Purchasing a Property in the Republic of Cyprus
Cyprus is a favourite destination for Britons, especially those looking to retire to warmer climates. Purchasing a property in Cyprus is relatively straight forwards as long as you keep the following in mind.
The first thing that you will notice is that all of the estate agents are very pushy and are very keen to get your contact details, such as mobile number etc. I would be very careful as some of these estate agents can be very annoying, some in fact will blatantly harass you! With some commissions running at 10% no wonder that
1. there are so many estate agents.
2. They are so pushy.
The second thing that you will notice is that all the properties that you spotted whilst browsing the internet have all been sold but they have some better ones for a better price! On a recent visit I found this out, I was planning on spending £150,000 on a property in either Paphos, Limasol, Larnaca or Protoras. On arrival at one of the estate agents I was greeted and then asked "how much do you want to spend", I had a £50,000 deposit and so wished to spend £150,000 (£100,000 of which would of been a mortgage), Their response was " you can get a nice apartment for that much": This was not the response I was expecting as from all the properties I had viewed on the internet there were lots of 3 bedroom villas with a private pool for just under £150,000.
It turns out that all of these properties have been sold, another eye opener and thing to be aware of is that the websites that are often .co.uk addresses list their properties in £'s sterling (GBP) but are actually in Cypriot pounds which makes the prices 20% dearer immediately! You are also going to have to pay a few percent to get your British money changed to Cypriot money for the deposit.
Cypriots or people of Cypriot origin are allowed to purchase immovable property in Cyprus with no restrictions at all.
EU citizens are free to purchase one Home in Cyprus as long as the building plot or land is less than three donums (4,014m2), but there is a restriction for a second home and special permission has to be granted by the Cypriot government. One way to overcome this is to purchase the property through a Limited Company. This also offers Tax advantages as Tax is lower on Limited companies than it is on individuals.
You cannot purchase a property in Cyprus if you have a criminal record.
When you find your ideal property you should make an offer and if it is accepted give a deposit, which is normally a nominal amount (between £1000 and £2000 CYP) this will bind the owner and the market will be taken off the market at the price agreed. This is legally binding and so there is no gazumping!
After finding your ideal property you will probably need to arrange finance, which can be arranged at most Cypriot banks Currently there are not many UK banks that will lend money for purchasing property in Cyprus.
Cypriot banks will lend you 2/3 of the price of the property, hence if you have £50,000 deposit the bank will lend you £100,000 as long as you meet their criteria. Here is what is needed to apply for a Cypriot Mortgage
You will need to find a solicitor to represent you, this can cost between £800 and £1200 CYP. Contracts will then be drawn up by your solicitor (this should only take a few days). A deposit of 20%-30% of the purchase price will then need to be paid. The remainder is paid in accordance of the terms agreed with the seller.
Buying property in Cyprus
