Here we have any easy to follow guide to purchasing
a property in Cyprus. Enjoy and if you have any questions please
do not hesitate to ask at the following e-mail
Cyprus became a full member of the EU on 1ST May 2004 resulting
in many changes for EU Nationals planning to purchase property in
Cyprus:-
1. An EU National resident in Cyprus is allowed to buy as much
property in Cyprus without restriction and does not need to obtain
approval from any authority. To prove residency in Cyprus an EU
National must apply to the District Administration for certification
of his residency by presenting personally to the District Administration
his passport and pink slip (residency), which has already been obtained
from the Immigration Department, together with Cy.£5.00 in
cash.
2. EU Nationals who are not resident in Cyprus are permitted to
buy as much land as they wish but are restricted to purchase one
house or one apartment for which approval from the Council of Ministers
is required.
3. In order to comply with the idea of free movements of people
and goods certain restrictions have been lifted. Citizens of the
EU may enter Cyprus without restriction even with only their National
identity card, provided there is a photograph.
4. Exchange control restrictions are no longer in force and it
is no longer necessary to prove that property was purchased from
External Funds.
5. Cyprus Investment Policy is liberal and allows 100% foreign
participation in all sectors of the economy, not only for EU Nationals
but also for investors from third countries, unless otherwise stated
in the legislation; e.g. The acquisition and development of land.
COUNCIL OF MINSTERS APPLICATION
For transfer of the property into an alien’s name, (EU Nationals
who are not resident in Cyprus and Non EU National who is resident
in Cyprus) permission from the Council of Ministers is required.
The Council of Ministers has authorized the District Officers to
grant approvals on its behalf. The criteria taken into consideration
in the process of examining an application for the purchase of property
include, inter alia, the applicant’s family status, financial
situation, occupation, the purpose of acquiring the property, its
location, etc. Approval is granted in all bona fide cases.
Applications for the acquisition of more than one residence in
Cyprus are not approved, except under very exceptional circumstances.
COSTS FOR PURCHASING PROPERTY
The costs associated with the purchase of the property are as follows:-
1. Stamp Duty for the contract is CY£ 1.5 per thousand up
to a contract value of CY£ 100,000 and CY£ 2 per thousand
in excess of Cy£ 100,000.
2. CY£ 1 for each copy of the contract.
3. CY£ 1 for the deposit of the contract with the Lands Office.
The Stamp Duty is payable when the contract is signed.
4. The purchaser will be liable to pay the following transfer fees
for the property
acquired, when this is registered in their name at the District
Lands office.
The fees are charged on the property’s market value at the
date of purchase.
Up to 50,000 - 3%
50,001 - 100,000 - 5%
Over 100,000 - 8%
Please note that the above transfer fee applies for each person.
If the property is registered in two names you will pay lower transfer
fees.
For example:-
Transfer fee of a property valued at Cy.£130,000, provided
such property is in one name the transfer fee will be:-
3% for the first Cy.£50,000 = Cy.£1,500
5% for Cy.£50,000 to Cy.£100,000 = Cy.£2,500
8% for Cy.£30,000 Cy.£2.400
Total Transfer Fee Cy.£6,400
Should the property be in joint names the transfer fee will be:-
3% for the first Cy.£50,000 X 2 = Cy.£100,000 = Cy.£3,000
5% for Cy.£30,000 = Cy.£1,500
Total Transfer Fee Cy.£4,500
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