|
|
|
How to Become a Property Owner in Cyprus |
|
|
| |
|
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
|
 |
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.
|
|
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. |
|
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.
|
|
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.
|
EASY
TERMS OF PAYMENT |
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. |
|
 |
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.
|
|
SOLICITOR’S
FEE |
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 |
|
CONTRACT
OF SALE |
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
|
 |
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
|
HOME
PROGRESS REPORT |
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. |
|
|
HOME
SERVICES |
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.
|
|
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.
|
 |
|
|
|
|
|
| |
|
|
|
|
|
