FAQ

Frequently asked questions about buying property in Cyprus

As a non-Cypriot, what am I allowed to buy?

Property purchase in Cyprus by foreigners is relatively easy. Non-Cypriots can buy and acquire the title deed of one property in Cyprus and second after some years. The extent of buying land is unlimited. To register the property on their name, they need the approval of the Council of Ministers, which is really just a formality nowadays. The duty of the buyer to himself is to find the right property for him within his budget. Then it is the duty of the lawyer he appoints to make the necessary searches for the specific property and if everything is to the Lawyer’s satisfaction and provided that the client is properly informed, the lawyer prepares the contracts which must be signed by both contracting parties and lodged in the Land Registry for specific performance purposes by the purchaser’s lawyer.

Do I need permission to buy property in Cyprus?

What are the terms of payment?

Are there housing loans available in Cyprus?

How does the transfer take place? How and at what cost do I get possession of the Title Deeds?

 1. Title deed of the land
 2. Building permit of the project
 3. Division permit of the project
 4. Certificate of Approval of the project
 5. Certificate of approval of the division

The last two certificates can only be issued after the completion of the project and it takes some time for the government departments to inspect the project and issue them. In cases where the purchaser buys a property that’s part of a project under construction, he must expect his separate title deed to be ready in approximately 4 to 5 years from delivery of the possession of the property. When purchasers acquire their title deed, it is the time for them to pay their transfer fees to the government.

The Transfer Fee is the most serious expense over and above the sale price that the purchaser bears and is calculated as follows:

3% on the first EUR 85.430,07 (CYP 50,000) of the value of the property
5% on the second 85.430,07 (CYP 50,000)
8% on any amount above EUR 170.860,14 (CYP 100,000)
If there are two purchasers buying one property, they pay less transfer fees as the first EUR 85.430,07 (CYP 50,000) per person is 3% and the second EUR 85.430,07 (CYP 50,000) per person is 5%.

Is there any fees payable over and above the price of the property for legal/ agency work or stamp duty?

The purchase contract entails Stamp Duty which is payable within 30 days of signing the contract. Stamp Duty is levied at the rate of 0.15 % per EUR 170.860 (CYP100,000) up to the value of EUR 170.860,14 (CYP 100,000) and thereafter at the rate 0.2 %.

It is always advisable to appoint an independent solicitor in Cyprus (maybe you could put couple of lines here on what kind of services are normally offered by the solicitors). The fees depend on the property price and the solicitor but the charges are most reasonable.

What expenses does the owner of an apartment have to meet? What is the owners share?
An annual immovable property ownership tax applies. This is a government imposed tax which is levied on the market value of the property. As of 1st January 1980 the following rates apply:

Apart from the expenses of telephone, electricity and water, for which there are separate meters, the owner has to meet a proportion of the Communal Expenses. This is in relation to the cost of lighting and cleaning of the common areas and maintenance of the swimming pool.
Communal Expenses are relatively inexpensive, they depend on the number of facilities the project offers and the number of units. They are not applicable for the properties, which don’t have commonly owned facilities (e.g. private villas with individual pools). Amount of communal expenses clause is included in the sales agreement and is paid yearly in advance, starting at the time when the purchaser takes possession of the property. Communal Expenses administration may be dealt with by our Customer Service department or by the formation of an Owner’s Committee.

The Municipal authorities also levy an annual property tax which is approximately EUR 60,00 to EUR 90,00 per year and a sewage tax of approximately EUR 35,00 to EUR 70 per year, depending on the value of the property.

Can I sell the property easily?Will I be able to take the proceeds of the sale out of Cyprus?

You can sell the property at any time without restrictions, either through our office or by other means. The equivalent of the full purchase price can be remitted immediately. Any profit may be taken out of Cyprus at the rate of EUR 17.086 (CYP 10,000) plus interest, per annum commencing the year after the sale. Property sales in Cyprus are subject to Capital Gains Tax at a rate of 20%; however the first EUR 17.086 (CYP 10,000) is exempt.

Are there Private Health Insurance Schemes available?

A number of companies offer medical insurance schemes. Diverse schemes are tailored to individual needs and budgets, and can cover hospitalization at a hospital or clinic of your choice, outpatient consultation and medication.

Is the property insured?

Hadjidemosthenous Ltd provides comprehensive insurance cover for fire, theft and associated hazards until the property is delivered to the owner. The insurance costs per year vary depending on the value of the property insured. Contents insurance is strictly the responsibility of the owner.

Are any after sales services available?

Yes. Our after sales department provides assistance and can arrange the following services:

• Electricity, water and telephone connection
• Moving to Cyprus
• The purchasing of household furnishings and appliances
• Insurance policies for house and contents, life, medical and vehicles
• Property management
• Interior decorating
• Cleaning, gardening and pool maintenance services 

How do we go about getting Temporary Residence?

Temporary Residence is easily obtained once the applicant fulfils certain requirements. Residency application forms are available at the Civil Registry and Migration Department of the Ministry of Interior or at the District Aliens and Immigration Branches of the Police. All forms are bi-lingual (Greek/ English). Together with this form, you will be expected to also provide the following:

• Proof of identity: Your valid passport or EU identity card used when you entered the Republic of Cyprus.
• Photocopy of the identity document/ passport
• 4 passport size photos
• Sales contract
• Proof of private medical insurance

Are the properties subject to VAT?

Newly-built properties, for which a proper application for building permission/licence has been submitted to the relative responsible authority after the 1st of May 2004 (when Cyprus joined EU), are subject to VAT at standard rate (currently 15 %). VAT is not applicable for properties with permits before 01/05/2004.
However, if the property is purchased for permanent residence, part of the VAT can be refunded in a form of a special grant.

This grant may be given to persons who purchase or erect a new building which is being used as their main and permanent residence provided that:

• The building is new and used for the first time
• The total size of the covered areas of the residence does not exceed 250 sq. m
• The applicant is a person aged 18 years and above, being a Cypriot citizen or a citizen of a member state of the European Union who is permanently residing in the Republic of Cyprus and has no other property in Cyprus that is used as a permanent residence.
• Upon receipt of the grant, the beneficiary is obliged to use the property as his/her main and permanent residence for a ten-year period.

The amount of the grant depends on the type and size of the residence, and it is calculated to area up to 130m².

Examples (property type amount up to 130 sq. m)

The grant is subject to annual increments according to inflation rates.