How to Buy Properties in Cyprus
Being a hot destination, people are buying properties in Cyprus more than ever. The island attracts millions of tourists every year. Due to excellent climate conditions, people are moving to Cyprus for retirement. Buying a property at a new place could be confusing unless you know the procedure. You can reduce your burden by hiring a lawyer or going to a reputable company.
If you want to buy property for sale in Paphos, Pafilia offers a free consultation. The largest construction company in Cyprus helps you find the best property for you. Once you share your requirements, they will guide you about available options.
In this article, we will talk about how to buy a property for sale in Paphos. Even if you are looking for property in other districts, the process remains the same. Furthermore, we will share the possible taxes and stamp duties.
Finalize Location and Property
First of all, you need to decide the district where you want to live. Depending on your preference, you can choose a district that meets your requirements. For instance, if you want to live in a district with a low cost of living, Paphos is the best option. If you want to buy a property for sale in Paphos, it will be cheaper as compared to other districts.
On the other hand, if you want to live near international schools and business centers, you probably need to live in Limassol. It has modern infrastructure with reliable public transport.
Secondly, you need to finalize the property. If you want to save agent fees, you can try a search for a property yourself. People add a signboard next to their house if it is available for sale. If you spend some time in your favorite area, you may find a suitable property for sale in Paphos.
Step By Step Guide to Buy Property in Cyprus
European citizens can buy properties in Cyprus with no restrictions. However, Non-European citizens need to get permission to buy real estate. Non-European citizens can only buy one house or one acre of land.
You have to meet the Council of Ministers to get permission. Thankfully, it is just a formality and you can easily get approval. It may take a while to get permission. This is the reason why it is advised to get a lawyer to handle the process.
To get the permission, you need to submit property details with current owner information. Furthermore, you need to show your source of income and current residence.
Before you finalize your documents, you must consult a lawyer even if you don't want to engage them for the application. They will be able to guide you if you need to submit any other information.
Cyprus Property For Rent
When it comes to buying a property for rent, you have to get a formal contract for sale. You have to make a deposit in the District Lands Office within two months after the contract is signed by both parties.
If you are a buyer, you need to make a deposit of at least 10 percent of the sale price. Once the government provides permission and you transfer the funds, you will get the title deed.
Moreover, if you have a lawyer taking care of the process, they can register the property in the name of the owner. It means that you don't need to stay in Cyprus until registration.
Taxes and Stamp Duty
People often ignore taxes and duties, which contribute to the overall cost of the property. It is best to reserve about 15 percent of the property price for taxes and stamps. Moreover, it will help you cover legal costs and registration charges.
The transfer tax varies from 3 to 8 percent and buyers need to pay it. The value-added tax is 19 percent. However, you can get it reduced to 5 percent if you are buying or constructing your first home in an area less than 250 square meters.
The legal fee is not required but is highly recommended. It is usually between 850 to 1700 Euros. You have to pay a certain percentage of stamp duty depending on the value of the property. Thankfully, it is capped at a maximum of 20,000 Euros
If you are buying through a real estate agent, they usually charge about 5 percent of property value. The minimum fee is 3 percent by law.
Things To Consider When Buying Property in Cyprus
To avoid unnecessary trouble, you need to consider a range of things while buying a property for sale in Paphos. Here are some recommendations for buyers.
- Hire a lawyer to take care of legal matters.
- Make sure the real estate isn't in the middle of a dispute. This is really important while you buy a property in Northern Cyprus
- Hire an independent buyer's agency or broker to inspect the real estate. They will be able to highlight any issues.
- Write down the damages to the property. It allows you to make a list of construction and renovation required.
- Ensure the property has access to necessities and utilities.
Conclusion On Property For Sale in Paphos and All Over Cyprus
Buying a property in Cyprus is relatively easier than in other countries. Once you get permission to purchase a property, the remaining process is easy.
If you are considering purchasing a property in Cyprus, remember that you can obtain citizenship or Cyprus residency through investment. If you invest 2 million Euros, you get citizenship. However, you can get Cyprus residency with only a 300,000 Euros investment. Buying a property through Pafilia will make it easy to get the residency. They will handle the entire process for you.
In any case, it is highly recommended that you get a lawyer to manage your deal. It will save you from unnecessary trouble and speed up the entire process.