You must ask the Council of Ministers for approval to buy a property before engaging in a transaction, and title deeds won’t be transferred to you until permission is given. You’ll also need a phrase in the contract to specify what should happen if permission is not given, even though it is a formality and it is quite improbable that your application would be denied. The process of finalizing the application often takes several months to a year. Additionally, you won’t be able to purchase a stake in a property, rent or lease property, or buy a home in joint names with an unmarried partner.
How to purchase real estate as a foreigner in Cyprus
If you aren’t buying with cash, research mortgages and loans first to see how much money banks will be prepared to offer you before you start. then choose a local attorney. To ensure that your interests are protected, confirm that the lawyer is impartial toward the developer/vendor and estate agent engaged in the transaction. Then, you may use online property search tools like Rightmove Overseas. It’s crucial to visit a home in person after you’ve identified it to ensure that the condition meets your standards. Make an offer via the estate agent as soon as you are satisfied with the house you have found. Next, submit a written request for approval to acquire the property to the Council of Ministers. Transfer the monies and sign the sale agreement, which will also be signed by the vendor. Once approvals have been obtained and monies have been verified, the property will be registered in your name.
How to avoid possible mistakes while purchasing real estate in Cyprus
When purchasing a house, there are a few things to watch out for and precautions you can take to assist you to avoid mistakes. Developers would often take out a mortgage on land or property, for which you would be responsible if they went bankrupt and you had signed a contract to buy it. Before making a purchase, hire a private attorney to make sure there are no mortgages on the property. This will help you avoid problems in the future. Request a Land Search Certificate from the Land Registry through your attorney. Be advised that investing in real estate in northern Cyprus carries considerable risk. Due to claims of ownership resulting from those who were relocated in 1974, ownership of property is often challenged in the north. Buying such a property can lead to legal action. Therefore, it is a good idea to rent first and familiarize yourself with the local market if you are eager to purchase in the north of the island. A suitable kind of irrefutable should be obtained for your property with the assistance of a competent attorney.
Obtaining a mortgage or bank loan in Cyprus
The good news is that you may be able to convince a Cypriot bank to grant you money if you want a mortgage to assist you in purchasing a home in Cyprus. You will need a skilled, international mortgage broker that can find you the best mortgage for your circumstances since it is also connected with some risk (especially property in north Cyprus). When you’re prepared to apply, be prepared to provide evidence that you’re a low-risk borrower. Be ready to provide your passport as identification. If you’re self-employed, you’ll also need to provide evidence of your income, such as recent pay stubs, personal bank statements, or audited accounts. You must also provide evidence of any additional savings, such as those in the form of stocks, bonds, or pension funds. The lender will next want a report on the value of the property. When the lender determines that everything is in order regarding your finances and the property in issue, your mortgage application may be granted. When your application has been accepted, inform your lender of the date when the money will be issued.
Fees and taxes
To appropriately plan your spending for your purchase, consider the following extra costs:
- 3-8% in transfer fees
- Based on the price of the property, stamp duty might range from 0.15% to 0.20%
- VAT – 19%
- 0.10–1% in legal fees
You shouldn’t typically have to pay the estate agent costs since the seller usually handles them.
