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Purchase Process in Cyprus

As a former British colony, the buying process in Cyprus is similar to that in the UK.

• Once a property has been selected, an offer is made via the vendor’s estate agent. It is essential at this stage that the service of an independent lawyer is engaged to ascertain the conditions of sale.
• If the offer is accepted by the vendor, a nominal deposit of approximately 1% is made by the purchaser, to secure the property.
• The contract is then drawn up. Meanwhile, your lawyer will commence the necessary searches on the property.
• Within two months of signing, the contract will be sent to and recorded at the land registry.
• The buyer will then need to pay all fees and taxes within one month.
• The formality of an application for the right to acquire is then sent to the Council of Ministers in Cyprus.

Costs of a standard property purchase in Cyprus include the following:

• When you sign the contract you may be expected to pay a deposit of 20% - 30% of the purchase price.
• Legal fees will amount to around 0.75% of the purchase price.
• Stamp Duty will be payable on the purchase price of CYP 1.5 per thousand pounds up to CYP 100,000 and 2% over CYP 100,000.
• Transfer taxes on the purchase of a property are 3% on the first CYP 50,000; 5% on CYP 50,001-100,000; and 8% on CYP 100,001 and over.
• Annual property tax is charged at 2% - 3.5% of the market value of the property. In the case of individuals, however, the first CYP 100,000 of house value is tax exempt.
• Property sales are subject to Capital Gains tax at the rate of 20% on the gain, above CYP 10,000

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.