Investing in property in Cyprus offers outstanding potential for investors and homebuyers. EU inclusion has done wonders to enhance Cyprus as a robust market in which to invest. A number of economic and natural factors combine to make Cyprus the ideal property investment location it is today.
Compared to many countries, the logistics of property purchase in Cyprus by foreigners are relatively simple provided one takes legal advice from a serious and professional firm. We put our maximum efforts in order to safeguard our client’s rights in full, whether our clients are purchasing holiday homes or properties for investment purposes. Restrictions as to what can be purchased by a non-Cypriot national apply, however they can be easily overcome by purchasing through a Cyprus Limited Company.
Upon receiving written instructions from our clients, requiring legal representation for a property transaction, we initiate our due diligence procedure. Our firm focuses its due diligence activities to collect information our clients need to conclude the deal in a timely and efficient manner. Our team has completed over four thousand of real estate due diligence and environmental business liability assessments for real estate, financial, legal, commercial, municipal and industrial clients.
Our expertise ranges from straightforward searches at the District Land Regisrty Offices and other relevant authorities to large-scale, multisite due diligence investigations associated with corporate acquisition or divestiture. Due diligence investigations associated with large scale transactions also engage the services of our associated Chartered Accountants, who ensure that the developing company has good financial standing and has no financial issues that may raise concerns and jeopardise our client’s interest. Our firm keeps our client’s concerns and risk tolerances in mind, in order to facilitate a rapid, comprehensive assessment that provides decision makers with the knowledge they need for a smooth property transaction.
Our contracts are tailored to the specific circumstances of each client as opposed to standard contracts. Each case is carefully examined on its own merits in order to ensure that the contract reflects the complexity of each individual transaction.
Once the contracts have been duly signed, we proceed with payment of the stamp duty to the Inland Revenue (levied at the rate of 1.5% up to €170,860 and thereafter at the rate of 2.0%) and deposit at the District Land Registry Office.
Acquiring the title deed
Transfer of the separate title deed of the property is accomplished through the District Land Registry Office. The Purchaser can either appear at the Land Registry to accept the transfer of a title deed in person or appoint a third party through a Power of Attorney or Representation, to accept the transfer on his/her behalf.
Upon transfer and registration of the property in the purchaser’s name, the District Land Registry Office will charge a transfer fee. Transfer fees are paid on the day of the transfer of the title deeds and they are based on the market value of the property at the time of purchase, calculated as follows:
A. Up to € 85,430 - 3%
B. € 85,431 to € 170,860 - 5%
C. Over € 170,861 - 8%
Should the purchase be made in joint names (provided the price is over €85,430) the effective value for calculations is halved.
Permit from the District Council
At present, a non-Cypriot national is required to obtain a permit to own immovable property in Cyprus from the relevant District Council. The transfer of the title deed can be effected once the District Council’s permission is obtained. We undertake to begin proceedings at the District Council on behalf of our clients by submitting an application form with all the supporting documents. This requirement is not applicable if a property is purchased through a Cyprus company.