Where can I buy property in Cyprus?
Before we get into the finest spots to buy real estate in Cyprus, it’s crucial to understand that the island is split into two factions. Northern Cyprus is seen as Turkish, but Southern Cyprus is regarded as Greek and hence a member of the European Union. Northern (Turkish) Cyprus is not a member of the European Union.
Because ownership of the property and the right to sell these contested properties are still in dispute, most of the properties for sale on Northern Cyprus territory carry a very high risk for buyers.
Expats acquire property in Southern Cyprus’ four main cities: Nicosia, Larnaca, Limassol, and Paphos. In general, where you buy real estate in Cyprus is heavily influenced by your lifestyle preferences and financial constraints.
What can iListers do for you?
We are a boutique consultancy with years of experience providing multinational families with tailored residence and citizenship-by-investment alternatives. We assist clients from all over the world in obtaining Golden Visas or residences while diversifying their portfolio with solid investments, thanks to our global offices and experienced, hands-on team.
Please contact one of our property consultants if you have any questions about our Cyprus property investment services.
History and overview of the Cyprus real estate market
The real estate business in Cyprus has long had a favorable impact on the country’s economy. In 2018, the industry accounted for 38.5 percent of the country’s yearly growth rate and 16 percent of the Cypriot economy’s Gross Value Added.
While the COVID-19 pandemic has had a significant impact on the Cypriot real estate market, there are evidence that it is slowly but steadily recovering. Cyprus is a popular destination for international real estate investors, with a wide choice of property types and price ranges to choose from.
Limassol currently holds the largest proportion of the real estate market (37%) while Nicosia is in second position, with the largest year-on-year rise (+10%) in sales. Non-nationals continue to be the main drivers of the real estate market, accounting for 47 percent of all transactions.
How to Buy Property in Cyprus: A Step-by-Step Guide
Non-EU nationals are only allowed to own one acre of land or one house or apartment in Cyprus, but EU citizens can buy real estate without any limits. All expats interested in purchasing property in Cyprus must first obtain approval from the Council of Ministers.
Approval is typically granted, but the process of obtaining it can be lengthy. That is why it is recommended that you hire a real estate lawyer in Cyprus to handle your application.
The following documents must be submitted by all applicants:
- Specifications of the property
- Property contract and current owner information
- Current residence and income statement of the buyer
- It is strongly advised that you first speak with a real estate lawyer in Cyprus to learn about the precise criteria and papers needed to purchase property.
Rental property in Cyprus
If you want to acquire a rental property in Cyprus, you must first obtain a legal contract of sale. It must then be filed with the District Lands Office within two months after both parties’ signatures. A deposit of roughly 10% of the transaction price is also required from the buyer. Only after the government has given approval and the funds have been validated can the title deed be lawfully transferred. If you have a Cyprus real estate lawyer on your side, they can register the property in the owner’s name.
Stamp duty and property taxes
You will be charged transfer fees, stamp taxes, and legal levies when purchasing a property in Cyprus. To pay these different registration fees and legal expenditures, it’s usually recommended to add 15% to the purchase price ( if you choose to get a real estate lawyer in Cyprus).
After you sign legal documents to secure your assets in Cyprus, you must pay stamp duty, which is calculated based on the market value of the property.
When buying a home in Cyprus, there are a few things to keep in mind.
When looking for a home to invest in in Cyprus, there are many factors to consider. In general, potential buyers are advised to do the following:
- Find a real estate attorney in Cyprus.
- Make sure the property isn’t in the middle of a legal battle over ownership (common for real estate for sale in Northern Cyprus)
- Inspect the home with a broker or an independent buyer’s agency for any signs that you’re being oversold.
- Make a list of any property damage, as well as any modifications or construction that is required.
- Check out the availability of utilities and services, especially if you’re looking to buy and rent.