Looking to expand your overseas property invest portfolio?

Buying Procedure

A Reservation fee of CYP £2,000 is submitted to the developer to reserve the relevant property and fix the price. This reservation fee is typically non-refundable.

The Contract of Sale is then completed and signed and the 30% initial stage payment is made to the developer through your lawyer. It is highly recommended that you use the services of a Cypriot based lawyer; we typically introduce clients to our lawyer who is based in Paphos, speaks excellent English, offers very competitive rates and is totally independent of the property developers.

Stamp duty (which is very low compared with the UK) is then due on the property as follows:

» Up to CYP£ 100,000 0.15% (CY£1.50 per 1000)
» Over CYP£ 100,000 0.2% (CY£2.00 per 1000)

For example:

Purchase Price of CYP£ 150,000
Up to CYP£ 100,000 CY£ 150
CYP £100,001-150,000 CY£ 100
Total Stamp Duty CY£ 250

Specific Performance
The contract, once duly signed and stamped, must be deposited at the Land Registry. This is done by your lawyer. This measure ensures that the developer performs as per the contract and also prevents the property from being resold to anyone else, hence safeguarding the buyer until completion of the property.

The Council of Minister's Application
As a foreigner you have to apply to the Council of Ministers to purchase a property in Cyprus. This should be applied for by your lawyer and is a formality.

Stage Payments
Staged payments are made throughout the build of the development and are typically as shown below:

¤ 30% on contract exchange which is typically within 30 days from depositing the reservation fee.
¤ 20% of the selling price with the commencement of the skeleton.
¤ 20% of the selling price on completion of the skeleton.
¤ 10% of the selling price on the completion of the brick work and plastering.
¤ 10% of the selling price on completion of the indoor flooring, carpentry and aluminium.
¤ Balance of the selling price (less CYP 1000) on completion
¤ CYP 1000 upon issuance of the Title Deed.

Completion
On completion of the development, the outstanding balance should be paid, either through your own funds or from a mortgage.

Property Transfer fees are necessary to transfer the property to your name as soon as the government authority has issued the Title Deed and the purchase has been settled. The title deeds are typically issue 3 to 4 years after completion of new developments. Please note that the property is registered against your name and that you can legally buy and sell before the title deeds are issued.

Transfer Fees are as follows:

Up to CY£ 50,000 3%
From CY£50,001-100,000 5%
Over CY£ 100,000 8%

For example:

Purchase price of CYP£ 150,000
Up to CYP£ 50,000 CYP£ 1,500
CYP£ 50,001-100,000 CYP£ 2,500
CYP£ 100,001-150,000 CYP£ 4,000
TOTAL CYP£ 8,000