Guide to Buying Property in Cyprus for Foreign Investors

Cyprus is a beautiful island in the Mediterranean Sea, known for its sunny weather, rich history, and welcoming culture. Many foreign investors are drawn to Cyprus for its attractive property market, which offers great opportunities for investment, retirement, or holiday homes. This guide will walk you through everything you need to know about buying property in Cyprus as a foreigner.

1. Why Invest in Cyprus Property?

Cyprus is popular among international buyers for several reasons:

• Stable Economy: Cyprus has a growing economy and a stable property market. This makes it a safe option for long-term investment.
• Attractive Tax System: The country offers a favourable tax regime, with no inheritance tax and low property taxes.
• Permanent Residency Programme: Purchasing property in Cyprus can qualify you for permanent residency, which is a major draw for non-EU citizens.
• Lifestyle Benefits: With warm weather, stunning beaches, and a laid-back lifestyle, Cyprus is an ideal place for both living and holidaying.

2. Can Foreigners Buy Property in Cyprus?

Yes, foreigners can buy property in Cyprus, but there are some rules you need to be aware of:

• Non-EU Buyers: Non-European Union (EU) nationals can buy property but must obtain permission from the Council of Ministers. This process is straightforward and usually granted without any problems.
• EU Buyers: If you are an EU citizen, you can buy property in Cyprus without restrictions.

3. The Buying Process Step by Step

The process of buying property in Cyprus is similar to other European countries. Here's a step-by-step guide:

a) Find the Right Property

Before you make any decisions, research the areas you are interested in. Popular locations include Paphos, Limassol, Larnaca, and Nicosia. Each region offers something unique, so it’s important to choose based on your needs, whether it’s proximity to beaches, work, or city amenities.

b) Get Legal Advice

It is essential to hire an independent lawyer who will represent your interests. They will check that the property has a clean title deed and ensure there are no debts or legal issues attached to the property.

c) Reserve the Property

Once you've found your dream property, you will need to make a reservation by paying a deposit. This secures the property for you while your lawyer conducts the necessary checks.

d) Sign the Contract

Your lawyer will draft a contract of sale. The contract will include all the details about the property, payment terms, and any other conditions. Once both parties sign the contract, it will be submitted to the District Lands Office.

e) Approval from the Council of Ministers

If you are a non-EU buyer, this is the point where your lawyer will apply for permission from the Council of Ministers for you to purchase the property. This can take a few months, but it is usually a formality.

f) Final Payment and Transfer of Title Deeds

Once your approval is granted and the final payment is made, the title deed will be transferred into your name at the District Lands Office. You are now the legal owner of the property!

4. Costs Involved in Buying Property in Cyprus

It's important to know about the costs associated with buying property in Cyprus:

• Property Price: The cost of the property will vary depending on the location, size, and type of property.
• Stamp Duty: This is payable on the purchase price and is calculated at 0.15% for the first €170,000 and 0.2% on the remaining amount.
• Legal Fees: Your lawyer's fees will usually range between 1-2% of the property price.
• Transfer Fees: These are payable when the title deed is transferred to your name. The rate is between 3-8%, depending on the property's value.
• VAT (if applicable): New properties are subject to a 19% VAT rate, although first-time buyers may be eligible for a reduced rate of 5%.

5. Financing Your Property

If you need financing, Cypriot banks offer mortgage loans to foreigners. You can borrow up to 70% of the property's value, but it is important to check the terms with the bank, as interest rates and conditions can vary. You will typically need:

• A deposit (usually 30% of the property value).
• Proof of income and ability to repay the loan.
• A good credit history.

6. Permanent Residency by Investment in Cyprus

Cyprus offers a Permanent Residency Programme for non-EU nationals who invest in property. To qualify, you must purchase property in Cyprus with a minimum value of €300,000 (excluding VAT).

This residency does not grant citizenship, but it allows you and your family to live in Cyprus indefinitely. Permanent residency comes with several advantages:

• Long-Term Security: You can live in Cyprus without needing to renew short-term visas.
• Access to Services: Permanent residents have access to many benefits, including healthcare and education.
• No Need to Reside Permanently: You don’t need to live in Cyprus full-time to maintain residency. Visiting once every two years is enough to keep your permit valid.

7. Potential Risks and How to Avoid Them

While buying property in Cyprus is generally safe, it's important to be aware of potential risks:

• Check the Title Deed: Ensure the property has a valid title deed. Some properties may have outstanding loans or encumbrances that could complicate ownership.
• Construction Quality: Be cautious when buying off-plan or newly built properties. Work with a developer who has a good reputation to avoid construction delays or issues.
• Legal Representation: Always hire your own lawyer rather than using one recommended by the seller or developer to avoid conflicts of interest.

8. Why Use Admare Properties?

At Admare Properties, we understand the complexities of buying property in Cyprus, especially for foreign investors. We offer:

• A portfolio of high-quality properties in the best locations in Limassol.
• Assistance throughout the entire buying process, from property selection to legal advice.
• Guidance on residency and investment options to maximise your benefits.

Conclusion

Cyprus is an attractive destination for property investment, whether you’re looking for a holiday home, a retirement villa, or an investment property. By understanding the buying process, the associated costs, and working with trusted professionals, your investment journey can be smooth and rewarding.

Whether you’re seeking a luxurious beachfront apartment or a quiet countryside retreat, Cyprus has something for everyone. With the right support and advice, your property dream can become a reality in this beautiful Mediterranean paradise.