Buying Property in Cyprus

Cyprus maintains an effective land registry system in which all immovable property (a term that relates to land and buildings, trees and plantations, rivers, wells, and all rights relating to land and buildings) is registered. This system was established in Cyprus in 1875 by Lord Kitchener based on British standards and has been updated over the years making it the highly sophisticated and reliable system that it is today.

EU citizens have no restrictions on how many properties or pieces of land they can purchase freehold.

Non-EU citizens are entitled to freehold ownership of one villa, apartment or land up to a maximum size of 4014m.

Permission To Buy Property

The Council of Ministers is the body responsible for granting approval for a non-Cypriot to have a title deed transferred into their name, a technicality which is granted to more or less all legitimate buyers.  EU citizens with a permanent residency in Cyprus do not need this permission. This permit is required by the Land Registry Office in order to produce your title deed and the procedure is undertaken by your solicitor who will require the following documentation:

·          Bank reference

·          Character reference

·          Purchase agreement

·          Documentation confirming income/funds

·          Photocopy of your passport

Mortgage Finance

Most commercial banks in Cyprus offer mortgage facilities to local and foreign applicants to assist in the purchase of their property.

The base rate of interest charged is dictated by the Central Bank of Cyprus and currently stands at 4.5%.

The loan may be up to 60% of the value of the property and if the customer has a good credit rating then it may be raised to a maximum of 70%.

For a loan in foreign currency the maximum repayment period is normally 15 years and in Cyprus pounds 25 years.

Banks will ask you for the following documents/info:

·          Customer’s profile

·          Copy of your passport

·          Statement of existing debt (if any)

·          Reference letter from your bank

·          Evidence of income

·          Purchase agreement

·          Bank statements (last 3 months)

·          Payments already made on the property

·          Open and activate an account with the bank

Title Deeds

Title Deeds (also know as "Certificates of Registration of Immovable Property") are formal documents that serve as evidence of home ownership. Each piece of immovable property has an associated Title Deed which contains information such as its registered owner, its size, its location and the Lands Registry Office reference.

The transfer of ownership from the vendor to the purchaser is done at the Land Registry Office either by the buyer in person or by an appointed power of attorney.

Transfer Fees

Once the title deed has been issued the Land Registry Office will notify you and in order to obtain it you will be required to pay the transfer fees for your property. This is a one off payment for the transfer of freehold ownership into the buyer’s name. The amount of the fee is based on the scale below and the value of your property at the date of purchase.

Property Value (CYP£)                             Transfer Fee (%)

Up to 50,000                                                      3

50,001-100,000                                                  5

Over 100,000                                                     8

If the property is in joint names then the purchase value is divided equally which results in a reduced transfer fee.