Real estate on Cyprus

Foreigners are allowed to buy property in Cyprus.Moreover, they can register it as a physical and a legal entity. But in country there is only one restriction - a foreign customers can buy only one real estate object, whose area does not exceed 4014 m2.

So the main foreign players in the property market of Cyprus  register real estate of this country on all members of their families. But this applies only to residential property of Cyprus, and commercial real estate of Cyprus is possible to issue only on a legal person.

Basically foreign buyers purchase a primary real estate of the country. And often the contract is concluded still at the stage of construction. Therefore more often foreign buyers execute a contract with property developers.
The procedure of purchasing of Cyprus property starts with opening a bank account from which will be made transfer of the funds to the seller.  To open a bank account in Cyprus you will need a passport and 10 euros - the sum of the minimal contribution.

After selecting a suitable property in Cyprus buyer will have to make a deposit in the amount of 5-10 thousand euros. If in the future buyer will refuse to conclude a deal, the deposit will not be refunded.

Registration of deal shall be held within 30 days after you make the deposit. Keep in mind that lawyer should be involved in registration of all transactions. And signing of a contract of sale shall be held only in the presence of a notary. And this can be done both in Cyprus and in the representation of a Cyprus company, which is located in your country.

In the contract are described: the technical condition of the property and the payment procedure. During the signing of the contract the buyer has to pay 30% of the value of the property.

Moreover, the seller's lawyer before signing the contract will need to provide customer the documents, that the seller actually owns the property.

It should be mentioned that from 8 June 2012, both from foreign and domestic buyers is charged a privileged rate of VAT, the amount of which is 5 % of the value of property. In the past, it was 17 %. However, the reduced rate is available only to individuals for which the acquired real estate will be the main place of residence in Cyprus. In addition, it should be the  only one real estate in Cyprus, which is owned by the buyer.

After signing the contract customer's lawyer sends a statement  to the Council of Ministers of Cyprus, in which he requests to approve the procedure of acquisition of the real estate. The application shall include a copy of the buyer's passport. Resolution of the Cabinet of Ministers to purchase real estate occurs only after the buyer will pay the full amount of money, that is stipulated by the contract.

In addition, within 30 days after signing the contract, the buyer is obliged to pay stamp duty, which is equal to 0.15 % of the value of property.

Well and for entering the customer in the Register of the Property owners you will need to submit all the documents to the district land committee. Moreover it must be done within two months after signing the contract. Registration in the Land Registry will fix the legal ownership of customer on the purchased real estate. Moreover, this procedure is required personal appearance of both: buyer and seller.