Are you having legal property problems abroad? Are you a member of any of the national property organisations-members of UIPI? Help is close at hand, throught the property owners organisation of the country where your problem lies, through UIPI and 
Cyprus facts sheet on real estate property
BUYING PROPERTY IN CYPRUS
Beginning the Search
Estate Agents in Cyprus are usually local to an area and will only have properties for sale within that area. They must be registered. The agents act on behalf the seller and are paid commission by the seller. If you do not wish to search through an agent you can find details of property for sale in Cyprus from promotional magazines published by Developers, or newspapers local or national (some have special property sections), or magazines that specialize in property. Information is also readily available on the internet through websites.
Area of Interest
The northern occupied side of the island is still not internationally recognized as an independent state by any other country except Turkey. Maybe in the not so distant future there will be a solution to this problem between the Greek and Turkish Cypriot communities. Buying property in the northern part may result in difficult legal procedures. You need legal advice and must be certain that the person from whom you are purchasing the property is the legal owner with the pre 1974 provenance. This is necessary to present the possibility of losing your property in the event of consequences resulting from legal measures taken against you or in the event of the solution to the Cyprus property question.
On the other hand buying property on the southern part is easy, safe and at the moment an advisable investment opportunity, because:
Cyprus, being a member of the EU since May 2004, is at the point where properties are competitively priced, living cost are still of the lowest in Europe, taxes are low and future price increases are expected as the country is moving towards entering the Euro-Zone.
Cyprus has over 320 days of sunshine per year !
Telecommunications are among the best globally. There is an excellent network of modern roads and 2 international airport.
Cyprus is a prized superpower, the 3rd largest Mediterranean island with a strategic position bridging three continents. Cyprus has a highly valued cultural heritage.
Purchasing the property
Once you have found a property that is suitable decide upon the price that you are willing to offer and make that offer to the vendor (directly or through the estate agent). If the offer is accepted by the vendor, you will be required to pay a reservation fee.
Making the Arrangements
The reservation fee (approximately 1%-2% of the price) will reserve the property for you for a limited time period, usually one month or as agreed. During this period you will have to make you searches (preferably through a lawyer that you will appoint) and prepare your payment method as well as get prepared to sign the Contract and prepare other legal papers regarding request to the Council of Ministers for the approval of your buying the property. The approval is always given to the EU citizens (for non-EU citizens this is also given but this takes up to six months).
How you will pay for your property
You can pay cash and that is very straightforward. Or you can re-mortgage your main home to raise the cash. Or you may finance your property with a mortgage from a Cyprus bank in the currency of your choice. It may involve higher setting up cost. You need to make sure that you have enough cash funds for the deposit and the legal fees and that you income is sufficient to afford the monthly cost of your mortgage.
Mortgage deposit
The minimum amount you need to provide as your deposit for a mortgage depends on your residency.
For Cyprus residents it is possible to arrange a 90% mortgage.
For EU residents minimum amount of deposit is 20% of the purchase price, and 25% or 30% is not unusual.
For residents of non EU countries, the minimum amount of the deposit is usually 30% of the purchase price. All banks charge arrangement fees. Most charge 0,75% to 1.0% of the amount of the mortgage. It is advisable to check.
Legal Fees
For any property be prepared to pay around 0.75% of the purchase price (something around CYP 700-1000). The Contract can and should be written in English. Your lawyer will check the title to the property to ensure that you will own what you are buying. If it is applicable he/she will make sure that a building license, if under construction, is provided. He/She will check if the property is free from mortgage. Also he/she will represent you and handle all the paperwork involved.
Singing the Contract
On the day of singing the contract you will be required to pay the deposit to the vendor. A date will be set by which the purchase will be completed. In case of property under construction there will be a schedule of payment dates following the usual 30% deposit on singing. There will be a Duty Stamp on the contract price.
It is advisable to register the Contract to the District Land Registry Office with in 60 days from the Contract date. Contracts cannot be registered if they are not stamped. After you have registered the contract you legally own the property and cannot be gazumped as the property has been taken off the market. The Land Registry System in Cyprus is very unique and accurate.
Completion of the purchase ? transfer of title deeds
Property in Cyprus is Freehold. You own the land or property absolutely. On the day when the least payments are made and assuming that you have already gone through the formality of obtaining the Council of Ministers consent you are ready to have the title transferred in your name. Transfer tax payable to the Land and Survey Department is to be paid on that day. Transfer tax is 3% of the Contract price up to the first CYP 50,000, 5% on the next CYP 50,000, i.e. up to CYP 100,000 AND 8% on the remainder.
If the property is bought in joint names the transfer fees are significantly less.
Property taxes and related topics
There are only small taxes on residential property. The local authorities, the Municipality, collects Municipal Tax which covers the cost of refuse collection and street lighting. There is also an annual Property Tax on land and residential property collected by the District authority. These taxes are of small amount and often insignificant.
Communal Charges (maintenance charges)
For those owning property as an apartment within a complex where there are common facilities there are maintance and service charges to pay. The charges will vary according to the size and quality of the complex.
Capital gains tax
Capital gains tax applies if you are selling any property. There is capital gains tax of 20% payable even if you sell your main home and will buy another. Calculating any tax due on the re-sale of a property is complicated and professional advice should be sought. The tax is applied to the difference between the sale price and that of the original purchase price offering some adjustments.
Other taxes
15% VAT (beginning 2007)
Beginning the Search
Estate Agents in Cyprus are usually local to an area and will only have properties for sale within that area. They must be registered. The agents act on behalf the seller and are paid commission by the seller. If you do not wish to search through an agent you can find details of property for sale in Cyprus from promotional magazines published by Developers, or newspapers local or national (some have special property sections), or magazines that specialize in property. Information is also readily available on the internet through websites.
Area of Interest
The northern occupied side of the island is still not internationally recognized as an independent state by any other country except Turkey. Maybe in the not so distant future there will be a solution to this problem between the Greek and Turkish Cypriot communities. Buying property in the northern part may result in difficult legal procedures. You need legal advice and must be certain that the person from whom you are purchasing the property is the legal owner with the pre 1974 provenance. This is necessary to present the possibility of losing your property in the event of consequences resulting from legal measures taken against you or in the event of the solution to the Cyprus property question.
On the other hand buying property on the southern part is easy, safe and at the moment an advisable investment opportunity, because:
Cyprus, being a member of the EU since May 2004, is at the point where properties are competitively priced, living cost are still of the lowest in Europe, taxes are low and future price increases are expected as the country is moving towards entering the Euro-Zone.
Cyprus has over 320 days of sunshine per year !
Telecommunications are among the best globally. There is an excellent network of modern roads and 2 international airport.
Cyprus is a prized superpower, the 3rd largest Mediterranean island with a strategic position bridging three continents. Cyprus has a highly valued cultural heritage.
Purchasing the property
Once you have found a property that is suitable decide upon the price that you are willing to offer and make that offer to the vendor (directly or through the estate agent). If the offer is accepted by the vendor, you will be required to pay a reservation fee.
Making the Arrangements
The reservation fee (approximately 1%-2% of the price) will reserve the property for you for a limited time period, usually one month or as agreed. During this period you will have to make you searches (preferably through a lawyer that you will appoint) and prepare your payment method as well as get prepared to sign the Contract and prepare other legal papers regarding request to the Council of Ministers for the approval of your buying the property. The approval is always given to the EU citizens (for non-EU citizens this is also given but this takes up to six months).
How you will pay for your property
You can pay cash and that is very straightforward. Or you can re-mortgage your main home to raise the cash. Or you may finance your property with a mortgage from a Cyprus bank in the currency of your choice. It may involve higher setting up cost. You need to make sure that you have enough cash funds for the deposit and the legal fees and that you income is sufficient to afford the monthly cost of your mortgage.
Mortgage deposit
The minimum amount you need to provide as your deposit for a mortgage depends on your residency.
For Cyprus residents it is possible to arrange a 90% mortgage.
For EU residents minimum amount of deposit is 20% of the purchase price, and 25% or 30% is not unusual.
For residents of non EU countries, the minimum amount of the deposit is usually 30% of the purchase price. All banks charge arrangement fees. Most charge 0,75% to 1.0% of the amount of the mortgage. It is advisable to check.
Legal Fees
For any property be prepared to pay around 0.75% of the purchase price (something around CYP 700-1000). The Contract can and should be written in English. Your lawyer will check the title to the property to ensure that you will own what you are buying. If it is applicable he/she will make sure that a building license, if under construction, is provided. He/She will check if the property is free from mortgage. Also he/she will represent you and handle all the paperwork involved.
Singing the Contract
On the day of singing the contract you will be required to pay the deposit to the vendor. A date will be set by which the purchase will be completed. In case of property under construction there will be a schedule of payment dates following the usual 30% deposit on singing. There will be a Duty Stamp on the contract price.
It is advisable to register the Contract to the District Land Registry Office with in 60 days from the Contract date. Contracts cannot be registered if they are not stamped. After you have registered the contract you legally own the property and cannot be gazumped as the property has been taken off the market. The Land Registry System in Cyprus is very unique and accurate.
Completion of the purchase ? transfer of title deeds
Property in Cyprus is Freehold. You own the land or property absolutely. On the day when the least payments are made and assuming that you have already gone through the formality of obtaining the Council of Ministers consent you are ready to have the title transferred in your name. Transfer tax payable to the Land and Survey Department is to be paid on that day. Transfer tax is 3% of the Contract price up to the first CYP 50,000, 5% on the next CYP 50,000, i.e. up to CYP 100,000 AND 8% on the remainder.
If the property is bought in joint names the transfer fees are significantly less.
Property taxes and related topics
There are only small taxes on residential property. The local authorities, the Municipality, collects Municipal Tax which covers the cost of refuse collection and street lighting. There is also an annual Property Tax on land and residential property collected by the District authority. These taxes are of small amount and often insignificant.
Communal Charges (maintenance charges)
For those owning property as an apartment within a complex where there are common facilities there are maintance and service charges to pay. The charges will vary according to the size and quality of the complex.
Capital gains tax
Capital gains tax applies if you are selling any property. There is capital gains tax of 20% payable even if you sell your main home and will buy another. Calculating any tax due on the re-sale of a property is complicated and professional advice should be sought. The tax is applied to the difference between the sale price and that of the original purchase price offering some adjustments.
Other taxes
15% VAT (beginning 2007)
Organized by 