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Whether you are deciding to purchase for investment, relocate to Cyprus, or acquire Permanent Residency through the purchase of real estate, careful and considerate planning is essential to ensure that you choose the right property for the right reasons.
After selecting a property, you should sign a reservation agreement. The final price, along with other conditions of purchase, will be agreed upon. All terms will be included in the reservation agreement. A deposit will then be required to withdraw the property from the market.
The buyer is advised to open an account in a Cyprus bank for making payments to the seller (Developer).
The contract of sale will be prepared by a lawyer experienced in property matters. The lawyer will act on behalf of the buyer and will study the property from a legal perspective. They will conduct their own searches on the property to ensure it is free from mortgages and encumbrances before proceeding with the contract.
The purchaser and the buyer sign a contract of sale. Upon signing the contract the lawyer applies to the Council of Ministers to obtain a permit to purchase the property.
Once both parties have signed the contract of sale, it must be stamped and deposited at the Land Registry Office within 180 days. This secures the buyer’s ownership rights until a separate title deed is issued.
We will keep you informed of the progress of the property until completion. Approximately one month before your property is completed, we will send you a notice. Once we receive the final payment for the property, we will arrange the delivery. If you have purchased a completed property with us, delivery will be arranged as soon as the full payment is received in our account.
Under the Cyprus Immovable Property Tax Laws, all property owners are liable to pay an annual tax based on the total value of all immovable property registered in their name.
Upon signing the contract, the purchaser is liable to pay stamp duty at the rate of 0.151% for properties worth up to 170,000, and at the rate of 0.201% for properties worth more.
Newly erected building (and the associated land) are subject to the V.A.T. RATE of 19%. The transfer of land on its own and used buildings are not subject to V.A.T.
Since 8th of June 2012, a reduced VAT rate of 5% is applied on the purchase or construction of a house or flat to be used as a main residence, provided the area of the property does not exceed 200 sq.m. If the area of the property exceeds 200 sq.m, then the reduced rate of 5% applies to the first 200 sq.m, and the remainder of the sq.m is subject to 19% VAT.
No transfer fees will be payable when the property to be transferred is subject to VAT. If the property is not subject to VAT, transfer fees will be reduced by 50%.
This is valid as long as the sales contract was issued and submitted to the Land Registry Office within the specified period.
Value of Property | Transfer Fee Rate |
Up to 85,000€ | 3% |
From 85,001 – 170,000€ | 5% |
Over – 170,000€ | 8 % |
