Real Estate in Cyprus: Subtleties and Features of the Purchase

Traditionally, real estate is a profitable way to invest available funds. Everyone has probably heard the phrase “square meters do not depreciate in value.” This is why more and more people are thinking about investing in real estate.

However, here another pressing question arises: “If you invest in square meters, then where?” At this stage, it is important to analyze the global real estate market and find the most profitable country. Experts in this field regularly monitor the situation in the world, so investors can safely rely on their statistics. At the moment, Cyprus is one of the most favorable countries for investing in apartments. And that's why:

1. Improved economic indicators led to an increase in construction volumes compared to 2014.
2. 70% of the country's residents own their own real estate.
3. The country is actively developing in the tourism sector, attracting travelers from all over the world.

These statistics confirm the demand for housing stock, which is why real estate in Cyprus is a profitable investment.

Subtleties of Buying Real Estate

However, having the required amount of money is not the only consideration when buying an apartment in the country. If you are planning to invest in property in Cyprus, take your time and study the ins and outs of their legal system, or seek assistance from specialized agencies that help complete real estate purchase and sale transactions abroad.

The fact is that the registration of real estate transactions is based on British law, which is different from the system you might be accustomed to. Additionally, the island's accession to the EU has also influenced its real estate legislation.

At the moment, all transactions are subject to the Cyprus Real Estate Law, adopted back in 1946. This is an unshakable document that regulates any relationship between citizens within the framework of the transfer of the right to own property. The Land Registration Department (DRZU) handles the registration of real estate throughout the country, and all transactions are entered into the register and can be tracked at any time.

Limit on the Number of Purchased Properties

When planning to purchase real estate in Cyprus, a logical question arises: “How many apartments can you buy on the island?” The answer directly depends on your citizenship, leading to two possible outcomes:

• If you are a citizen of Cyprus or any other EU country, the amount of property you can purchase is unlimited.
• If you are not a Cypriot and do not have citizenship of another European Union country, certain restrictions are imposed on you. If you have unlimited capital that you want to invest in property in Cyprus, you have the right to purchase two units of property. This restriction applies to the family (husband and wife together, not separately).

Moreover, all foreign investors are required to apply for permission to register the purchased property in the name of the buyer. This is done at the District Office of the city in which the transaction is being made, after signing the purchase and sale agreement. However, this procedure is now more of a formality, as permits are issued to all buyers.

Procedure for Purchasing a Home in Cyprus

When purchasing property in Cyprus, each buyer goes through the following stages:

1. Selection of Property: The buyer looks through several apartments and selects the one they prefer.
2. Checking the Selected Object: Once the buyer has made their choice, a solicitor or lawyer conducts a thorough inspection of the property. At this stage, it is crucial to engage a qualified lawyer who will pay attention to all aspects and documents.
3. Signing of a Booking Deed: This deed secures the property in Cyprus for the buyer before the purchase and sale agreement is prepared.
4. Payment of a Deposit: To guarantee the purchase, the buyer pays a deposit, usually amounting to no more than 2% of the cost of housing.
5. Signing the Purchase and Sale Agreement.
6. Registration of the Transaction in the DZU.
7. Transfer of Title Document.

Property Taxes in Cyprus

Let's delve into property taxation on the island. When purchasing property in Cyprus, be prepared to encounter the following taxes:

• Stamp Duty: Ranges from 0% to 2%.
• Commission for Transfer of Property: Varies between 1.5% and 4%.
• VAT: 19% (applies to new properties).
• VAT on Land Plots for Development: 19%.
• Cyprus Capital Gains Tax: 20%.

Where Can I Find a Qualified Specialist to Support a Transaction?

Real estate transactions in Cyprus are a primary focus of our company. We offer services for the transfer of property rights throughout the island, providing comprehensive support from drafting contracts to the direct transfer of ownership.

Our clients appreciate our professionalism and individualized approach, making the process of buying a home easy and enjoyable while minimizing risks. We assume all legal obligations and provide an extensive range of services, including:

1. Legal support for various real estate transactions, including purchase, rental, and exchanges of apartments.
2. Assistance in large investment transactions for acquiring buildings, complexes, and blocks.
3. Support for turnkey transactions, involving negotiations with contractors and developers, as well as thorough bank verifications.
4. Aid in dealing with local authorities and conducting land cadastre procedures.
5. Assistance in preparing property taxes in Cyprus.
6. Preparation of necessary documentation and other agreements for the transaction.
7. Advisory services and recommendations on asset disposal, both indirect and direct acquisitions, and various commercial and residential real estate agreements.

By reaching out to us for help in the housing and commercial space sector, clients receive professional advice and competent support at all stages of property purchase. We aim to make real estate in Cyprus accessible to everyone while ensuring legality.