Are you an investor, business owner, retiree or expat wondering how to buy real estate in Cyprus?
Whether you are looking for a property investment to get a Cyprus golden visa or you are seeking a new home for your family, an office for your business or a place to retire in Cyprus – buying a property in Cyprus is not difficult. But you should know what to consider and how to proceed.
Whatever your motivation, there are many reasons for living in Cyprus and enjoying the Mediterranean environment. If you are thinking about doing business in Cyprus, take a look at this blog article.
But right here and now, discover how to buy real estate in Cyprus in this week’s blog article by Immigration Explorer, your top agency for residency and citizenship planning.
Living in Cyprus
The golden Cyprus beaches are only one of the countless reasons to move to Cyprus. These Cyprus facts will show you how living in Cyprus will make your life better.
From ancient history to cosmopolitan cities – Cyprus, the Jewel of the Mediterranean, has got it all! The great location in the EU and the island’s cultural heritage will convince you. The sunny weather, fresh air, and unspoiled forests and nature will revitalize you.
Enjoy the relaxed lifestyle and delicious foods together with the affordable cost of living. The excellent healthcare system on European standards and the high safety make Cyprus even more attractive.
If you are considering a Cyprus company registration, you will be happy to hear that the country offers favorable tax and financial regulations for business owners.
The majority of properties in Cyprus are new, specifically for investment opportunities.
How to Buy Real Estate in Cyprus
Whether for the Cyprus golden visa, retirement or a holiday home, the real estate market in Cyprus offers many opportunities for investment for both residential homes and commercial properties.
Make your life easy with this straightforward step by step guide.
1. Find a suitable property for sale in Cyprus
Overseas property purchasers are typically interested in the districts of Paphos in the west, Limassol in the south, and Larnaca in the east. Whether you love the beach or exciting city life – Cyprus caters to all your individual needs from business to leisure, expat community, and family. Immigration Explorer can connect you to the top real estate agents in Cyprus.
UPDATE: Effective since 24 March 2021
Bank & Deposit
- There is NO LONGER a bank deposit required (formerly ~36,000 USD/30,000 EUR).
- It is NO LONGER necessary to open a Cypriot bank account.
Real Estate Investment
- The real estate investment can now also be made with SECOND-HAND commercial properties (not residential), in addition to new properties from developers. This is a big advantage as it increases opportunities for investors.
- The RESTRICTION of maximum two properties for investment has been LIFTED for second-hand commercial properties (residential remains at maximum two).
- Residential and commercial investments may NOT BE COMBINDED.
Alternative Investment Options
- Investment of the required ~369,000 USD (305,000€) in the share capital of an active Cyprus Company with a physical presence and at least 5 personnel registered in Cyprus.
- Investment of the required ~369,000 USD (305,000€) in a fund approved by CySEC.
2. Buy your New Cyprus Home
Once you have found your dream home and your price offer has been accepted by the seller, he/she may ask you to sign a reservation agreement. This is not legally binding but proves your commitment to buy and vice versa. Together with this, a small holding deposit is usually required. Remember to get a receipt for this.
Next, you or your lawyer should check to make sure that the property is free from any mortgages. At the same time, you or your lawyer should carry out a title search to make sure that the seller is the legal owner of the property with the right to sell it, including the title deeds.
If there are no issues, you are ready to sign the contract. Typically, the seller will prepare the contract. As with any legal document, read the contract carefully and make sure that all the points that you and the seller discussed and agreed upon are written down.
Once both parties sign the sales contract, you or your lawyer should register it with the District Land Registry Office. This prevents the seller from remortgaging the property or selling it to someone else until the title deeds are issued. As a non-Cypriot, you will have to apply for a permit from the Council of Ministers. Keep in mind that this can take some time.
Now you are ready to pay the agreed price for your new property as stated in the contract. Make sure to subtract any down payment you made.
Finally, you will receive the title deeds. If the title deeds are ready, pay the transfer fee to the Land Registry and you have completed your property purchase. Sometimes, it may take a while for the title deeds to be ready. However, this is not a problem. You can still live in your new property while you wait.
If you have enough money in your bank account to buy your home in Cyprus, simply proceed to the next step.
If you need to take a mortgage, don’t worry! Even non-residents of Cyprus are permitted to take a loan from a Cypriot bank. Keep in mind that it is a good practice to borrow in the same currency you will repay the loan in. This avoids currency fluctuations working against you.
4. Pay taxes
- In special cases = Tax exempt
- If you live in the property = 5% on the first 200m² and 19% on further m²
- Commercial use or if you rent out the property = 19%
- Transfer fees (title deeds)
- Up to 85,430 Euros = 3%
- 85,430 – 170,860.14 Euros = 5%
- Above 170,860.14 Euros = 8%
- Stamp duties
- Up to 170,860.14 Euros = 0.15%
- For everything above 170,860.14 Euros = 0.20%
- Legal fee
- This is only applicable, in case you hire a lawyer to help you with the paperwork and legal procedure. This typically costs 0.10% – 1%.
5. Relocation to Cyprus
Move into your new home and enjoy living in Cyprus as an expat or retiring in Cyprus.
Rent your new investment property and benefit from the monthly rent payments, which you receive as an investor. Note that in this case, 19% VAT applies (for all properties built after 2004).
Non-EU passport holders can also rent out their property. The VAT plays an important role here. If you only pay 5% VAT on your property, you cannot rent it. However, if you pay the full 19%, you may rent your property even as an investor.
Now you know how to buy property in Cyprus in a few simple steps. Whether you are thinking of a Cyprus company setup (for example a Cyprus Ltd), emigrating to Cyprus – living on this island will improve your life.
Insider Tips for Buying Real Estate in Cyprus
- apply for permission from the Council of Ministers to purchase a home, if you are an expat. Approval is given in most cases but can take some time.
- consider hiring a lawyer to help you with the paperwork and the legal process
- consider hiring a surveyor, who can conduct a professional inspection of the property for any hidden damages
- check that the land of the home, which you are planning to buy, is mortgage-free and has title deeds
- keep the timeframe given by the Cypriot law, during which the Contract of Sale must be deposited and stamped by the Land Registry
- double-check that the exchange rate is correct, if you are paying in a different currency
- pay your taxes. An Immovable Property Tax (IPT) applies to anyone who owns property in Cyprus, regardless of status.
- consider getting home insurance. Depending on the use of your property and/or if you are away from your new home for a significant amount of time per year, property insurance can help you to mitigate costs from unforeseen circumstances.
Cyprus Real Estate – The Takeaway
You are now an expert on how to buy real estate in Cyprus – from selecting the perfect location for your personal needs to finding the ideal Cyprus properties for sale, obtaining the title deeds, and paying the necessary taxes.