Investing in Cyprus real estate if you are not a European Union citizen
In other words, what can you get?
While purchasing property in Cyprus as a foreign national is feasible, there are some limitations.
One dwelling unit, one single-family home, or one parcel of land (not to exceed 4,111 square metres in total area) may be purchased. The lot shouldn’t be bigger than 41 acres. Commercial real estate can be purchased by a Cyprus-registered company or other legal body.
Multiple property purchases by non-Europeans
Multiple members of the same family can purchase a home.
When they acquire property in Cyprus, what protections do they have?
If a non-Cypriot purchases a residence (a house, villa, apartment, etc.) in Cyprus, then that person will be eligible for a visa that will allow them to stay for more than 91 days every six months.
A one-year temporary residence permit that is renewable is issued.
If you obtain a permanent residency permit in Cyprus, you can stay there indefinitely. If you buy a brand-new structure for the equivalent of €311,111 (before VAT) from the government, you get one of these.
Where do you even begin?
Contacting a specialised real estate agency is recommended if you are looking for property in Cyprus. Verify first that they are properly licenced for the position. It will safeguard you from fraudulent real estate agents and illegal operators.
While it’s possible to find your dream home in Cyprus without professional guidance, doing so is much more convenient if you hire a realtor who is familiar with the island’s market, can verify the property’s paperwork, and can advise you on all the legal matters involved in buying and registering a home.
This shouldn’t be a problem if you don’t know Greek. As such, you can find a number of legitimate real estate firms in Cyprus that provide services in your language.
Can this be accomplished swiftly and easily?
The professionals can assign you a dedicated agent who will act as your guide during the entire buying process.
The helper will:
- Ask you to compile a list of available houses that meet your needs and price range.
- Prepare a pitch for the home you’re interested in, set up a meeting with the seller, and walk them through the property. It’s fine if you can’t make it to Cyprus. At your request, your personal assistant will take photos and put together a comprehensive report, or they can have a video chat with you from anywhere on the premises.
- Find out if there are any liens or other claims against the property you want to buy.
- Give you an honest assessment of the benefits and drawbacks of the home you’re interested in.
- Assist in negotiating a price cut with the vendor.
- Verify all applicable laws have been followed in the selling and acquisition.
- Need assistance getting a Cyprus residency visa?
Can I buy a house in Cyprus via the internet?
That’s correct; you certainly can. Your assistant will assist you in completing the transaction in Cyprus and preparing the necessary paperwork to apply for a resident permit in Cyprus. To obtain your plastic residency card, you need to visit Cyprus once.
Where can I find information on opening a bank account in Cyprus?
In Cyprus, the buyer and seller must each have their own bank account in order to complete a real estate transaction.
This means the buyer will require the following in order to create a bank account in Cyprus:
- Proof of Funds Certificate
- An Address Verification Document
- Documentation for tax purposes or identification card
- work-related letter
Should you decide to open a bank account in Cyprus, you may be required to inform the local tax authorities. Because of the high cost of property in Cyprus, you’ll need to show proof of where your money came from, which means having your documents translated into English (if they are not in English or in Greek).
The Cyprus Tax Office has the right to review any wire transfers over €11,111.
Drafting the Agreement
You will need to make a down payment before the seller’s attorney or your agent can get started on drafting the sales agreement. Typically, a deposit won’t be more than 1-2% of the home’s selling price. When you put down a deposit, the property is taken off the market and set aside for you for the time frame you’ve discussed. Next comes the work of putting together a Sale and Purchase Agreement that, when complete, will outline all the pertinent facts of the deal, such as:
- Conditional Payment Schedule and Timeframe
- Specifics on how the vendor will be leaving the premises
- More constraints
- In the event that you are not fluent in Greek, the contract must be drafted in English.
The agreement to buy and sell has been signed
There is a lawyer present at the time of the agreement’s signature, as are all parties (the seller, the buyer, or their representatives).
Both parties need to read the agreement thoroughly. At the time of signing, the purchaser shall remit to the Seller’s bank account a payment equivalent to no less than 31% of the Purchase Price.
To make the deal official, you’ll also have to fork over some cash in the form of stamp duty when you sign the dotted line.
The Land Department of Cyprus is responsible for recording all property transfers. The Land Department is frequently involved in real estate transactions, and agreements are typically recorded on the spot. As we mentioned before, once the transaction is recorded, the buyer must petition the Council of Ministers for approval to re-register the title of owner.
The rights of the buyer are protected by the sales agreement against any illegal acts of the seller or other parties until the buyer is granted permission to get the title deed.
Getting a Cyprus title deed
This can take up to a year or more to complete. Buyers or their agents must return to the Land Department after gaining authorization to do so, pay the transfer fee, and then pick up the new document.
Although the purchase procedure has become more sophisticated over the past 11–15 years, it still does not appear to be overly tough today.
It’s evident that a non-native speaker needs expert advice in several areas.