The process of buying a property in Cyprus is clear, simple, straightforward and transparent. This makes it an incredibly attractive option for foreign nationals looking for the best place to buy property abroad. What’s more, since Cyprus is so keen on attracting and retaining foreign direct investment, not only is the buying process easy, getting a mortgage is simple, and local regulations governing developers are strict.
Before buying a home in Cyprus, it is important to do your research and due diligence on not only the country and location, but also the developer you are thinking of buying from. Established and reputable developers will have all the proper permits and permits to build legally, as well as adhere to quality standards like ISO 9001. When you’re doing your research, familiarize yourself with building regulations, including the type of concrete typically used. uses. used, understand what the minimum building standards are and make sure your developer meets or exceeds them. Look for historical evidence that your developer is financially secure and has a history of developments, then you can see the quality of finish on the properties and check if they were completed on time and to planned specifications.
There are two types of property titles to consider in Cyprus, freehold and leasehold. The leasehold system is very rare, but when it exists, the buyer will own the right to the property for a fixed number of years. Most people prefer and even insist on buying freehold property. You should always verify with your real estate agent, developer, and ultimately your attorney that your property is freehold.
The process of buying a property in Cyprus works like this:-
1) A buyer identifies a property they would like to purchase and a price is agreed upon. A Reservation Deposit Agreement is then signed and a deposit is paid. The deposit will vary but will be at least 1% of the purchase price and this money is paid ‘by contract’ meaning the deposit is forfeited if the buyer withdraws from the sale but will be returned if the seller withdraws. or the buyer withdraws. attorney found something wrong when searching.
2) The property is taken off the market for an agreed period which is usually one month while the buyer’s solicitor does all the searching to make sure that clear title will be given to the buyer, that the seller has the legal right to sell and that there are no debts on the property for example. When all the searches have been carried out satisfactorily, the sale proceeds upon signing the Sales Contract. The buyer then has a fixed term to make the payment to the seller.
3) Possession of the property comes when the house passes to the buyer and it is at this stage that utilities are connected and the buyer can officially establish his rights in Cyprus and obtain residency etc. The transfer of the property title follows. If the property is a resale, the transfer is usually immediate, if the property is new construction, the process can take several years, but the house is secured as the buyer’s property because the purchase contract is signed, sealed, and registered. with the land registry.
Those who need a mortgage to buy a property in Cyprus will be pleased to know that commercial banks in Cyprus lend to foreign buyers with a loan-to-value rate of up to 80%. More good news is coming in the form of a double taxation agreement between Cyprus and the UK and most other European nations as well. This is especially good for retirees retiring to live in Cyprus from Britain because, according to tax experts Grant Thornton, the first €3,417 of your pension income is tax-free, and then the rest is only taxed at 5%. Alternatively, expatriate retirees can choose to be taxed under standard tiered rules, resulting in the first EUR19,500 not being taxed, rising at a rate of 30 per cent on pension income above EUR36,301 and due to the double taxation agreement, without additional taxes. it is required to be paid in the UK.
As you can see, buying property in Cyprus is not only incredibly simple and straightforward, but the island’s oldest, most experienced and best developers guide and help their clients through the entire process, whether they are buying a new home from the developer or buying a resale property.
