\u2019s February 2021 – Cyprus Real Estate Market Report, in 2020 total contracts of sales were considerably lower at 7,968 compared to 10,366 in 2019, a reduction of 23%.<\/p>\n\n\n\n

This has affected both supply and demand for housing on the island. But, prospective foreign buyers should take heart – the report points out apartment prices are stable, appear to be least affected by the pandemic, and are expected to recover first\u00b2.<\/p>\n\n\n\n

Whilst things are still uncertain, experts consulted in the Cyprus Real Estate Pulse survey (December 2020) say access to financing, market confidence, foreign travel and investment are likely to be big factors in the short term Cyprus property market performance and recuperation.<\/p>\n\n\n\n

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Can foreigners buy property in Cyprus?<\/strong><\/h2>\n\n\n\n

In short – yes, foreigners are able to purchase property in Cyprus. What\u2019s more, it\u2019s easier to do so here when compared with many European countries.<\/p>\n\n\n\n

EU citizens are able to purchase property in Cyprus with no restrictions. For UK nationals, it\u2019s still possible, but the rules have changed slightly since the UK left the EU.<\/p>\n\n\n\n

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Buying property in Cyprus after Brexit.<\/strong><\/h2>\n\n\n\n

UK nationals may buy one property in Cyprus and are entitled to hold the freehold. The property can be either an apartment, house, villa on a building site or plot of land limited to no more than 4,014 sq. m.<\/p>\n\n\n\n

In some instances, the purchase of a second property (such as a holiday home) may be allowed. UK nationals looking to buy property in Cyprus also need to be aware that following Brexit they can only stay for a total of 90 days in any 180 day period. If you wish to stay for longer then you\u2019ll need to apply for a visa.<\/p>\n\n\n\n

Importantly, the process to purchase is now different for post-Brexit buyers. When entering into a sale, you\u2019ll need to\u00a0apply to the Council of Ministers\u00a0for permission to purchase a property and title deeds won\u2019t be passed to you until permission is granted. While it\u2019s a formality and highly unlikely your application will be refused, you\u2019ll also need a clause included in the contract to outline what should happen if permission isn\u2019t granted.<\/p>\n\n\n\n

It\u2019s not uncommon for the application to take several months to a year to finalise. You also won\u2019t be permitted to rent or lease property, acquire a share in a property and unmarried couples can\u2019t buy a property in joint names.<\/p>\n\n\n\n

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How to buy property in Cyprus as a foreigner – a step-by-step guide<\/strong><\/h2>\n\n\n\n

The steps to purchase property are fairly similar to those in the UK, but with a few differences. We\u2019ve outlined the key steps below:<\/p>\n\n\n\n

  1. Arrange your mortgage\u00a0– If you\u2019re not a cash buyer, look into mortgages and loans first, to work out how much banks will be willing to lend you before you get started.<\/li>
  2. Appoint a local lawyer\u00a0– check that they\u2019re independent from the developer\/vendor and estate agent involved in the sale, to make sure your interests are looked after.<\/li>
  3. Start your property search\u00a0– websites, property portals, real estate agencies<\/li>
  4. Once you\u2019ve found a property, it\u2019s important to\u00a0visit in person\u00a0to check that the condition matches your expectations.<\/li>
  5. Make your offer\u00a0– once you\u2019re happy with the property you\u2019ve found, make an offer through the estate agent.<\/li>
  6. Apply in writing to the Council of Ministers for permission to purchase the property.<\/li>
  7. Sign the sale contract, which will also be signed by the vendor.<\/li>
  8. Transfer the funds.<\/li>
  9. Complete the sale\u00a0– the property will be registered in your name once permissions have been granted and funds certified.<\/li><\/ol>\n\n\n\n
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    How to avoid potential pitfalls when buying a property in Cyprus?<\/strong><\/h2>\n\n\n\n

    There are some things to look out for during the property buying process and actions to take to help you avoid pitfalls.<\/p>\n\n\n\n

    1. Frequently, developers will take out a mortgage on land or property\u2070, for which you\u2019d become liable in the event they become bankrupt, and you\u2019ve signed a contract to purchase it. Appoint an independent lawyer to check no mortgages have been placed on the land prior to purchase, which will ensure you don\u2019t encounter difficulties at a later date. Ask your lawyer to obtain a Land Search Certificate from the Land Registry.<\/li>
    2. Be aware that buying property in the north of Cyprus comes with some risk. Ownership of property is often disputed in the north due to claims of ownership arising from people displaced in 1974. Purchasing such property could result in legal proceedings. Therefore, if you\u2019re keen to buy in the north of the island, it\u2019s a good idea to rent first and get to know the local market. A good lawyer should also help you obtain a property with the right type of indisputable deeds.<\/li><\/ol>\n\n\n\n
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      How do I get a bank loan\/mortgage in Cyprus?<\/strong><\/h2>\n\n\n\n

      If you need a mortgage to help you buy a property in Cyprus, the good news is that it\u2019s possible to get a Cypriot bank to lend to you. However, it\u2019s also associated with a level of risk (particularly property in north Cyprus) so you\u2019ll need a good, international mortgage broker, who can find you the best mortgage for your circumstances.<\/p>\n\n\n\n

      When you\u2019re ready to apply, you should expect to have to prove you\u2019re a low-risk borrower. Be prepared to show your passport as proof of ID. You\u2019ll also need to provide proof of income in the form of recent payslips, personal bank statements or audited accounts if you\u2019re self-employed. You\u2019ll also need proof of any other savings including shares, bonds and pension funds, for instance. The lender will then need to obtain a property valuation report.<\/p>\n\n\n\n

      Your mortgage application can be approved when the lender finds everything is in order with your finances and the property in question. Once approved, you\u2019ll let your lender know the completion date for the funds to be released.<\/p>\n\n\n\n

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      What kind of taxes and fees will I need to pay?<\/strong><\/h2>\n\n\n\n

      To budget accurately for your purchase, keep these additional fees in mind:<\/p>\n\n\n\n