Cyprus, with its Mediterranean charm and attractive tax policies, has become a hotspot for third-country nationals seeking property investment. Whether you’re considering a holiday home or a permanent residence, navigating the buying process is key.
Third-country nationals, those from outside the EU, are permitted to buy one property in Cyprus, typically a house, apartment, or plot of land. If you wish to purchase more, you’ll need special permission from the Council of Ministers. The property size is usually restricted to 4,014 m², though larger plots are allowed in certain cases, particularly for significant developments.
Once you’ve selected a property, it’s common to sign a reservation agreement and pay a small deposit of 1-5% to take the property off the market. This gives your legal team time to perform due diligence, checking for any outstanding debts or legal complications. It’s crucial to work with a reputable lawyer to avoid potential issues.
After due diligence is complete, the sale agreement is signed, and a larger deposit (typically 10-30%) is paid. The contract is then lodged with the Land Registry, protecting your interest in the property until the final transfer takes place.
For non-EU buyers, approval from the Council of Ministers is required. Though this process can take several months, it’s mostly a formality. You’ll need to provide personal details, information about the property, and your intended use of it.
Once approved, and the balance paid, the title deeds are transferred into your name at the Land Registry. In some cases, particularly with newly built properties, the deeds may take time to be issued, but you will still have proof of ownership.
Keep in mind that additional costs such as stamp duty, transfer fees, VAT (where applicable), and legal fees will add roughly 10-15% to the total property price. It’s essential to budget for these extra expenses.
Investing over €300,000 in property may also qualify you for Permanent Residency in Cyprus, further increasing the appeal for third-country nationals. With the right guidance and understanding of the process, buying property in Cyprus can be a smooth and rewarding experience.
