STYLIANIDES GROUP

Buying in Cyprus

For non-Cypriots, the process of purchasing properties in Cyprus is very simple, especially when compared to other countries. Stylianides Group will be with you all the way, assisting you with anything that you may need.

Permission to Buy Property in Cyprus

 

  • Non-EU citizens are entitled to freehold ownership of properties, while offshore entities may buy premises for their business or as a residence for their foreign employees. Permission to buy property must be sought from the Council of Ministers by written application, submitted by the non-EU purchaser after the agreement is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.

  • EU citizens who are permanent citizens in Cyprus do not require permission to buy any immovable property.

  • EU citizens who are not resident in Cyprus also need the approval of the Council of Ministers.

  • EU citizens with permanent or temporary permits can register as many properties as they wish in their name, provided they have signed a confirmation with the government of Cyprus that they will stay in the country for the following five years. 

If requested, Stylianides Group can assist with submission of your application on your behalf.

Contract of Property Sale in Cyprus

 

The legal system in Cyprus is based on the British system. When purchasing a property the contract you sign is a private agreement between you and Stylianides Group. All contracts of sale are in English, but we can provide you with an official translation in any language you require. This is a simple procedure and all you have to do is ask us to take care of it for you.

 

Legal Property Advice for Buying in Cyprus

 

We recommend that you appoint an experienced property advocate to represent them in the purchase procedure.

The advocate will undertake all the necessary searches on your behalf, including those ascertaining that the land belongs to the vendor, is free of charges, has the necessary planning and building permissions and that the contract you intend to sign is fair and legally correct.

Filing the Contract of Sale to the Land Registry Department

 

Once the contract of sale is signed and stamped, your advocate, files within two (2) months a certified copy of the contract at the Land Registry Department to ensure the transfer of the acquired property into your name. 

Specific Performance Law safeguards a purchaser of immovable property from a transaction between a seller and a purchaser, especially when the purchaser is not allowed to immediately transfer the acquired property into his/her name even though payment of the consideration has been made.   Depositing a copy of the contract to the Land Registry gives the purchaser, according to the above law,  the right to seek “specific performance” of the terms and conditions of the contract and thus to register the property into the purchaser’s name. The contract of sale deposited with the Land  Registry can be withdrawn only with your consent. 

 

Cyprus Stamp Duty

 

In the case of a sales contract, you, as the purchaser, are liable for the payment of Stamp Duty at the rate of:

Value Rate

 

  • The first €5.000 @ 0%

  • €5.001 - €170.000 @  0.15%

  • More than €170.000 @ 0.2%

 

 

Example

 

Purchase Price: €400.000

 

€5.000 at 0 = 0

€170.000  @ 0,15%   = €255

remaining €225.000 @0,20%   = €450

TOTAL Stamp Duty payable €705

 

Cyprus VAT Payable on Property

 

Since Cyprus’ accession to the EU in 2004, VAT must be paid when buying a new build property.

In cases where an application for a town permit was filed before the 1st of May 2004, VAT will not be charged.

A rate of VAT (5%) has been introduced for properties purchased by permanent residents of Cyprus, provided that the property will be used as the main residence of the purchaser. This is applicable only to contracts of sale which are conducted from October 1st 2011 onwards. The rate will apply for the first 200 m2 of residences of total covered area of up to 275 m2.

Normally the standard rate of VAT is (19%).

No VAT is charged on the purchase of land.

Title Deeds in Cyprus

 

Transfer of ownership from Vendor to Purchaser is a simple procedure undertaken through the Cyprus Land Registry Office, either by the buyer in person or by appointing a third party with a power of attorney.

By purchasing your property from Stylianides Group, you are guaranteed your Property’s Title Deed.

 

When the Title Deeds are issued, Stylianides Group transfers the Title Deed of each unit in the name of the purchaser. From the minute your Contract of Sale is deposited at the Land Registry Department, you the purchaser can prevent the owner/developer from transferring the property elsewhere or changing it. 

Furthermore no burdens, charges or encumbrances can affect your right to seek specific performance after the contract has been deposited with the Land Registry, since you are the beneficial owner.

 

Property Transfer Fees in Cyprus


The fees charged by the Department of Land and Surveys for the transfer of immovable property are:

Property Price

 

Rate

 

Fee

 

Accumulated Fee

First €85.000

 

3%

 

€2.550

 

€2.550

€85.001 to €170.000

 

5%

 

€4.250

 

€6.800

Over €170.000

 

8%

 

 

 

 


Properties purchased between the 2nd of December 2011 and 31st December 2016, which are subject to VAT will be exempt from the above transfer fees. Properties not subject to VAT will be eligible for a 50% exemption from the above transfer fees.

 

Example 1

 

 

 

 

 

 

No transfer fees payable for properties with VAT.

 

 

 

 

 

  •  Property Price (net of VAT)

 €500.000

 

 

 

 

 

  •  Transfer fee

 €33.200

 

 

 

 

 

  •  Transfer fee now

 €0

 

 

 

 

 

  •  Saving

 €33.200

 

 

 

 

 


 For more information, feel free to contact us.

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