Guide to Buying Property in Cyprus
The Cyprus Property Market
Cyprus is one of the more popular real estate markets in the world. Activity in the
real estate market in Cyprus is brisk,
including foreign nationals who buy and sell real estate Non-Cypriots have been
involved in all areas of the real estate market. Foreign nationals have been found
to invest in commercial, investment and residential real estate in all areas of
the country.
Most industry experts maintain that the property market in Cyprus should continue
to do a brisk business well into the coming decade. With the entry of Cyprus into
the European Union, more and more foreign nationals from EU member states likely
will become involved in the Cypriot real estate market.
There are no prohibitions on foreign nationals purchasing real estate in Cyprus.
However, and as will be discussed in greater detail shortly, a foreign national
must obtain prior permission from a Cypriot governmental agency in advance of making
the purchase of real estate in that country. Generally speaking, this approval is
relatively easy to obtain -- although the process of obtaining the permission can
be rather time consuming
Investment Property in Cyprus
One of the primary areas that foreign nationals have become involved when it comes
to property investment in Cyprus
is in the resort and vacation property arena. Cyprus remains a very popular
destination for people on holiday. As a result, foreign nationals have taken to
buying apartments, single family residences and hotel properties which in turn are
utilized by men and women on holiday.
Over the course of the past decade, a number of foreign nationals have profited
dearly through investments in real estate used for vacation or holiday purposes
in Cyprus. Indeed, because this type of venture has proven so profitable for some
foreign nationals, these men and women have taken to purchasing and investing in
multiple property holdings in Cyprus. Again, and has been noted, this is particular
true in the area of investment in properties that are intended to be used for vacation
or holiday purposes. Now we are seeing more interest in
North Cyprus property investment as more and more visitors to the island
become familiar with the north side of Cyprus.
Residential Real Estate in Cyprus - Single Family Properties
A significant number of foreign nationals have established second homes and holiday
homes in Cyprus over the course of the past thirty years. The trend towards purchasing
second residences and holiday homes in Cyprus continues on to this day.
One of the more recent occurrences in regard to holiday or vacation s in Cyprus
involves the creation of significant developments that are designed exclusively
for people who want gracious residences on Cyprus. These developments in many instances
are taking the form of gated communities for the security conscious foreign national
who wants to idle away part of the year in Cyprus.
In addition, some foreign nationals have determined the benefit of purchasing oIn
addition, some foreign nationals have determined the benefit of purchasing older
residences in the country and embarking on improvement and remodeling campaigns
to bring them up to date. In some instances, these men and women are rehabbing properties
and putting them back on the market -- making nice profits in the process.
Residential Real Estate in Cyprus - Apartments
The Cyprus apartments market
is bustling in the 21st century. With Cyprus movement into the EU, a significant
number of foreign nationals from other EU nations are finding themselves in the
country with some degree of regularity. In this regard, many of these business men
and women have turned to spending a significant amount of time in Cyprus each and
every year. Rather than hole up in a hotel, these men and women have taken to buying
cheap Cyprus apartments.
Some of these business minded people have gone so far as to rent or lease out their
apartment properties when they are not in the country on business -- making their
apartments an income generating enterprise. sed apartments for In some resort communities,
men and women from foreign countries have purchased apartments for vacation and
holiday purposes. There is a wide range of different types of apartments of available
for sale in resort areas in Cyprus.
Holiday Property in Cyprus
As referenced previously, sales in holiday
homes in Cyprus is brisk business in the 21st century. One area in which foreign
nationals have been active in the market is the purchase and ownership of single
family, free standing residences on the island. These types of residences generally
do come with some fairly hefty price tags.
In addition to larger residences that are being purchased with regularity by foreign
nationals, many foreign nationals have taken to purchasing holiday apartments in
the country. In some instances, these foreign nationals have turned these types
of property into something of a lucrative investment. For example, when they are
not in residence in Cyprus, these men and woman are turning around and leasing out
these holiday residences to other individuals -- including many foreign nationals
-- who then use these residences for their own holiday purposes
Specific steps to buying property in Cyprus
The initial step that a foreign national must take before he or she can
buy property in Cyprus is obtaining approval from the government. Specifically,
a foreign national must require permission to purchase real estate in the country
from the Council of Ministers.
A would-be purchaser of real estate in Cyprus needs to keep in mind that the process
of obtaining approval from the Council of Ministers can take from between eight
to fourteen months. A would-be purchaser also needs to appreciate that if he or
she makes the purchase of real estate without the prior approval of the Council
of Ministers, a title deed will not be able to issue transferring ownership of the
real estate to the foreign national.
While the process of obtaining permission from the Council of Ministers is not a
matter of overnight approval, the process itself is not difficult. The Council has
taken steps to make the process as easy as possible for a foreign national seeking
to purchase real estate in Cyprus. Time consuming in some ways, the application
and approval process is not difficult to maneuver through.
Once approval is obtained from the Council of Ministers, the next step in buying
real estate in the country -- once a piece of real estate has been identified for
purchase -- is signing of the preliminary contract. At the time this agreement is
executed, a holding deposit is posted with either a lawyer or a notary. executed,
a holding deposit is posted with either a lawyer or a notary.
When the holding deposit is paid, a companion reservation deposit agreement also
is executed. In point of fact, it is the deposit and this secondary agreement. The
property is then taking off the market and remains in that position for the time
spelled out in these agreements. Provided that the terms of the preliminary agreement
are satisfied, the property will not return to the marketplace.
The deposit that is lodged in Cyprus normally is as low as 1%. The parties can negotiate
a particular deposit amount -- but, in most instances, the standard deposit is in
the amount of 1% of the overall purchase price of the real estate that is being
sold. The remaining balance due and owing on the overall purchase price will then
be due and owing at the time of the execution of the final contract, which will
be discussed shortly.
During the period of time that follows the execution of the initial, preliminary
agreement, the lawyer who has been appointed to oversee the transaction will investigate
the status of the title the real estate through the District Land Registry Office.
Following this period of investigation into the status of the title, and provided
that the buyer has obtained appropriate financing, the parties move onward to the
execution of a final contract. It is at this juncture that the closing of the real
estate transaction in Cyprus becomes rather complex when contrasted with what occurs
in many other countries around the world.
When the final contract is signed by the parties, the contract itself is filed with
the Land Registry Office to prevent the same piece of real estate from being sold
a second time. An application is then made to the Central Bank of Cyprus to approve
the transfer of funds for the purchase of the real estate. (This approval is not
necessary if both the seller and buyer happen to be foreign nationals. However,
it is required if at least one party to the transaction is a Cypriot.)
The title will be transferred to the buyer at this juncture and the buyer will be
entitled to possession the real estate. It is important to note that if the real
estate is newly developed, the title itself will not issue for upwards to three
years after the signing of the final contract. With that said, the buyer is protected
because of the filing of the final contract with the District Land Registry Office.
There will be some different taxes due and owing -- and paid by the purchaser --
after the signing of the final contract. However, these taxes are not particularly
costly or significant.
Property Abroad always recommends using a
Solicitor or Lawyer
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Further Reading on Cyprus