Rights and obligations of foreign buyers

Citizens of which countries are entitled to purchase real estate in Cyprus?

Residential real estate in Cyprus can be purchased by foreign individuals and legal entities. EU citizens are allowed to buy real estate without restrictions and without the need to obtain any permits from government authorities.

Citizens of non-EU countries require permission from the Council of Ministers. In fact, this procedure is a simple formality, since permits are issued without any restrictions. Only two things are checked - whether the buyer has problems with the law and whether he already has a residence in Cyprus.

A foreign citizen has the right to purchase in his own name no more than two objects with an area of ​​no more than 4014 sq. m. To get around this limitation, foreigners can open a company and register objects on it or write them down to family members.

What types of real estate are allowed to buy to foreigners?

According to local legislation, foreign citizens can acquire any type residential real estate: house, apartment or land plot - up to 4014 sq. m., but no more than two units per family (that is, spouses; children are not counted here). Also, foreign individuals can buy commercial real estate within the framework of two units per family permitted by the state with a total area of ​​no more than 4014 sq. m. In this case, an entire commercial building or a floor in a building with several office premises, for which a common title has been issued, is considered one unit.

If more than two units of real estate are purchased, the title will not be issued. At the same time, objects can be operated in the usual way (live, rent, sell, etc.), but it is impossible to get a loan for them.

What rights does a foreigner get after buying real estate in Cyprus?

Owning real estate in Cyprus gives the right to obtain a multiple-entry national visa. On it, you can stay in the country for up to 90 days in half a year. At the same time, there is no opportunity to travel without a visa to the Schengen countries. Cyprus is part of the EU, but not Schengen.

Purchase of real estate in the amount of € 300 thousand automatically gives the right to receive permanent residence, which does not require renewal. And, having lived in Cyprus for a total of 5 years within 8 years, you can apply for the citizenship of the country through naturalization.

Investment citizenship program, according to which, having invested in the local economy from € 2 million, it was possible to quickly obtain a Cypriot passport, in 2020 was suspended. However, there is still an opportunity to obtain permanent residence in Cyprus for investment.

What responsibilities do a foreigner have after buying real estate in Cyprus?

Any owner must pay for utilities (electricity, water, garbage collection). Property tax in the country has been canceled since 2017.

How does the realtor help the buyer?

 • searches for properties that meet the client's requirements;

 • organizes a trip to Cyprus for property views;

 • agrees on the price and special conditions with the seller on behalf of the buyer;

 • agrees on the transaction procedure and dates of meetings with the notary;

 • prepares contracts and other documents, checks objects for possible encumbrances.

Responsibility for the purity of the transaction to the buyer in Cyprus lies entirely with the lawyer. When buying on the secondary market, the buyer will need to hire him, and in the case of new housing, these functions are taken over by the developer for free. The lawyer is responsible for the legality of the transaction, controls it at all stages, prepares the purchase and sale agreement, registers the property with the District Land Registry Office and re-issues the title page (document confirming the ownership of the property) to the new owner.

In Cyprus, you can find a Russian-speaking lawyer, which will save money on translators and just feel more comfortable in business communication.

Step-by-step procedure for real estate transactions

Stage 1. Opening a bank account and reserving an object

 Opening an account

After choosing an object, you need to open a bank account for the upcoming payments, since all payments for real estate in Cyprus are carried out by non-cash method. Among the Cypriot banks working with foreigners, one can distinguish such as Bank Of Cyprus (has representative offices for working with clients in Moscow, St. Petersburg and Kiev), Hellenic Bank, Astra Bank, Eurobank and Alpha Bank. The account is opened in euros. An individual will need the following documents:

 • international passport,

 • internal passport,

 • letter of recommendation from a bank where the individual is already served (the basic form is available from banks),

• confirmation of the origin of funds (salary, pension, dividends, interest on deposits, from renting real estate or vehicles, etc.) or a tax return for the last 2 years,

 • bank statement on the movement

The minimum deposit to activate a bank account in Cyprus is € 200.

Deposit

Immediately after the buyer has finally decided on the choice, the property must be reserved. To do this, you need to draw up a preliminary contract and pay a deposit. Usually it is 1–2% of the value of the property and is a non-refundable payment. And if the buyer later refuses the transaction, then this amount is not returned to him. But, if the deal breaks down through the fault of the seller, the amount is returned in full.

The signing of the preliminary contract must take place in the presence of a lawyer (in the secondary market). If the buyer is not going to be present at all stages of the transaction, he also draws up a general power of attorney for his lawyer, which is certified by an invited independent notary in the presence of the buyer. Based on this power of attorney, the lawyer will be able to fully conduct the entire process on behalf of the buyer, including signing the contract and registering the property, and the buyer can safely go home.

Usually the property is reserved for 1–1.5 months. During this time, the lawyer checks the documents for real estate, monitors that the seller's lawyer formalizes the release of real estate from pledges and encumbrances, if any (at the same time, a certificate of absence of debts - Tax clearance is issued), prepares a sales contract, coordinates it with the seller and the buyer and goes to the conclusion of the transaction.

Stage 2. Conclusion of the contract

Both the seller and the owner, accompanied by lawyers, and only their authorized representatives with powers of attorney can be present at the signing of the contract.

Purchase agreement - sales can be signed both in Cyprus and in Russia, at the representative office of a Cypriot company. The presence of a notary is optional. The contract is signed in duplicate, is binding for both the buyer and the seller and must be executed on all points.

1. If the applicant is married: marriage certificate, copy of the spouse's passport. The spouse must also submit a declaration that he / she does not have real estate in Cyprus.

All documents must be submitted within six months from the date of signing the sales contract.

If the applicant for whom the authorities have approved preferential VAT rate, refuses to use real estate earlier than 10 years from the moment of taking over ownership, then he is obliged to notify the VAT department of the Ministry of Finance about this within 30 days and proportionally pay the difference between the preferential and standard VAT rate in effect at the time of the conclusion of the contract for the remaining period.

For example, the applicant lived in the property for 7 years, after which he decided to sell it. In this case, he pays the difference 19% - 5% = 14% for only 3 years. (10 - 7 = 3)

VAT refund procedure

The applicant first pays VAT at the standard rate in force at the time of the contract and indicated in the contract for the purchase of real estate (19%). He then submits an application to the appropriate government department as described above.

After the VAT department confirms the eligibility of granting the exemption to the applicant, the VAT is recalculated at a reduced rate of 5%.

Usually by obtaining a reduced VAT rate by proxy the developer or the lawyer is engaged.

Stage 4. Registration of the new owner

After the conclusion of the contract, the foreign buyer, or rather his lawyer dealing with the transaction, must submit to the Council of Ministers a written statement of approval of the purchase and a copy of the passport, as well as pay stamp duty. Not later than 60 days after the signing of the sales contract, the buyer's lawyer must register the document with the District Land Registry Office. This ensures the security of the property rights of the foreign buyer.

Registration secures the legal rights of the buyer to the property until an individual certificate of ownership of the property is obtained, and guarantees protection against resale, purchase, lease or mortgage of property without his knowledge .

After the buyer pays the entire amount under the contract, it is necessary to wait for the formal permission of the Cabinet of Ministers to purchase real estate. For the final transfer of ownership and obtaining a title to a foreigner, the following documents are required:

 • an application submitted to the regional land chamber;

 • receipt of payment of the registration fee;

 • receipt of payment of tax on registration of ownership (upon re-registration of real estate acquired on the secondary market).

To obtain the title, the personal presence of the buyer and the seller is required. The transaction is registered with the Cyprus Land Department, which only takes a few hours. But buyers already have the right to use the purchased property.

The plot of land on which the property is located is also registered in ownership.

Buyers who purchase properties in new complexes will not be able to immediately receive a title page. The procedure for obtaining a title under the law can take up to three years. Many old properties do not have a title page at all, but they do have a title number - confirmation that the necessary documentation has been accepted by the Land Department for further title issuance.

Deleted transaction

If the buyer is unable to or a desire to be present at the transaction in person, his interests can be represented by a lawyer or a trustee. A power of attorney is drawn up for it, which must be certified by an invited independent notary in the presence of the buyer. On the basis of a power of attorney, a lawyer or trustee will be able to conduct the entire process on behalf of the buyer, including signing the contract and registering the property.

When choosing a property in Cyprus, you must take into account the additional costs of purchasing

Stamp duty

0.15% of the first € 170,860 of the value of the property and 0.2% of the amount exceeding € 170,860 will be charged. Stamp duty must be paid within 30 days after signing the contract of sale, after which you can transfer the contract to the Land Committee. Registration must take place no later than two months after the conclusion of the contract.

Property Transfer fee

Fee for re-registration of title to real estate.

Its amount depends on the amount of the transaction and on whether you bought property from a developer or on the secondary market.Today, when buying real estate on the primary market, the buyer is exempt from paying the title fee, that is, the title fee is 0%.

If the property was purchased on the secondary market, then the amount of the title fee is calculated as follows:

 • from the first € 85 thousand, 3% is paid;

 • from an amount in the range from € 85 thousand to € 170 thousand - 5%;

 • from an amount exceeding € 170 thousand, - 8%.

The amount of the fee can be reduced if the property is registered for two or more persons. In this case, the taxable amount attributable to each owner is proportionally reduced, which means that the tax rate becomes lower.

VAT (VAT)

This tax is levied on new properties. The standard rate is 19%, however first home buyers can apply for a VAT refund and pay it at a discounted rate of 5%. At the same time, the buyer of real estate can receive the right to the next VAT rate of 5% in 10 full years after receiving the previous benefit.

Land plots are not subject to VAT.

Lawyer's fee

Is 1% of property value + VAT. On an individual basis, lawyers often give discounts, so you can bargain.

An example of calculating additional costs

Suppose our object is a villa with an area of ​​145 sq. M. m with 3 bedrooms, which is located on a plot of 750 sq. m. Cost - € 360 thousand.

Consider the costs of buying such a villa on the primary (new) or secondary (built in 2010).

Property Type Primary Secondary

Transfer Tax € 0 € 21,700

 Stamp Duty € 637 € 637

Stamp Duty € 50 € 50

Legal Fee € 0 € 3,600

VAT 5% € 18,000 € 0

Total amount of expenses € 18 687 € 25 987

Mortgages in Cyprus

Foreigners can get a mortgage for the purchase of Cyprus property. There are two main banks that work with mortgage lending: Bank of Cyprus and Hellenic Bank. Usually the loan is up to 70% of the value of the property. The interest rate is 1.5–3%.

The loan cannot be obtained if the seller does not have a Title Deed when buying a secondary property. Also, the loan is not issued to persons over 60 years of age and must be repaid before the applicant reaches 60 years of age. Before obtaining a loan, the applicant is obliged to insure life.

Documents for a mortgage loan are submitted after the signing of the sales contract and its registration with the Land Department. To consider the application, banks usually request the following documents from the borrower:

 • copy of the passport;

 • information about the place of work;

 • certificate of no criminal record;

 • bank statement on the presence / absence of debts;

 • confirmation of the amount of income;

 • original contract for the sale and purchase of real estate;

 • copies of bank statements for the last 2 years;

 • Copies of payments already made in respect of the property;

 • Details of payments on previously received loans;

 • Proof of payment of stamp duty.

Application processing takes two to four weeks. As a rule, if the buyer is creditworthy and has no legal problems, the application is approved. If the purchase of real estate is made for two or more persons, then all specified buyers can get a loan within their shares.

Summary: this must be remembered

 • Foreign citizens can buy apartments and other real estate in Cyprus without restrictions on the type and location of objects. However, in your own name, you can buy no more than two objects with an area of ​​up to 4014 sq. m. This restriction can be circumvented by registering other objects for the company or family members.

 • Buyers of real estate are eligible for a Cyprus multiple entry visa, and can also obtain permanent residence if the conditions of the investment program are fulfilled.

 • Lawyer - a key participant in the transaction, which guarantees its safety. In the primary market, its functions are usually performed by the developer.

 • The purchase and sale agreement must be registered in the land register no later than 60 days after signing.

 • Mortgage loans are available for foreigners in Cyprus.