Frequently Asked Questions About Buying Property in Cyprus

Can foreigners buy property in Cyprus?

Yes, foreigners can buy property in Cyprus. Cypriot law allows non-residents to purchase property on the island. However, if the buyer is not a citizen of the European Union, they must obtain permission from the Council of Ministers. This procedure is largely a formality.

What taxes do you have to pay when buying property in Cyprus?

When purchasing property in Cyprus, you may need to pay VAT (if it’s a new property), stamp duty, and a transfer tax if buying a resale property. There is no stamp duty or transfer tax for new builds in Cyprus.

How much does property in Cyprus cost?

The cost of property in Cyprus varies widely depending on several factors, including location, size, type of property, and its condition. More detailed information can be found in our article.

Do I need permission to buy property in Cyprus as a non-resident?

Non-residents do not need special permission to buy property in Cyprus. However, they must obtain approval from the Council of Ministers, a procedure that is generally quite straightforward.

What is the process of buying property in Cyprus?

The process of purchasing property in Cyprus involves several steps: signing a preliminary sales contract, making a deposit, verifying the seller’s ownership, signing the final sales contract, registering it with the land registry, and paying all applicable taxes and fees.

Can I obtain citizenship or a residence permit in Cyprus by buying property?

As of 2020, the Citizenship by Investment program has been discontinued. However, you can still obtain a permanent residence permit by investing at least €300,000 in new property in Cyprus.

How long does it take to buy property in Cyprus?

The buying process typically takes between 1 to 3 months. On average, with competent legal support, the procedure lasts about 2 months, including the process of reducing VAT to 5% when purchasing a new property.

What additional costs should I expect when buying a property in Cyprus?

In addition to the property price, buyers should consider additional costs such as legal fees (starting from €2,500), bank commissions for transferring funds, and payment of taxes like VAT, Transfer Fee, and Stamp Duty.

Do I need to open a bank account in Cyprus to buy property?

Yes, you will need to open a bank account in Cyprus to facilitate the purchase and ongoing maintenance of the property. This simplifies fund transfers and the payment of taxes and other related expenses. It’s also possible to transfer funds directly from your foreign account to the developer’s account.

Do I need to appear in person to buy property in Cyprus?

Yes, personal presence is required in Cyprus to sign the sales contract. This step cannot be completed by proxy. If you are applying for permanent residence in Cyprus through the purchase of property valued at €300,000 or more, you will also need to be present at the Migration Department.

Can I get a visa or citizenship by buying a property in Cyprus?

While the Citizenship by Investment program has been closed, buying property can still grant you a residence permit. By investing at least €300,000 in real estate, you can apply for a residence permit for yourself and your immediate family.

Are there any restrictions on the purchase of property for foreigners in Cyprus?

There are no restrictions for EU citizens. However, non-EU citizens may face some limitations. You can find more details in our article.

Do I need to come to Cyprus to sign a sales contract?

Yes, you must be physically present in Cyprus to sign the sales contract.

What does the process of buying property in Cyprus involve?

The process includes several stages: searching for and selecting a property, verifying ownership and ensuring there are no encumbrances, signing a preliminary contract and making a deposit, obtaining permission from the Council of Ministers (for non-EU citizens), and signing the final sales contract.

What services does a lawyer provide when buying a property?

A licensed lawyer will represent your interests throughout the transaction. They will check property ownership rights, ensure there are no encumbrances, verify the seller’s credibility, help prepare and translate documents, and ensure your interests are reflected in the preliminary and final contracts. The lawyer will also coordinate payment of fees and manage the process of reducing VAT to 5% if applicable.

How much does a lawyer cost when buying property in Cyprus?

Legal fees typically range from €2,500, depending on the complexity of the transaction and the lawyer’s experience.

Can I get a residence permit by buying a property in Cyprus?

Yes, you can apply for a residence permit by purchasing property in Cyprus. Although the Citizenship by Investment program has ended, the residence permit by investment program is still active. By investing at least €300,000 in real estate, you and your family (spouse and children under 25) can obtain a permanent residence permit. However, this amount and the conditions may change, so consulting a professional lawyer for up-to-date information is recommended.

Can I rent out my property in Cyprus if I am not using it?

Yes, you can rent out your property when you’re not using it. Cyprus is a popular holiday destination, so demand for short-term rentals during the summer months is typically high. However, rental income is subject to taxation, and if you purchased a new property with a reduced VAT rate, you are prohibited from renting it out for 10 years.

What documents are required to buy property in Cyprus?

To buy property in Cyprus, you will need to provide documents such as your passport, proof of address, proof of funds, and other relevant information. Depending on your citizenship and residency status, additional documents may be required. A lawyer can provide a complete list of required documents and assist in their preparation.

Can I get a mortgage in Cyprus to buy property?

Yes, mortgage lending is available to foreign buyers in Cyprus, but it typically requires a stable source of income in Cyprus. If your main income is not linked to Cyprus, obtaining a mortgage may be more difficult. It’s advisable to consult a financial advisor or real estate agent in Cyprus to discuss your options.

Are there rental programs with subsequent purchase of real estate in Cyprus?

In Cyprus, lease-to-buy programs are not common.

What should I know about renting property in Cyprus?

Renting property in Cyprus is a relatively straightforward process. The law protects the rights of both landlords and tenants. Depending on your budget and preferences, you can choose from various property types, including apartments and villas. It’s important to note that rent payments usually do not include utilities, which are paid separately. Electricity and water bills are typically issued in the tenant’s name.

Are there VAT refund programs when buying property in Cyprus?

Yes, when purchasing a new property, foreigners can apply for a VAT reduction from 19% to 5%. This applies only to primary properties bought from developers and not to resale properties. The reduced VAT rate can be applied only once for the first property purchase in the Republic of Cyprus.