To buy a property in Cyprus is a simple and straightforward procedure (less than 1-3 months).
Main steps of buying a property in Cyprus:
- First, choose your new home from our diverse property collection.
- Second, we recommend using a lawyer to assist with due diligence and contracts. As agents, we also provide sales agreements and assistance, however, lawyers have special access to property information (to ensure your property is free of mortgages etc.)
- Third, reserve your chosen property by signing an agreement and paying a deposit. Depending on the type and status of the property the reservation deposit is 5-10%. It is a part of the first payment and deducted from the contract price.
- When your lawyer is ready with all documents, a property sales contract is signed. Correspondingly it will state the agreed timings and payment procedure.
After the sales contract is signed
5. Usually 1-4 weeks (after the sales contract is signed), a buyer will need to pay a 30% down payment of the value of the property (using your own funds). The balance will be either from individual funds or a bank loan.
6. For loan applications the buyer will need to bring recent bank statements, income statements and other documents.
Generally, (depending on the buyer’s individual circumstances) the bank approves a 20% deposit. (Interest-only loans are also available but local banks are very selective. Depending on the buyer’s age the length of the loan may be up to 40 years).
7. Furthermore, the lawyer will arrange payment of the stamp duty fees and will submit the sale agreement to the Land Registry to safeguard your rights as owner. (if applicable: lawyer submits reduced VAT rate application to the Authorities).
Of course, if the selected property is at its early stages of development or off-plan you will have the option to select the finishing materials and fittings.
8. A payment schedule is completed if a ready property was chosen (or agreed upon based on construction progress).
9. Electricity and water connection (if a property is completed).
10. Title deeds transferred/issued (on completion of the project)
As agents, we introduce all parties and assist throughout the transaction process. Usually, lawyers in Cyprus charge 1% of the selling price or between €1,000 – 2,000 (depending on the value of the property).
For most people, the property is the biggest purchase in their lifetime therefore you should ensure that your interests are safeguarded.