Buying Property in Cyprus

• Research and budget: Begin by researching property listings and deciding your budget. Consider factors such as location, property type, and additional costs (e.g., legal fees, taxes).
• Engage a developer: A reputable developer can provide invaluable assistance in navigating the local market, identifying suitable properties, and negotiating terms.
• Legal assistance: Hire an independent lawyer who specialises in property transactions in Cyprus. They will conduct due diligence, ensuring the property has clear title deeds and is free from encumbrances. If you do not have a lawyer, we can refer you our expert in-house legal advisor or several other well-respected legal professionals.
• Property viewing and selection: Visit properties of interest to assess their condition and suitability. Consider future resale value and potential rental income if applicable. Our sales agents can help you identify a suitable property based on factors like location, property size, proximity to amenities, budget, etc.
• Reservation Agreement: Once you find the right property, you can sign a reservation agreement and pay a reservation fee. This step typically secures the property and takes it off the market.
• Sales Agreement or Contract of Sale: Your lawyer will draft a sales agreement or contract of sale outlining the terms of payment and conditions of the purchase. Once signed, you will pay a deposit (usually 10-30% of the property price). The contract is then stamped and sent to the Land Registry department within a period of 180 days to confirm your ownership.
• VAT: A reduced VAT rate starting at 5% is now applicable for the acquisition of new residential properties. To qualify for this reduced rate, specific conditions must be met: the property must serve as the primary and permanent residence of the applicant for the next ten years; the applicant must not have previously purchased any other residence in Cyprus with a reduced VAT rate; and the applicant must be an individual over 18 years old, thus excluding legal entities.
• Transfer of ownership: Upon completing all legal checks and fulfilling contractual obligations, the final payment is made, and ownership of the property is transferred to you.

One of the significant benefits of buying property in Cyprus is the eligibility to apply for a permanent residency permit through the Cyprus Permanent Residency by Investment Program.

Here’s how you can qualify

Investment requirement: You must invest a minimum of €300,000 (plus VAT) in a property, which can be a house, apartment, or other real estate types.

• Proof of funds: Demonstrate that you have consistent and sufficient income outside Cyprus to support yourself and your dependents. This can include salary, pensions, dividends, or rental income. A minimum annual income of €50,000 transferred from abroad must be evidenced. For each dependent child, the amount increases by €10,000 and for the applicant’s spouse, the amount increases by €15,000.
• Clean criminal record: You and your dependents must have a clean criminal record from your country of residence.
• Medical insurance: Obtain private health insurance coverage in Cyprus for yourself and your family members.

Application Process

• Submit application: Prepare and submit the application along with the required documents to the Civil Registry and Migration Department. Your lawyer can assist with this process.
• Processing time: The application process typically takes 2-3 months. During this time, authorities will review your documentation and conduct necessary background checks.
• Approval: Once approved, you will receive your residency permit, allowing you to live in Cyprus indefinitely. The permit is renewable every five years.

• There is no Inheritance Tax in Cyprus.
• A 20% Capital Gains Tax is imposed on profit earned from a property disposal.
• A rate of 1% – 2% Municipality Tax is payable to your local municipality authority, calculated on the value of your property as at 1 January 2013.
• Property transfer fees for the transfer of immovable property are calculated as follows:

• Stamp duty fees are calculated as follows:

Buying property in Cyprus is not just an investment in real estate; it’s an investment in a lifestyle marked by beauty, stability, and opportunity. With the added advantage of obtaining permanent residency, Cyprus stands out as an ideal destination for those looking to secure a future in one of the Mediterranean’s most inviting locales. Whether you’re drawn by the prospect of sunny days, rich history, or economic opportunities, Cyprus offers a welcoming environment for all.