Cyprus Property Buying Guide
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:-
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 CYŁ5.00 in cash.
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.
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. Exchange control restrictions are no longer in force and it is no longer necessary to prove that property was purchased from External Funds.
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 Ministers 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.
Stamp Duty
A Stamp Duty of CYŁ1.50 per thousand is required on purchase contracts with a value of up to Ł100,000. The rate for amounts in excess of this is CYŁ2.00 per thousand. The Duty is due within 30 days of signing the Contract and is payable by the purchaser.
For example: If the purchase price is CYŁ130.000
The first CYŁ100.000 0.15% = CYŁ150
Next CYŁ30.000 0.2% = CYŁ60
Transfer of Property Fees
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.
Rate of Transfer Fees:
Up to CYŁ50,000 - 3%
Up to CYŁ50,000 - 100,000 - 5%
Over CYŁ100,000 - 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 CYŁ130,000, provided such property is in one name the transfer fee will be: 3% for the first CYŁ50,000 = CYŁ1,500 5% for CYŁ50,000 to CYŁ100,000 = CYŁ2,500 8% for CYŁ30,000 CYŁ2.400 Total Transfer Fee CYŁ6,400 Should the property be in joint names the transfer fee will be:- 3% for the first CYŁ50,000 X 2 = CYŁ100,000 = CYŁ3,000 5% for CYŁ30,000 = CYŁ1,500 Total Transfer Fee CYŁ4,500