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Cyprus (Buying Process)

Non-Cypriot citizens are permitted to acquire one of the following: an apartment or house or a building plot of land up to three donums (4,014m2). Offshore entities may also acquire premises for their business (with restrictions) or as a residence for their non-Cypriot employees, provided the residence is registered in the employee’s name. These restrictions on the acquisition of property will be lifted for EU citizens from 2009. We offer a friendly complimentary consultation service on all of these points, without obligation.

Many clients prefer outright payment of their property, but it’s good to know that financing is available, if required. The most commonly used financing options in Cyprus and abroad are as follows:

1. Mortgage or loan in your home country
If you own a property in your home country, equity can be released by way of arranging a mortgage or loan against this. This service is provided directly by most UK banks and building societies, or you can seek advice from an independent mortgage adviser.

2. Loan in Cyprus
If you prefer to arrange for financing in Cyprus, as a large and reputable property developer, we can assist you in obtaining a bank loan on the best available terms. Loans in Cyprus are usually given for up to around 70% of the property value. Repayment periods range from around 10 to 20 years, depending on the currency of the loan. As most property in Cyprus is currently sold off-plan, we provide the bank guarantee required as collateral with the cost being borne by the purchaser.

SELECT AND RESERVE YOUR PROPERTY

f you have set your heart on a particular property, you can fix the purchase price and take the property off the market for a reservation fee of CYP 1,000-2,000. If you change your mind within 30 days, as part of our flexible client service, reservation fees are transferable for a period of 1 year to another property, or to another family member for the same or another property. When you proceed with your purchase, the reservation fee is, of course, deductible from the purchase price.

Due to the high demand for property in Cyprus, most properties coming onto the market are currently purchased off-plan. Following receipt of the reservation fee on the property of your choice, our standard payment terms are payment of a 30% deposit within 30 days of signing the contract of sale. The remaining stage payments are due between the date of contract signature and completion of your property. We are flexible on the schedule of stage payments, taking individual client requirements into account.

For your peace of mind and to ensure you are absolutely happy, we furthermore agree on a considerable final payment instalment upon completion and delivery of your new property to you.

SOLICITOR’S FEE

We always recommend our clients to take independent legal advice from a local English speaking lawyer, familiar with assisting non-Cypriots in purchasing property in Cyprus. Solicitor’s fees are around 1% of the property purchase price and we can refer you to a number of reputable lawyers in Cyprus to represent your interests.

CONTRACT OF SALE

The Cypriot legal system is based on the British one. All contracts of sale are private agreements between the vendor and purchaser and must, by law, be in writing. To ensure you understand everything, naturally, we formulate these in plain English.

FILING YOUR CONTRACT OF SALE WITH THE LAND REGISTRY

To protect your beneficial rights to property ownership, you must always ensure that your lawyer has filed your contract of sale with the land registry as soon as possible, but no later than 60 days after signing the contract. This filing incurs only a nominal fee, and more importantly ensures that your rights to the property are legally protected by the so-called “specific performance”. Your contract of sale, once held at the land registry, cannot be withdrawn by anyone, and therefore the property cannot be leased, sold, transferred or mortgaged by anyone other than the purchaser from this point on.
Contract Filing Fee CYP 1.00

WHAT HAPPENS BETWEEN CONTRACT SIGNING AND PROPERTY DELIVERY?

APPLICATION TO COUNCIL OF MINISTERS

After the contract of sale has been signed, non-Cypriots are currently still required to submit an application to the Council of Ministers to obtain approval to purchase a property in Cyprus. Your lawyer will complete this application on your behalf, and it is usually a mere formality. It is expected that this regulation will soon be abolished for EU citizens. Your application must be approved prior to transferring the title deed to your name.

PRE-DELIVERY PROPERTY SERVICES

HOME PROGRESS REPORT

During this period your customer care administrator will keep you updated on all matters relating to your property. We can send you photos, either in the post or by e-mail, so you can see how construction of your property is progressing.

HOME SERVICES

We inform you about a wide range of property services exclusively available to you as a homeowner. These include interior design, home furnishings, gardening and property management, to name but a few.

TECHNICAL PROPERTY SERVICES

If interior fixtures and finishes such as tiles, bathroom suites and accessories have not yet been installed in your property when you purchase, we give you the opportunity to make a selection according to your personal preferences.

TRANSFER OF CONTRACTUAL INSTALMENTS

To protect you against foreign exchange rate fluctuations that may work against you until the final payment is due, we can refer you to foreign currency brokers who can help you eliminate the risk. In this way, you can precisely plan the amounts you need to have available, and thus enjoy complete peace of mind.