How to Buy a Holiday Home in Cyprus
Cyprus is a dream destination for a holiday home. The laid-back lifestyle, the abundance of sunshine, the healthy cuisine, the cheaper cost of living; all contribute to a wonderful way of life that so many people crave, and that so many do enjoy once here in Cyprus.
It is not only the promise of an improved lifestyle that is good reason for buying a holiday home in Cyprus – it is consistently voted one of the safest places in Europe (and the world!), it has a stable economy, a solid reputation for good, sound property investments, and it is a low tax economy – with one of the lowest corporate tax rates in Europe, no inheritance tax and a higher income tax threshold for basic rate than the UK. The list goes on. Read more about Life In Cyprus.
So, we agree that it is more than worthwhile investing in a holiday home in Cyprus, but how straight forward is the process? Can one purchase a property in Cyprus as a foreigner, and what are the steps involved? There are many questions we face when we consider our property investment, but don’t worry, the buying process here in Cyprus is relatively straightforward, and Comark Estates are here to help our buyers every step of the way. For now, here is a simplified overview of the buyer’s journey on How to Buy a Holiday Home in Cyprus.
Cypriots and EU citizens can buy as much property or land as they like, without requiring any permission, and without restriction.
Non-EU citizens are routinely granted permission to buy an immovable property for personal use, or land not exceeding 4000m2 for purpose of the erection of a residential property. The Ministry of Interior suggests that this permission can be granted for a further property, or even one residence and one commercial property. Immovable properties are considered as apartments, villas, plots of land, shops and offices.
This permission is considered more of a matter of course and tends to be granted to all bona fide applicants. Moreover, we have found the process for the application to be simple and to complete within a very reasonable timeframe. The law, named Immovable Property Acquisition (Aliens) Law Cap.109, is simply in place in order to safeguard the country’s economy against disproportionate ownership of real estate by foreigners.
Let’s talk Brexit. Although it has made the process a little more complicated, Brits can still move to Cyprus after Brexit, though we recommend getting advice and guidance from a red tape expert on the island to help you along the way. Read our article on Moving to Cyprus after Brexit for some more details.
Let’s talk money. Property prices in Cyprus are still very reasonable compared to other European countries. According to the Financial Mirror, in 2021 Cyprus (alongside Italy and Spain) had the lowest annual house price increase rate in Europe (and was the only member state to see a decreased in the first quarter of 2021). The real estate market in 2022 is very encouraging – sales in Cyprus rose 39 per cent in the first half of the year compared with the same period in the previous year.
Comark Estates will gladly assist you in finding your perfect holiday home in Cyprus. We are a fully licensed and registered real estate company and with years of experience in selling property in Cyprus. We consider and pride ourselves on being Cyprus Property Experts.
Our portfolio is vast; we sell properties ranging from modest apartments (from around €80,000.00) right through to the most luxury of resort and marina properties (selling for up to €10million and more). The market is varied, but guaranteed; Comark Estates are confident in finding you the right property at the right market value.
Normally a contract of sale will require a 30% deposit of the value of sale, but can vary. It is also worth bearing in mind that when considering your budget, in Cyprus it is recommended to allow for buying costs of around 10%.
There are three main costs when buying a property in Cyprus:
BUYING PROPERTY IN CYPRUS PROCESS:
- Property reservation: the offer is made to purchase a property at a specific price. The buyer then pays a reservation fee which effectively removes the property from the market for a specified period of time.
- Lawyer appointment: it is not legally mandatory to hire a lawyer, but it is highly recommended to. Comark Estates can recommend you reputable lawyers.
- Conveyancing/due diligence: The buyer’s lawyer carries out the necessary checks to confirm legal ownership and verify that the title is freely transferable.
- Contract negotiation and execution: The buyer’s lawyer will review (or draft) contracts of sale, assist with negotiations and ensure the process of execution.
- Application for a reduced VAT rate (for brand new properties only): The standard rate VAT on brand new properties is 19%, however buyers are eligible to apply for a reduced VAT rate of 5% for a primary permanent residence, subject to conditions – read more detail here: Buying Property in Cyprus.
- Registration of the Contract of Sale at the Land Registry Office – this provides the buyer with maximum protection.
- Permission to acquire immovable property in Cyprus – as mentioned above, this is generally considered a formality.
- Transfer of Title Deeds: When separate title deeds are ready, the buyer and seller present themselves at the Land Registry office to complete the transfer. If any fees apply these are payable by the buyer.
It’s as simple as that. We will recommend and share with you our long-standing, attested connections throughout the process, ensuring that you are always in good hands. Our guarantee is your peace of mind – Comark Estates will make sure that every step of the buying process is transparent, well communicated and in good time, followed up and executed with as little stress as possible for you, the buyer. It’s our job, it’s what we do, and we are excellent at it.
Disclaimer: the information provided by Comark Estates on this page is for general informational purposes only, and is provided in good faith. Comark Estates are not liable to any changes in this information.
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