What follows is a brief guide to the technicalities of buying property in Cyprus :

These details are subject to change as Cyprus comes into line with EU procedures; however, having joined, exchange control restrictions no longer apply, so this is one less factor to consider.

Once you’ve signed a contract to purchase, if the premises aren’t intended as a permanent residence, EU citizens must make an application to the District Office. Although this approval takes a while, there’s no restriction on taking possession of your property. You can also re-sell during this time. It does not affect your inheritance rights.

Once the contract is signed and stamped, it must be sent to the Land Registry office within two months, together with payment of the stamp duty. This is a safety measure, blocking the property from being sold to anyone until the District Office’s approval is actually issued. This is when the Title Transfer Fee becomes payable.

Free independent information for Cyprus property buyers by Nigel Howarth. Nigel lives in Cyprus and is very active in the area of buying/selling property in Cyprus. Independent, committed, knowledgeable and caring. Read the latest Cyprus property news at: http://www.news.cyprus-property-buyers.com/

The way that the deeds of the property are dealt with is totally different from back home. The title deeds are originally issued in the name of the developer. If you buy from new, it takes anything from 3 years upwards for you to take possession of the deeds and you then pay the tax on the transfer. The amount paid is a percentage of the cost of the property, on a sliding scale.

When you buy a re-sale property, quite often the title deeds will already have been issued.

You MUST use a solicitor in Cyprus. We can, of course, give our recommendation, but it is up to you whether you take this. We will help you with all the formalities where possible, of course. Our aim to is to do everything possible to have a happy and successful sale for both the purchaser and the seller. Dr Panicos Kourides, Evi & Christia Papacleovoulou and Ms Ruth Hatfield have extensive experience, we find easy to work with, are accommodating and efficient and speak perfect English. Normally, you will grant your lawyer Power of Attorney, so that he/she can deal with everything here on your behalf without you having to be in Cyprus. Once everything is completed, you can cancel the Power of Attorney, but sometimes it’s handy to retain it, if you are not planning to live here permanently. It’s also a good idea for your lawyer to draw up your will in Cyprus – it does save a lot of hassle if anything unfortunate should happen.

Ownership of land is protected by the island’s very clear, British-based land registry system and historically, the issuing of the Title Deeds by the central authorities has taken three to four years. However, this is about to be speeded up because the Government has realised that it doesn’t get the Title Transfer Fee until it issues the Title Deeds. As a result, they are understandably keen to recoup all the back tax!

This tax, payable by the purchaser, is 0.15% up to Euros171,000 of value and then plus 0.2% for values in excess of this amount.

The Title Transfer Fee is payable by the purchaser on a graduated scale as follows :

However, if a property is bought in 2 or more names, the tax is significantly reduced.

This is calculated on the market value of the property on a scale as follows :

Most houses show a minimum value and the tax is negligible. Roughly, the IPT payable amounts yo only Euros 342-700 per year

Wrapping up:

These procedures are there to ensure that you are clear about your position and to ensure that you have a hassle-free experience of buying and owning a few years down the line. Generally, these laws are fair and no more complex than any other EU country and considerably more simple than some. All the property taxes put together represent a very small proportion of your actual purchase price.

Nobody likes long lists (apart from maybe Santa!) but once you’ve got the idea, it’s very simple, and of course, we’re always on hand to help you go through these stages successfully!