A Guide to Buying Property in Cyprus

Buying property in Cyprus is a straightforward process and as your chosen real estate agents, we will be with you every step of the way to advise you and ensure the process runs smoothly.

Before embarking on your Cyprus property search, it is advisable to take the following points into account:

  • Preferred location
  • Realistic budget
  • Type of property and whether you prefer resale or a new build / custom built property
  • Is the property for investment purposes? If so we can advise you on the best options available to you

What happens after I find my ideal property?

  • Once you have found your ideal property and negotiations have been agreed, you will need to pay a deposit, usually between 1% to 2% of the agreed price, to the owner in order to reserve the property, take it off the market and secure it at the price agreed. This is legally binding and is held by your lawyer or estate agent until the necessary checks have been made and contracts are signed.
  • The relevant searches are made, contracts are exchanged and are signed by both parties. At this point the buyer pays an agreed amount, (usually between 20% to 30% of the property value), and the sale is recorded at the Land Registry Department. This protects the buyer and prevents the seller from reselling the property.
  • And finally on the completion date, agreed as per the contracts exchanged, you pay the balance outstanding from the total purchase price and the title deed is transferred to your name at the Land Registry Department. On the same day the buyer will pay the transfer fees, or VAT, whichever is applicable. The keys are handed to you and arrangements are made for the utility bills to be transferred to your name.
  • Please note that title deeds are not available on the completion date of a new build / off plan property. The developer will notify you when these are ready.

Stamp Duty

This is paid once the sales contract has been signed by all parties. The costs are as follows:

  • The first €5,000 = 0%
  • €5,001 – €170,000 = 0.15%
  • Over €170,000 = 0.20%

Example: Purchase Price: €400.000

  • €5,000 @ 0% = €0
  • €170,000 @ 0.15% = €255
  • €225,000 @ 0.20% = €450
  • Total Stamp Duty = €705

Transfer Fees

The property will be transferred into the new owner’s name and new documents (title deeds) are produced by the Land Registry Department, who will charge transfer fees based on the value of the property at the time of purchase.

  • Value up to €85,430 = 3%
  • €85,431 – €170,860 = 5%
  • €170,861 & above = 8%

Notes: There are exemptions from transfer fees, for instance when a transaction is subject to VAT such as a new build property. 

Reduced transfer fees are applied when purchasing in joint names, (i.e when purchasing as a couple).

VAT on Property

VAT is not applied to resale properties.

VAT is applied to new build property at a rate of 19%. However, if this is your first property purchase in Cyprus, then you will be entitled to pay only 5% VAT on a set amount of square metres.

VAT on Plots of Land

With regards to buying plots of land, VAT can be 0% to 5% up to 19%. There are different scenarios which may affect both the seller and the buyer when it comes to paying VAT. Please see examples below:

  • If you are purchasing land through a registered company, 19% VAT is added to the sales price. If the buyer is purchasing this land for their main private residence, 14% VAT can be claimed once the property has been built and the owners have resided in it for 6 months.
  • If the buyer purchases land through a private seller and the seller has not sold property in Cyprus for 4 to 5 years, then the VAT is 0%. However, if the seller has sold property in Cyprus within the last 4 to 5 years then 19% VAT applies.
  • VAT is not applicable on agricultural land
  • No VAT is payable when purchasing a plot of land which includes an old building as it is considered a resale property.

There are other examples regarding the final cost of VAT a buyer or seller pays. Please contact us for more information concerning the plot you are interested in purchasing so we can advise you further.

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