Without a doubt, Cyprus is one of the most lucrative property investment areas in 2024. According to statistics, the real estate market in the country will overcome the level of $130 billion by 2028. The prices for property in Cyprus vary a lot — from around $200 thousand to millions of US dollars, with an average of $2,000 per square meter.
If one of your goals is to get an EU passport and citizenship in a country with a stable economy, tax benefits for businesses, and other advantages, buying a property in Cyprus for the sum of $350 thousand and more will be the right way. Those wondering about such an opportunity have come to the right place. Keep on reading this guide to check it out in more detail. Mind the gap!
How to Buy Property Cyprus as a Foreigner
As you can guess, your success depends on the target strategy. As a foreign investor, you have to know the local policies and legal framework to ensure the overall deal’s security and efficiency. Here is what the right mindset looks like.
Step 1. Property Cyprus Selection
You don’t have to visit the island in person. There are remote databases for interested immigrant investors to check. From villas to three-bed apartments, you can also consider commercial properties like offices, parking lots, and so on. Don’t forget to ensure the target building’s state and efficiency. For instance, you can request a so-called EEC — energy efficiency certificate. It will cost another $200 on average but let you know about the inner property’s construction, including its heating and cooling systems.
Step 2. Get the Cyprus Buy Properties Commission from the Government
If you don’t obtain a corresponding permit from the Cypriot authorities, you won’t be able to acquire any type of property in the country. Your first application will be forwarded to the Council of Ministers of Cyprus. Please note you won’t interact directly — this task will be fulfilled by your chosen seller. That’s why it is essential to compare different service providers. While both small and big developers have their ups and downs, it is a must to distinguish a renowned third party with a great reputation in the market.
Step 3. Open a Cypriot Bank Account
Once the documentation is ready and online application is permitted, consult with a local banking establishment of your choice. To stay on the safe side, hire a dedicated lawyer to assist you in the right management of your financial and legal deals. If you want to open a bank account in the country, your company’s record has to be open and clear. Without accounting records, your application won’t be accepted and completed.
The physical presence isn’t a must if a trusted and approved introducer recommends you to the target bank. As a foreigner, you will rely on the services of several middlemen to make your property purchase in Cyrpus successful.
Here are some of the requested documents:
- reference letter from another EU financial establishment;
- tax identification number;
- passport copy;
- files related to your source of wealth, etc.
Step 4. Enter a Preliminary Agreement
Purchasing property Cyprus is done in several installments, but everything starts with this preparation period. The local authorities will reserve the chosen real estate asset for two months, letting you fulfill all the requirements under the agreement. Please note that this stage keeps your prospective property protected from potential market changes and price fluctuations. What’s more, it won’t be resold or rented out by other interested parties.
Step 5. Complete a Down Payment
The first sum to invest varies a lot, depending on the asset’s value, agreement conditions, and much more. In most cases, the amount to spend for a down payment isn’t less than 10% of the apartment’s or house’s price. However, to get better investment terms in the long run, increasing the down payment sum won’t be a bad idea — you can add more to the maximum 30% sellers commonly require.
Stage 6. Finalize the Sale Agreement
Once the down payment is completed, you stick to your investment plan and satisfy other conditions to pay out for the remaining parts of the target property. Of course, the sum to cover will exclude the initial investment. To receive the documents as the target property’s owner, you will have to send all the files to the Cyprus Land Department.
With professional agents, it will be easier to navigate through hidden nuances of the Cyprus investment program and ensure your approach to collecting and applying applications and other documents is flawless. In this case, you can also benefit from individual incentives when cooperating with sellers and calculating the cost of the selected real estate on the island.
Buying Property in Cyprus: Tips and Recommendations
Let’s dive deeper into the process:
- One of the factors to pay attention to is the variety and scale of property taxes. The list of potential fees includes inheritance tax, municipality tax, immovable property ownership tax, and others.
- On the other hand, you will be able to use tax advantages like duty-free import of your belongings such as large pieces of furniture and even cars.
- Don’t forget that you won’t have to pay taxes several times — you won’t be taxed in Cyprus and your native land because of the Double Taxation treaties.
- Another aspect you should never underestimate is the due diligence and conveyancing stage. These procedures are crucial parts of the legal right transfer and getting the real estate you want without future downs.
- When you discuss the sale agreement, don’t hesitate to tell more about your vision. With the help of professional third parties, it will be faster to agree on the payment and deposit terms that satisfy you the most.
Wrapping It Up
At the end of the day, the more thorough your preparations are, the better the result. It isn’t enough to have money and invest in a Cyprus apartment to buy. By in-depth market analysis and understanding the differences between living in Larnaca, Limassol, and Paphos, for example, you will be able to predict the future value of your real estate.
