The process of buying and registering a property in Cyprus - South Cyprus

Step by step process of buying a property in Cyprus

Buying a property in Cyprus is attractive due to the stable market, favourable tax conditions and ideal environment for living or investing. Nevertheless, it requires careful preparation and following set steps. Here is an overview of the process:

1. Preliminary preparations
Budgeting:
Consider not only the price of the property, but also additional costs such as taxes, legal fees and registration costs.
Property selection:

Determine whether you are looking for a condo, house, or commercial property.
Decide on the location (e.g., beach area, urban center, rural).
Visit multiple properties and compare their condition, location, and price.
Legal and technical verification:
Hire a lawyer to check the legal cleanliness of the property, ownership rights, and any encumbrances or debts.

2. Concluding the reservation and contract
Reservation contract:

After selecting the property, sign the reservation contract.
A deposit is usually required (usually 1-10% of the price).
Documentation check:
The lawyer will verify:

Title Deed.
Building Permit.
Documents on technical and legal specifications.
Negotiation of Purchase Agreement:
The agreement includes:

Total price.
Payment terms.
Term of transfer of ownership.

3. Registration of the purchase contract
Signing of the contract:
After the contract is signed between the buyer and the seller, the contract is registered with the cadastral office.
Provision of permits for foreign buyers:

Foreign citizens must obtain approval from the Council of Ministers.
The process may take several months, but ownership is secured during this time.
Taxes and fees:

Stamp Duty: Payable within 30 days of the signing of the contract (usually 0.15-0.20% of the price).
Tax (if applicable): The current rate in Cyprus is 19%, but the first home may have a reduced rate of 5%.
Transfer of Ownership Fee: This fee depends on the value of the property and is payable on transfer of ownership.

4. Transfer of Title
Title Deed:
On approval of the transaction and payment of all fees, the Land Registry will transfer the title into your name.
Transfer of Utility Rights:
Make sure that utility bills (electricity, water) and utility charges are transferred into your name.

Tips for a smooth process
Legal advice.