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How
to Purchase a Property in Cyprus
| How
to Become a Property Owner in Cyprus |
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Non-Cypriot
citizens are permitted to acquire one of
the following: an apartment or house or
a building plot of land up to three
donums (4,014m2). Offshore entities may
also acquire premises for their business
(with restrictions) or as a residence
for their non-Cypriot employees,
provided the residence is registered in
the employee’s name. These
restrictions on the acquisition of
property will be lifted for EU-citizens
from 2009. We offer a friendly
complimentary consultation service on
all of these points, without obligation.
YOUR
PERSONAL PROPERTY CHECKLIST
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| FINANCING
YOUR PROPERTY PURCHASE |
Many
clients prefer outright payment of their
property, but it’s good to know that financing
is available, if required. The most commonly
used financing options in Cyprus and abroad are
as follows:
1. Mortgage or loan in your home country
If you own a property in your home country,
equity can be released by way of arranging a
mortgage or loan against this. This service is
provided directly by most UK banks and building
societies, or you can seek advice from an
independent mortgage adviser.
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We can refer you to professional financial
advisers in the UK who will analyse your
financial needs, advise on various types of
mortgage schemes, and find the best mortgage
deal for you. Any advice given is confidential
and without obligation.
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2. Loan in Cyprus
If you prefer to arrange for financing in
Cyprus, as a large and reputable property
developer, we can assist you in obtaining a bank
loan on the best available terms. Loans in
Cyprus are usually given for up to around 70% of
the property value. Repayment periods range from
around 10 to 20 years, depending on the currency
of the loan. As most property in Cyprus is
currently sold off-plan, we provide the bank
guarantee required as collateral with the cost
being borne by the purchaser.
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| SELECT
AND RESERVE YOUR PROPERTY |
If you have
set your heart on a particular
property, you can fix the purchase
price and take the property off the
market for a reservation fee of CYP
1,000-2,000. If you change your mind
within 30 days, as part of our
flexible client service, reservation
fees are transferable for a period
of 1 year to another property, or to
another family member for the same
or another property. When you
proceed with your purchase, the
reservation fee is, of course,
deductible from the purchase price.
Due
to the high demand for property in
Cyprus, most properties coming onto
the market are currently purchased
off-plan. Following receipt of the
reservation fee on the property of
your choice, our standard payment
terms are payment of a 30% deposit
within 30 days of signing the contract
of sale. The remaining stage payments
are due between the date of contract
signature and completion of your
property. We are flexible on the
schedule of stage payments, taking
individual client requirements into
account.
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For your peace of mind and
to ensure you are absolutely happy, we
furthermore agree on a considerable final
payment installment upon completion and
delivery of your new property to you.
Please note that for our property re-sales,
separate payment terms are in place. Please
ask us about these.
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We always recommend our
clients to take independent legal advice from
a local English speaking lawyer, familiar with
assisting non-Cypriots in purchasing property
in Cyprus. Solicitor’s fees are around 1% of
the property purchase price and we can refer
you to a number of reputable lawyers in Cyprus
to represent your interests.
| Property
Price CYP |
Approx.
Solicitor’s Fee CYP |
| 80000 |
800 |
| 120000 |
1200 |
The Cypriot legal
system is based on the British one. All
contracts of sale are private agreements
between the vendor and purchaser and must, by
law, be in writing. To ensure you understand
everything, naturally, we formulate these in
plain English.
| FILING YOUR
CONTRACT OF SALE WITH THE LAND
REGISTRY |
To protect your
beneficial rights to property ownership, you
must always ensure that your lawyer has filed
your contract of sale with the land registry
as soon as possible, but no later than 60 days
after signing the contract. This filing incurs
only a nominal fee, and more importantly
ensures that your rights to the property are
legally protected by the so-called “specific
performance”. Your contract of sale, once
held at the land registry, cannot be withdrawn
by anyone, and therefore the property cannot
be leased, sold, transferred or mortgaged by
anyone other than the purchaser from this
point on.
Contract Filing Fee CYP 1.00
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WHAT
HAPPENS BETWEEN CONTRACT SIGNING AND
PROPERTY DELIVERY?
| APPLICATION
TO COUNCIL OF MINISTERS |
After
the contract of sale has been signed,
non-Cypriots are currently still
required to submit an application to the
Council of Ministers to obtain approval
to purchase a property in Cyprus. Your
lawyer will complete this application on
your behalf, and it is usually a mere
formality. It is expected that this
regulation will soon be abolished for EU
citizens. Your application must be
approved prior to transferring the title
deed to your name.
PRE-DELIVERY
PROPERTY SERVICES
During
this period your customer care
administrator will keep you updated on
all matters relating to your property.
We can send you photos, either in the
post or by e-mail, so you can see how
construction of your property is
progressing.
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We inform you about a wide
range of property services exclusively
available to you as a homeowner. These include
interior design, home furnishings, gardening
and property management, to name but a few.
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| TECHNICAL
PROPERTY SERVICES |
If
interior fixtures and finishes such as
tiles, bathroom suites and accessories
have not yet been installed in your
property when you purchase, we give you
the opportunity to make a selection
according to your personal preferences.
| TRANSFER
OF CONTRACTUAL INSTALLMENTS |
To protect you
against foreign exchange rate
fluctuations that may work against you
until the final payment is due, we can
refer you to foreign currency brokers
who can help you eliminate the risk.
In this way, you can precisely plan
the amounts you need to have
available, and thus enjoy complete
peace of mind.
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