Whether you are deciding to purchase for investment, relocate to Cyprus, or are looking to acquire Permanent Residency through the purchase of real estate, careful and considerate planning is essential to ensure that you will choose the right property for the right reasons.
In order to buy a property in Cyprus the procedure is as below:
1. Choice of property
Whether you are deciding to purchase for investment, relocate to Cyprus, or are looking to acquire Permanent Residency through the purchase of real estate, careful and considerate planning is essential to ensure that you will choose the right property for the right reasons. If you like one or more properties from our projects, viewing of properties and locations can be arranged and we are happy to show you the highlights of the local area in order for you to get a better feel for the location you wish to purchase in. The duration of the tour will be at least 2 – 3 days, during which you will personally inspect the properties and experience the benefits of the Cyprus lifestyle. During the tour, you will be accompanied by a representative of our company who speaks either English or Greek.
2. Preliminary agreement
After selecting a property, you should sign a preliminary agreement and pay a deposit to reserve the chosen property. The preliminary agreement is usually called a reservation agreement. Upon signing the reservation agreement, the property is taken off the market for conducting a legal check and agreeing about the terms of the deal. For this purpose, the buyer may consult a certified lawyer who will act on his behalf and will study the property from the legal point of view as well as recommend an appropriate version of the sales contract protecting the interests of the buyer to a maximum. Reservation deposits vary depending on the price of the property and are normally 2-3% of the purchasing price.
3. Opening bank account
Upon setting up a meeting with the bank, the buyer is recommended to open an account in a Cypriot bank for making the payments to the seller. Buyer's lawyer would normally assist you in this matter.
4. Contract of sale
Once the terms and conditions are verbally agreed, the buyer and the seller sign a contract of sale. Upon signing the contract, the lawyer applies to the so-called Council of Ministers to obtain a permit to purchase the property (it’s required for non-Cypriot buyers and normally is a simple formality).
5. Registration of Contract of Sale in the Land Registry
As the next step, the lawyer submits the contract to the District Lands Office to register the purchase. The Lands Office stamps the contract and records it in the Land Registry. This secures the buyer’s ownership rights until a separate title deed is issued (see Paragraph 8).
6. Apply for VAT Reduction (if applicable)
The buyer's lawyer will apply for a VAT reduction if the property is the first residence in Cyprus (5% instead of 19%).
7. Final Approval Certificate
After the delivery of the property, the Final Approval Certificate is issued by the government. Issuing it takes some time, and the government services are solely responsible for it.
8. Transfer of title deed
If the seller has got a title deed (ownership certificate) for the property, the transfer of the title deed on the name of the new owner can be done immediately. Typically, this is the case when buying a resale. If the property is brand new, the seller (developer) doesn’t have a separate title deed for the property and the buyer may end up having to wait before it’s issued. Until that time, the ownership rights of the buyer are guaranteed by the registration of the sales contract at the Lands Office (see Paragraph 5).