BUYING PROCESS – CYPRUS
The legalities of purchasing a property in Cyprus are extremely straightforward and wholly safeguard the purchaser’s rights. Damatt Property has broken down the complete purchase process into ten simple steps. This is to provide a comprehensive overview of all the stages you’ll go through. If our Partners provide progress updates and photos, these are sent on to you. This ensures our clients are always aware and fully informed about the status of their investment.
The purchasing process is now simpler than ever!
FINANCING YOUR CYPRUS PROPERTY PURCHASE
Property financing options in Cyprus include:
Mortgages or loans
Our Partners credit control executives can help you choose the financing option best suited to you.
SELECT & RESERVE YOUR CYPRUS PROPERTY
The first stage of purchasing an off-plan property entails payment of a reservation fee. A nominal deposit of €2,000 is required to reserve a property with a purchase value under €500,000. A deposit of €4,000 is required to reserve a property with a purchase value greater than €500,000. Reservation fees are transferable to another property or family member for a period of one year.
Damatt Property recommends that clients take independent legal advice from a local lawyer. There a number of reputable lawyers in Cyprus. The British Embassy produce a list of English speaking lawyers in Cyprus.
CYPRUS PROPERTY CONTRACT OF SALE
The Cypriot legal system is British based. All contracts of sale are private agreements between the vendor and purchaser and must by law, be in writing. Pafilia prepares all contracts of sale in English and it is a language recognized by the government authorities
FILING YOUR CYPRUS PROPERTY CONTRACT OF SALE WITH THE LAND REGISTRY
Once you have signed your contract of sale, your lawyer should file this with the Land Registry within 180 days. This is termed “Specific Performance’ and ensures your beneficial rights to property ownership are legally protected. Once filed, your contract of sale cannot be withdrawn by anyone other than yourself. This meaning that your property cannot be leased, sold, transferred or mortgaged without your consent.
CYPRUS PROPERTY STAMP DUTY
This is a one off payment borne by the purchaser and is payable to any Taxation Office of the Republic. Your lawyer can make the payment on your behalf. This is due within 30 days of signing the contract.
Property Value Stamp Duty
Up to €5,000 0%
€5,001 – €170,000 0.15%
€170,001 & above 0.20% (with a maximum stamp duty amount of €20,000)
CYPRUS PROPERTY TRANSFER FEES
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry office will charge transfer fees.
These are based on the market value of the property at the time of purchase and are calculated as follows:
Up to €85,000 3%
€85,000 – €170,000 5%
Over €170,000 8%
There is currently a transfer fee incentive scheme in place until 31st December 2016.
The changes apply to, where the contract is dated and deposited at the Land Registry before this date. Specifically: Applicable between 02.12.2011 and 31.12.16
For those who pay VAT on their house purchase, property transfer fees are waived.
For those who do not pay VAT on their purchase, property transfer fees are reduced by 50%.
Property Transfer Fees become payable after the issuance of title deeds, when the property is transferred to the purchasers name.