Real Estate Legal Services
Thinking of buying a buying a Real Estate property in Cyprus? Our Real Estate Property Lawyers will be more than happy to guide you effectively through each and every step of the transaction while providing valuable legal advice for the avoidance of any dispute and/or any unwanted complications.
You might be thinking that buying real estate abroad can be tricky and exhaustive.
Well… you are right, but at least since you are reading this, you are on the right track, so keep scrolling and find more information on our Real Estate Legal Services.
Cyprus properties attract the interest of foreigners who are looking for a holiday home, retirement home or just for an investment purpose. The reason is simple 300+ days of sun, golden sand beaches, crystal clear waters, picturesque villages and a high-quality lifestyle.
Upon our engagement for the provision of our Real Estate Legal Services, we will provide you with our professional legal advice through our experienced real estate property lawyers and we will initiate and complete the sale of property procedure whether this is a new development or a property resale, leaving you to worry about the colour of your new bedroom walls.
Our firm will also provide you with guidance and beneficial valuable insights regarding the ideal property location, tailored-made to the purpose of your new property purchase in Cyprus.
Our Real Estate Legal Services & The Property Purchase Procedure
1. Due Diligence
Once our firm is appointed to carry out the Real Estate Legal Services for the Property transaction we will:
1. Perform due diligence on the seller whether this is a legal or physical entity.
2. Research the Land Registry’s database to ensure that the Property is free from any mortgages and/or other burdens and further ensure that the Property (in case it is a new development) complies with the planning & building permits, architecture plans and contractual specifications.
2. Reservation Agreement
Following the due diligence, our firm will provide you with a draft reservation agreement which will be signed between you and the seller.
The purpose of this agreement is to secure a reservation deposit for the property (usually 1%-2% on the purchase price) in order to delist the property from the market for the period agreed in the reservation agreement or until the parties are ready to finalize the transaction.
3. Sale of Property Agreement
Once you have executed the reservation agreement we will draft the sale of Property Agreement in order to finalize the terms of your Real Estate Property transaction.
After the sale of Property Agreement is signed by the Seller and Purchaser, we will prepare the application (if applicable) requesting approval regarding the Property purchase by the Council of Ministers.
4. Compliance with the law 173(I)/2012
Now that the Sale of Property Agreement is signed, you or our Firm on your behalf will have to make sure that the Sale of Property Agreement complies with the Cyprus Stamp Duty Law 173(I)/2012.
To do this, the Agreement and its copies must be presented at the Inland Revenue Department where a fee is paid for the validation of the agreement with the relevant stamp duty. The fee for the stamp duty is calculated according to the sale price
5. Registration of the Agreement at the Land Registry
After the Agreement has been stamped at the Inland Revenue Department, you or our Firm on your behalf will have to register/lodge the Sale of Property Agreement at the District Land Registry Office for specific performance purposes.
This is step is very important since it will protect and provide the Purchaser with ownership rights over the Property until the title deed in the name of the Purchaser is issued.
6. Transfer of Property Ownership & new Title deed
When the terms of the Sale of Property Agreement including the payment and delivery of the Property are completed the Parties will arrange to meet at the Land Registry Office for the Transfer of the Property ownership by issuing a title deed in the name of the Purchaser. The aforesaid procedure is usually made immediately in case of a Property resale since the Seller (usually) has already the title deed in his name.
When the Property transaction involves a new development and the title deed will be issued for the first time, it will be registered directly in the name of the Purchaser, provided that the development complies with the building permits and other relevant permits.
What to expect when buying
property in Cyprus
Property purchase in Cyprus by EU citizens
EU citizens are not limited when it comes to buying a Real Estate property in Cyprus. Moreover an EU citizen will also have the right to acquire and register on its name unlimited Real Estate properties.
Property purchase in Cyprus by Non-EU citizens
Non-EU citizens are eligible for Real Estate property purchase in Cyprus, provided that their application requesting permission to buy Real Estate property in the island is approved by the Council of Ministers.
The application (Form Comm. 145) should be filed upon signing the contract of sale and usually the approval/permission is granted within 3-4 weeks from the day of filing.
Sale agreement stamp duty
The stamp duty on the Sale Agreement is calculated on the value of the Sale. For the first Euro 5.000 no stamp duty is required.
For Sale Agreements with sale value between Euro5.001 - Euro170.000 a stamp duty worth of €1,50 per €1.000 is required.
For Sale Agreements with sale value over Euro170.000 a stamp duty worth of €2,00 per €1.000 is required.
Click HERE to download the official Stamp Duty Calculator, directly from the Cyprus Tax Department. Once completed, the report should be printed and presented at the Tax Department for payment along with the original agreement and its copies.
Immovable property transfer fees
When buying a Real Estate Property in Cyprus which is not subject to VAT, the District Land Registry Office will require the payment of transfer fees upon the tittle transfer of the said Property which are calculated as per the below:
|Up to €85.000||3%|
|From €85.001 to €170.000||5%|
1. The above rates are currently reduced by 50%
2. The above rates are applied on the market value (not the sale price) of the property which is valuated by the Land Registry on the day of the title deed transfer.
The VAT rate which is added to the sale price of "new" Real Estate Property sales, is calculated at 19%, whereas the resale of (second hand) Real Estate Property are not subject to VAT.
Reduced VAT rate
Under certain circumstances a person can apply to the Cyprus tax authorities for the reduced VAT rate of 5% when buying a Real Estate Property for the first time.
The said Property must be used as the place of permanent residence of the applicant for the period of 10 years, therefore any lease and/or other monetization of the property is prohibited.
In the event where the applicant wishes to sell the Property and re-apply for the reduced VAT rate prior to the elapse of the 10 year period, then he/she will have to return the 19% VAT pro-rata for the years used the Property as a permanent residence.