Cyprus, with its beautiful climate, high standard of living, and stable economy, remains a popular destination for foreign property buyers. In 2024, the real estate market in Cyprus continues to develop, offering a wide range of properties for purchase—from city apartments to luxurious seaside villas. In this article, we will explore the key steps in buying property in Cyprus, current prices, taxes and fees, as well as tips for selecting and registering real estate.
Key Steps in Buying Property
The process of buying property in Cyprus involves several key stages:
1. Choosing the Property: The first step is to determine the type of property and its location. Popular regions include Limassol, Paphos, Larnaca, and Nicosia. It’s important to consider the availability of amenities, schools, workplaces, and transport links.
2. Preparing Documents: To buy property in Cyprus, foreign nationals need a passport and proof of financial solvency. It is also recommended to hire a lawyer to verify the legal status of the property and handle all necessary documentation.
3. Signing the Contract: After selecting the property and negotiating with the seller, a sales contract is signed, and a deposit, usually up to 10% of the property price, is made. The contract must be registered with the Cyprus Land Registry.
4. Obtaining Permission: Foreign nationals must obtain permission from the Council of Ministers of Cyprus to purchase property. This process is usually a formality.
5. Payment and Completion: After obtaining all permissions, the remaining amount must be paid, and the transaction completed.
Property Prices
Property prices in Cyprus vary depending on the region, type of property, and its condition. In 2024, the average cost of apartments and houses is as follows:
- Limassol: One of the most expensive cities in Cyprus. The average price for a one-bedroom apartment is around €160,000, and for a two-bedroom apartment—from €220,000.
- Paphos: A more affordable region, with prices for one-bedroom apartments starting at €100,000 and two-bedroom apartments from €140,000.
- Larnaca: One-bedroom apartments can be found from €120,000 and two-bedroom apartments from €180,000.
- Nicosia: Prices for one-bedroom apartments start at €140,000, and two-bedroom apartments—from €200,000.
Taxes and Fees
When purchasing property in Cyprus, several taxes and fees must be considered:
- Transfer Fee: Ranges from 3% to 8% depending on the property value. A 50% discount is available for all. Not applicable when purchasing new property.
- VAT: A 19% VAT applies to new buildings, but the rate can be reduced to 5% for primary residences under certain conditions.
- Stamp Duty: Charged at 0.15% on the first €170,000 and 0.2% on the remaining amount.
- Legal Fees: Usually around €2,500.
Tips for Buying Property
- Conduct Due Diligence: Hire an experienced lawyer to verify the legal status of the property and all documents.
- Budget for Additional Costs: Include not only the property price in your budget but also taxes, fees, and any repair and maintenance expenses.
- Open a Bank Account: It’s recommended to open an account in a Cypriot bank for the transaction. However, this is not mandatory.
- Get Insurance: Consider obtaining property insurance to protect against unforeseen circumstances.
Buying property in Cyprus in 2024 remains a profitable and promising investment. By following the above advice and steps, you can successfully purchase a property and enjoy all the benefits of living on this beautiful island.
Disclaimer: This article is intended for general information purposes only. It is not a substitute for professional advice. Do not rely on the information in this article without seeking independent advice that considers the specific circumstances of your case. The authors and publishers are not responsible for any losses that may arise from actions or inactions based on this article.
