Owning
Property In Southern Cyprus – 3 Easy Steps
•
Step 1 - Find A Property & A Solicitor
• Step 2 - Exchange Contracts
• Step 3 - Completion
Owning property in Cyprus
has never been particularly difficult, but since the Republic
of Cyprus (the south) joined the EU in 2004, it has become even
easier.
Restrictions
on foreign ownership of property have mostly been lifted and
the formalities that used to be required are no longer needed.
Here's our beginner's guide to buying a property in Cyprus.
Step 1 - Find A Property & A
Solicitor
Just like in the UK, the two of the first things you need to
do are to find a property you want to buy and find a solicitor
to represent your interests and carry out the necessary legal
checks.
Use of a solicitor is essential in Cyprus,
especially if you are buying a new-build property.
Once you've found a property you like and agreed a price with
the seller, it's normal to place a small reservation deposit
- usually around CY£2000.
Step 2 - Exchange Contracts
Once you have reserved your property, you should be legally
protected from being gazumped
by other buyers. You now need to have your solicitor initiate
all necessary checks and searches and draw up a contract for
the sale.
If the property is a new build, the contract will include a
schedule of payments, which should be closely and explicitly
tied to progress on the property build.
With
new builds, it is essential to ensure that
you have a thorough, detailed contract.
Whether new build or resale, when you exchange
contracts with the seller you will be required to make a
20% - 30% deposit, which is normally not refundable if you pull
out.
Step 3 - Completion
Once you've exchanged and paid your deposit, it is just a question
of ensuring all the legal checks have been completed successfully
and of making sure your financing is in place.
If
it's a new build you will have to wait until the build is complete,
but resale properties should be able to move to completion fairly
quickly.
Once you've completed and signed the final contract
of sale, your solicitor will register the deeds with
the Land Registry in Cyprus and advise you of the fees and taxes
you now owe.
These normally include:
- Transfer Tax - 3% - 8%
- Stamp Duty - 1.5% - 2%
- Annual tax
- Solicitor's and surveyor's fees
Although these may seem a lot, there are fairly generous tax-free bands which usually mean that you only pay tax on part of your property's value.
Read
On
•
Introduction
• Buying A Property In Southern Cyprus – 3 Easy Steps
• Should I Get A UK or Cypriot Mortgage?
• Getting A Mortgage In Southern Cyprus
• Other Things To Consider Before Buying In Southern Cyprus
Buying
Overseas Property and Mortgages