Buying a Property in Cyprus

The island of Cyprus has always been regarded as one of the top property destinations by foreign buyers. The ongoing demand for property by foreigners is due to various factors, including the relatively low cost of living, excellent weather, high quality of life, beautiful landscapes, and Blue Flag beaches. Cyprus is considered one of the safest and best relocation destinations in the world.

Do I need a Lawyer for Property Purchase in Cyprus?

While it is not mandatory to use a lawyer when purchasing property in Cyprus, it is highly recommended. A lawyer will handle all legal and formal aspects of the property acquisition, such as stamping and registering the Sale Agreement (Specific Performance) at the Land Registry Department, submitting applications for a Permanent Residency Permit and Citizenship, applying for a reduced VAT rate, connecting house utilities, transferring title deeds, and more.

Moreover, a lawyer will ensure that all your rights and interests are protected throughout the property purchase process in Cyprus.

If you choose not to engage a lawyer, Aristo Developers can manage all related legalities and formalities for a fee.

Is VAT Payable?

Yes, VAT is payable. It must be paid with each instalment at the rate (percentage) applicable at the time of the instalment payment.

If I Sell the Property I Buy in Cyprus can I Keep the Proceeds?

Yes, you may sell the property at any time, as long as you have fully paid for it and taken possession of the keys. However, if the property was purchased as your main residence for Citizenship or Permanent Residency purposes, you cannot sell it without risking the revocation of your Citizenship or Permanent Residency Permit.

Can I Use a Mortgage from an International Bank to Purchase Property in Cyprus?

Yes, you are allowed to apply for a mortgage from an international bank to finance the purchase of property in Cyprus. The typical financing structure involves the buyer contributing 30% to 50% of the purchase price, depending on the purpose of the acquisition and their financial standing. The remaining 50% to 70% can be secured through a mortgage or housing loan provided by the international bank.

However, if you are purchasing property in Cyprus specifically to obtain a Permanent Residency Permit (PRP), it’s important to note that the funds used for this purpose must still originate from abroad. Cyprus regulations stipulate that the financial contribution for PRP cannot be sourced through a mortgage obtained from a Cypriot bank. Therefore, utilizing a mortgage from an international bank is a viable option as long as the funds are not sourced locally.

This approach allows flexibility in financing your property purchase in Cyprus while adhering to the specific regulations governing PRP applications.

Can you offer Mortgage Advice?

We can offer mortgage advice tailored to your needs. We have partnerships with mortgage brokers in Cyprus who specialize in various types of properties we offer. Whether you’re interested in residential homes, investment properties, or commercial spaces, our mortgage brokers can provide expert guidance to help you secure the financing that suits your specific requirements.