Can foreigners buy property in Cyprus?
Yes, foreigners can buy property in Cyprus. Cypriot law allows non-residents to buy property on the island. But if the buyer is not a citizen of the European Union, but he needs to obtain permission from the Council of Ministers. This procedure is rather formal.
What taxes do you have to pay when buying property in Cyprus?
When buying a property in Cyprus, VAT is paid (if it is a new property), stamp duty and tax on the transfer of ownership when buying a second home. There is no stamp duty or tax on the transfer of ownership when buying a new building in Cyprus.
How much does property in Cyprus cost?
The cost of real estate in Cyprus varies greatly and depends on many factors, including location, size, type of property, its condition and much more. You can read more details in our article.
Do I need to obtain permission to buy property in Cyprus as a non-resident?
You do not need to obtain a special permit to buy property in Cyprus. However, you must obtain permission from the council of ministers, but this procedure is quite formal.
What is the process of buying property in Cyprus?
The purchase process includes signing the 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 residence permit in Cyprus by buying a property?
Since 2020, the Citizenship by Investment program has been cancelled. However, you can obtain a permanent residence permit under the state program by investing in new property in Cyprus for at least 300,000 euros.
How long does it take to buy property in Cyprus?
The buying process can usually take 1 to 3 months. On average, with competent legal support of the transaction, the procedure lasts 2 months. Including VAT reduction up to 5% when buying a new property.
What additional costs should I expect when buying a property in Cyprus?
In addition to the value of the property itself, buyers must take into account certain additional costs associated with the transaction. These costs include the services of a licensed lawyer (from 2500 euros), bank commission for transferring funds, payment of taxes: VAT, Transfer Fee, Stamp Duty.
Do I need to open a bank account in Cyprus to buy property?
Yes, in order to purchase a property and subsequently maintain the property, you will need to open a bank account in Cyprus. This simplifies the process of transferring funds and allows you to simplify the payment of taxes and other related payments. It is also possible to transfer funds for the purchase of real estate directly to the developer’s account from your foreign account.
Do I need to appear in person to buy property in Cyprus?
Yes, in order to purchase property in Cyprus, a personal presence is required. The need for personal presence in this case is due to the need to sign documents.This step cannot be done through a proxy. If you decide to obtain permanent residence in Cyprus when buying a new property from 300,000 euros, then your presence at the Migration Department is also required.
Can I get a visa or citizenship by buying a property in Cyprus?
Yes, buying real estate can be your ticket to residency. However, it is important to note that the Citizenship by Investment program was closed in Cyprus in 2020. However, foreign investors can still apply for a residence permit by purchasing property worth at least €300,000.
Are there any restrictions on the purchase of property for foreigners in Cyprus?
To date, there are no such restrictions for citizens of the European Union. However, there are some restrictions for citizens from non-EU countries. You can find out more in our article.
Do I need to come to Cyprus to sign a sales contract?
Yes, your personal presence in Cyprus is required to sign the sales contract.
What does the process of buying property in Cyprus involve?
The process of buying a property in Cyprus includes several stages: search and selection of an object, verification of ownership and absence of encumbrances, signing a preliminary contract and making a deposit, obtaining permission from the Council of Ministers for the purchase (for non-EU citizens), signing the final contract of sale .
What services does a lawyer provide when buying a property?
A licensed lawyer will represent your interests at all stages of the transaction. He will check the ownership rights, the absence of encumbrances on the property, the seller, help prepare and translate documents, will reflect all your interests in the preliminary contract and the final contract of sale. Coordinates the payment of fees and will manage the process of reducing VAT to 5% in the case of a new property purchase.
How much does a lawyer cost when buying property in Cyprus?
The cost of a lawyer’s services may vary depending on the complexity of the transaction and the level of professionalism of the specialist, but on average it ranges from 2,500 euros.
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. Even though the citizenship by investment program has been closed, the residence permit by investment program is still active. Under this program, if you invest at least €300,000 in real estate, you and your family (spouse and children under the age of 25) can obtain a permanent residence permit. However, this amount and conditions are subject to change, so we strongly recommend that you contact a professional lawyer for up-to-date information.
Can I rent out my property in Cyprus if I am not using it?
Yes, you can rent out your property when you are not using it. Cyprus is a popular holiday destination, so demand for short term rentals during the summer months is usually high.However, keep in mind that rental income is taxable. It is recommended that you consult your local tax advisor for details. And also, if you bought a new property in Cyprus and took advantage of the reduced VAT rate, then you do not have the right to rent out housing for 10 years.
What documents are required to buy property in Cyprus?
To buy property in Cyprus, you will need to provide a number of documents including your passport, proof of address, proof of funds and other information. Depending on your personal status, such as citizenship and residence, additional documents may be required. A lawyer will be able to provide a complete list of required documents and help you prepare them.
Can I get a mortgage in Cyprus to buy property?
Mortgage lending is available to foreign buyers in Cyprus, but this requires a stable source of income in Cyprus. Therefore, if your main income is not related to Cyprus, getting a mortgage can be difficult. It is always worth contacting 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 do not work.
What you need to know about renting property in Cyprus?
Renting a property in Cyprus is a fairly simple process. Legislation protects the rights of both owners and tenants. Depending on your budget and preferences, you can choose from a variety of property types, from apartments to villas. It is worth considering that rent payments usually do not include utilities and they are paid separately: electricity, water, cleaning of the territory and garbage disposal. Electricity and water bills are usually issued to the tenant.
Are there VAT refund programs when buying property in Cyprus?
Yes, when buying a new building, foreigners can apply for a VAT refund. Reduce VAT from 19% to 5%. This applies only to primary properties purchased from the developer and not to resale properties. The reduced VAT rate can only be applied once for the first purchase of property in the Republic of Cyprus.