When buying we strongly recommend you to instruct a local lawyer to ensure that all is in order. If dealing with a new development it must be checked that the plot/land is suitable for building purposes, i.e. zoning restrictions, building regulations, access to an official road, availability of water and electricity supply, telephone lines.
In the case of purchase of an apartment or house the lawyer needs to check building planning and other permits, the history, reputation and reliability of a developer and the title to the property.
Property Registration and Government Taxes.
Most properties available in Cyprus are sold freehold. A non-Cypriot is allowed to own one residence in Cyprus, as far as its land does not exceed three donums (4,013 sq. m). Permission to acquire property in Cyprus is granted by the Council
of Minister and easily obtained by foreign nationals of good standing and reputation. The application can be done directly by the buyer or through a lawyer or through a local agent. The stamp duty is also paid by the purchaser and the cost is CYP 1.500 per CYP 1000. The only other expense involved in buying property are the transfer fees which are paid directly by the buyer to the Department of Land and Surveys
on the day of the transfer of the title deed of the property. These are as follows: from CYP 1 to CYP 50,000 - 3%, from CYP 50,000 to CYP 100,000 - 5%, for CYP 100,000 or more - 8%.
The Annual Property Tax.
Is payable only if your property's value exceeds CYP 100,000. For properties
valued at CYP 100,000-250,000 - CYP 2,00 per thousand, for properties valued at CYP 250,000-500,000 - CYP 3,00 per thousand and for properties valued over CYP 500,000 - CYP 3,50 per thousand is payable.
Housing Loan for Non-Resident.
Who can benefit
- Foreign Nationals, whether living in Cyprus or not
- People of Cypriot origin living abroad
- Offshore Companies and Personnel
Characteristics
- It is available in any major currency such as: USD, GBP, JPY, CHF, and EURO
- The loan amount can be maximum 70% of the force sale value of the property
- The interest rate will be LIBOR 3 months plus 2,5%.
Repayment
- The maximum repayment period is 15 years.
- Repayment is in monthly or quarterly installments, commencing one month or
three months after the loan is granted.
- During the repayment period, interest accrued is also paid ( every three months )
Advantages
- The customer can choose the currency.
- Competitive Interest Rates are offered.
- There is a long - term repayment period.
- The size of the loan depends on the needs and repayment ability of the customer.
Regulations
- The property should be paid by foreign currency imported into Cyprus and
converted to Cyprus pounds. This requirement is satisfied if the property is
paid by a loan granted in foreign currency.
- The acquisition of property in the name of a non-resident requires the approval
of the District Officer.
- The registration of property in the name of a non-resident requires proof of the
import of foreign currency to be presented at the Central Bank of Cyprus, if
the value of the property is over CYP60.000,00.
Requirements for a housing loan application.
To proceed with a housing loan application you need the following
| 1 |
Photocopy of applicant's passport ( the page showing photograph of holder and personal details ) |
| 2 |
Bank reference |
| 3 |
Income information, such as: copies of the last 3 months salary advice, copy of last year's tax clearance or any other documents proving income. |
| 4 |
Copies of last 3 months Bank statements. |
| 5 |
Copy of Sale contract
Note: The Sale contract needs to be
- Stamped with the required stamp duty
- Witnessed by two witnesses.
- Deposited with the Land Registry within 2 months from the date of signing. |
| 6 |
Copies of the payments made for the property so far. |
| 7 |
Copy of Title of the property to be purchased |
| 8 |
Copy of application / approval from District Officer for the acquisition of immovable property in Cyprus by a non-resident. |
For more information on buying in Cyprus please contact us. |
