Buying property is always a responsible decision, that requires full comprehension of the law and regulations of the country you want to buy a housing in. This also applies to one of the most desirable places for investment – Cyprus.
The island is famous for its clean remarkable sea and hot sunny days almost all year. You will be able to find the perfect place for housing: stunning Limassol, archeological Paphos, historic Larnaca, etc.
This article will help you to comprehend all the nuances of buying property in Cyprus if you are curious about it.
Where to acquire property: in South or North Cyprus?
Housing prices in the south and north vary markedly. In the southern part the price is approximately €3000, while in the northern part it is €1500.
Southern Cyprus is still recovering from the economic crisis of 2013 (house prices fell by almost half). However, real estate here is still more costly than in the northern part.
It is also important to take into account the rate of house price growth in 2022:
We can conclude that the investment potential of Northern Cyprus is higher than that of Southern one, but it is important to take into account the risks and features of the northern part.
Risks to keep away from when acquiring real estate in Cyprus
Some matters you ought to bear in mind:
- Hidden commissions negotiated between an agent and vendor;
- All the relevant costs, which include taxes;
- Delivery of enrolment commission with written conditions;
- Signing the sales agreement with the previous assessment of housing;
- Concentration on the material contracts related to real estate;
- Guarantee that the housing is not the subject of a possession dispute.
Full comprehension of these matters will help you to keep away from the risks related to acquiring housing.
Important details about the acquiring a real estate in Cyprus
Here’s the instruction you have to bear in mind:
- Enrolment: The acquirer pays a specific cost for the trader to take the estate off the mart;
- Lawyer meeting: It is not obligatory, but highly recommended to appoint the local lawyer;
- Evaluation: The lawyer conducts the assessment of an estate;
- Agreement execution: The lawyer will check the sales agreements and help with negotiations;
- Enrolment of the CoS and the LRO: The maximum protection under the law will be provided for the acquirer;
- Allowance for purchase: Applies for non-EU residents;
- Conveyancing of title deeds: After the deeds are prepared, the acquirer and seller will visit the LRO to finalize the conveying.
Property taxes in Cyprus
If you eager to acquire housing in Cyprus, the taxes are another nuance you must bear in mind:
- Stamp tax: The acquirer commonly pays the duties that must be applied to the sales contract and related papers;
- Transfer fees: On the title enrolment day, the Land Registry will evaluate the mart value of the housing being acquired and charge the fees;
- VAT: The rate of 19% applies to the purchase costs of new real estates only. Nevertheless, it may be reduced under specific circumstances;
- Other expenses: You should remember about the cost of lodging a purchase contract, housing assessment costs, etc.
The tax implications should always be analyzed: hiring a local tax specialist is mandatory for a smooth process.
Conclusion
The full comprehension of the nuances when acquiring a housing is vital. Remember about all risks, rules, cultural features, and taxes.
By following all the local laws and rules, you will be able to finish the process without difficulties.
