Buying a property in Cyprus
1) Identify Your Property
With the assistance of a real estate agent or independent research you will identify the property you wish to purchase.
2) Due Diligence
We will conduct due dilligence checks for you to verify the property’s status i.e. whether it has title deeds, building and planning permit, mortgages etc.
Further to satisfactory results from due diligence, we proceed to drafting, negotiating contractual issues and signing an agreement.
If a title deed is not available we draft an assignment.
If a title deed is available we draft a contract of sale.
4) Stamping of Agreement
The contract of sale or assignment agreement is then stamped at the tax office. This must be stamped within 30 days of the signing otherwise an additional penalty is charged. The stamp duty fees are as follows:
- 0% up to Euro 500
- 1.5% upto 170,000
- 2%- on the balance above Euro 170,000
5) Lodgement of Agreement
The contract of sale must be lodged within 6 months from the date of signing at the District Land Registry Department. An assignment agreement must be lodged within 2 months from the date of signing, at the District Land Registry Department. The payment of the balance of the purchase price is made simultaneously with the lodgment of the Assignment. Failure to do so results in the loss of right to lodge the contract i.e. the property is blocked and cannot be sold or transferred to anyone else.
6) Transfer of title Deed
The parties must appear at the land registry and transfer the separate title deeds onto the name of the new owner of the property. Consequently the buyers must pay transfer fees to the Government. This fee is the largest expense, above the sale price that the buyer bears.
- 3% – on the €0 – €85.000 of the value of the property
- 5% – on the €85.000 – €170.000 of the value of the property
- 8%- on any amount above €170.000 of the value of the property
At the same time with the transfer of the title deeds, you must pay the balance of the purchase price after which the property belongs to you.
Once you own a property in Cyprus it is important to know the associated expenses.
These costs include: electricity, water, municipality taxes, Sewerage Board fees, Refuse collection, immovable property tax and common expenses (not always applicable).
Selling your property in Cyprus
If you wish to sell a property we are able to advise on the key legal issues whether you are based in Cyprus or abroad. These include:
- 1) Providing the necessary information to the purchaser or their representative
- 2) Drafting and signing a contract of sale
- 3) Making an application to the tax office in order to secure tax clearance for capital gains taxes
- 4) Securing certification from the local municipality and the sewerage board (if applicable)
- 5) Appearing at the land registry for the transfer of the title deed to the purchaser and collecting the balance of the purchase price
- 6) Sending the funds to our clients locally or abroad