Buying Cyprus property

You recently took a holiday in Cyprus and enjoyed it so much that you decided you want to put down more permanent roots on the island? Well your not alone. Since Cyprus joined the EU in 2004 there has been a building boom in response to a huge demand for property and has since placed itself on the map as a tourist destination.

Year after year thousands of visitors discover the magic of Cyprus. Many of these visitors will have thought to themselves that Cyprus is the "land of the milk and honey". And how right they have been thousands have made their dream of owning a property on Aphrodite's island come true.

Either as a permanent or holiday home Cyprus has always been considered as an ideal location. The booming property market compares favourably with tourist resorts worldwide. On our site we bring you a wealth of information about all aspects of buying property in Cyprus and associated topics.

In Cyprus, over 100 000 properties are owned by foreigners. The demand for properties is on the rise, especially since a number of new projects including new golf courses and marinas have been announced. Almost 80% of the demand is for sea view properties. The majority choose Paphos, whilst 18% Limassol and 16% Larnaca. Cyprus appeals to nationalities across the board and to people from all walks of life and all ages. Approximately 70% of the foreign buyers are British, 13% are Russian and 7% Greeks from Greece, whilst a small percentage are from Germany, Belgium, Sweden and France.

Purchasing property in Cyprus

There are no restrictions on Cypriots or individuals of Cypriot origin on purchasing immovable property in Cyprus. The same applies to EU citizens except for the time being permission has to be sought from the Cyprus government for a second home. This restriction however will be lifted as from the 1st May 2009.

Aliens on the other hand are granted permission to purchase one of the following:

- one apartment
- one house
- a building plot or land up to three donums, that is, 4014m2.

For aliens permission is to be sought from the District office in order to transfer immovable property in their name. This is a mere formality and easy to obtain provided the property is not intended for commercial purposes.

Define your needs and reasons for buying abroad

The list of reasons why people buy abroad is endless. Understand your own reasons and ask some questions before you start the search for your ideal home and making a final decision.

Personal use or investment?

If you buying for investment purposes you are likely to get some bargains in Cyprus. Many people buy with the intention of renting the property out or renovating and selling it. If you fall in this category have you considered the following:

- The tax implications of renting and selling property
- Management and maintenance
- Marketing and controlling bookings
- Rental payments
- When to sell

Obviously we can assist you with all of the above and you only need to look at our services to put your mind at ease.

Holiday home or establish a new permanent residence?
Yes you are correct. Why spend all the extra income on holiday trips and not buy a home away from home. Have you considered:-

- The management of the property when you are not there
- The cost of maintaining the property
- How to sell the property

You can get a very good idea by browsing through our website. You can engage our services to attend to all this on your behalf and will render advise all the way.

If you want to retire on beautiful Cyprus you will be welcomed with open arms. Have you considered:

- The tax implications of living abroad
- The service and cultural consequences
- How to start afresh with a business
- Preparing a back-up plan if it does not work out for the family.

You will find valuable information on Cyprus and fall in love with the island and its people. We can help you get around, find schools for the children and all you will need to settle down.

Size

Now that you own your own place on beautiful Cyprus you will realise how many friends, uncles and aunts you have. Consider purchasing something larger than you think you need now, if you can afford it, because it will pay for itself in the long-run.

If it's for a permanent home size is very important. For a holiday home size is not that important as you will only be staying there for a limited time each year. Concentrate on a property that is simple to maintain rather than spending too much time thinking about size.

Location

The location will depend on what you want out of the property.

Holiday home

If this is only for the family you can choose the location that suits you.

Investment

Select the town and local area very carefully. Do your homework and do it well. Speak to the locals and read the newspapers. See also what we have to say about some areas and which areas and towns attract more tourists. You will be amazed at the information you will find on our website.

Costs

You will find all the costs associated with purchasing a property in Cyprus on our website from legal fees to insurance. It is important to get the whole picture and not only the price tag of the house.

Financing

If you are not paying cash for the property we will assist you with getting the best possible mortgage to finance your purchase in Cyprus. Try to have the mortgage approved in principle before you agree to purchase or signing the contract. Banks in Cyprus will lend between 60% and 80% of the value of the property.

Taxes

If you are thinking of looking further into the idea of buying property in Cyprus, again you will find all the information on our website. Consider local property tax, Income tax, Capital Gains Tax, Inheritance Tax and the like.

Ownership structure

In your name, joint names or set up a company? We can advise you on the advantages and disadvantages.

Cyprus is no doubt the big success of the new EU states. Cyprus residential property displayed above average growth of around 15% per annum for the past several years. Looking at property as an income generating asset, the current income returns are between 5% and 8%. The percentage may however be higher depending on location and type of property.

What to buy?

You can buy a three bedroom house for about € 222,040 and a two bedroom comfortable flat for half that amount depending on the level of luxury obviously or you can opt for a villa on the golf course in the upper six-figure range. Whatever you are looking for the choice and price range in Cyprus are almost endless. There are also plenty of locations to chose from so don't just plunge in, take your time. There is then also the village house route too which many of ex-pats adore to move in and mingle with the local residents and partake and enjoy in the local tradition and customs. It is just too good to be true living in one of the villages just outside Paphos.

Whatever your decision our team of experts will advise and guide you all the way. What follows is a more detailed description of what Cyprus has to offer and some guidance for our property buyers.

Cyprus Off-plan properties

These properties are offered by developers' off-plan and very often before construction has started. The process is very easy and straightforward. This may appeal to people who don't have the time to wonder all over the island viewing and are also not concerned about the property design. Expect to take delivery of your property within 18-24 months. Often there may be two or three designs for you to choose from whilst you will be able to choose the finishes from the range provided by the developer.

Make sure that you considered and agreed with the developer what will be included in the property and in the purchase price. Will you have to pay extra for the air conditioning or for double glazing? Is there sufficient cupboards and storage space? What if you want to replace a single socket with a double one?

If you do not reside in Cyprus we as an independent company will monitor the progress of the construction for you, we will provide you with photographs and progress reports and in fact keep you up to date with the progress of your property. We will ensure that payments are paid in terms of the agreement and when due to the developer.

Cyprus resale property

The asking price will invariably be less than buying a new property direct from the developer off-plan. Expect an amount of around 20% depending on age, localty etc.

You will be able to see exactly what you are buying and see the view from the verandah or lounge. Transfer of the property shouldn't take more than a couple of weeks.

Inspect the property well as you may need to spend some money to repair and/or bring it upto your liking. Seek the advice of an independent surveyor who will carry out a survey for you. Ask and inspect the planning permission, building permit and building plans.

If there are no title deeds to the property as yet will the developer consent to you reselling it later without any fees payable to the developer?

Build your own

If you have the time on your side this may be the best option in that you can design your own house which can be unique and to your personal taste.

There are a number of Cyprus developers who will sell you the land and build your dream home for you. This way you have the best of both worlds. A Cyprus developer with experience and know how building your design home. This way you will have control of the design and finishes and more importantly of your finances. As opposed to the developer you may now opt to employ another contractor divorced from the developer.

Going this route will also save you money on the transfer tax as you will be taxed on the purchase price of the land and not the building included.

Again time has to be on your side to opt for this route but hey what are we here for. Give us a call. We can assist with rendering assistance on purchasing the plot, we will commission an architect and other professionals, and we will assist you with the appliances, shop for fixtures and fittings and much more.

Buying Land in Cyprus

Cyprus is divided into various zones for planning purposes. These include residential, agricultural, animal rearing, industrial, green belt, and tourist zones. Some zones limit or prohibit the construction of domestic dwellings. You must ensure that the land you buy is in an appropriate zone. The following will appear from the planning zone:

Build Factor: The maximum number of square metres that you are allowed to build expressed as a percentage of the land area.

The use: What nature of use is permitted

Height: The number of storeys allowed.

Site Coverage: The maximum area of the site that can be occupied by a building's ground floor expressed as a percentage of the land area.

The following points should be also borne into mind when buying land:

Detached property must have a gap of at least 3 metres from the end of the property to the boundary. Non-habitable buildings however, such as a garage, can be built on the boundary. If the property is next to a designated "green area", you are not permitted to have a covered building within 3 metres of the boundary abutting the green area.

Carob Trees are, protected and you will need permission and a license from the local council to remove them

If the land borders a water course then you may not be able to develop the site should this be judged likely to adversely affect it. Depending on the soil type this may affect the type and depth of the foundations and therefore the costs.

Consider the topography of the site. Steep slopes and the quality of the substratum will determine how the foundation are to be built. The building design will also be affected by this.

Some sites are, surprisingly, subject to flood restrictions so this again needs to be checked out with the local council. The following points should also be borne in mind when buying land:

- Electricity shouldn't be a problem. Getting it onto your property however can often be costly. Consult with the EAC District Officer in this regard.
- Check with the CYTA District officer to examine and advise you if you can get a telephone line.
- Access to your property should be uppermost in your mind. Check the Lands and Surveys Plan to see whether the piece of land abuts onto public access. If the land does not acquire a right of way over adjoining properties. You will have to apply to the Lands Office for this.

As a general rule the above issues raised do not apply to a building site. It is more common when you buy a plot of land or field.

When viewing land, make absolutely sure that what you are being shown is the land that is being sold. Ask the vendor for a copy of the Title Deed and the Lands Office Site Plan and then check that the sheet/plan/plot/references written on the Title Deed agree with those on the Site Plan.

Look at the Site Plan. From the plan you will locate its boundaries, shape and location. Go to the piece of land and identify roads, buildings, and other features shown on the Site Plan.

Walk away if the vendor is unable or unwilling to provide you with a copy of the Title Deed or the Lands Office Site Plan. The Title Deed will show the area of the plot and the planning zone in which it's located.

Having located the land that you wish to purchase it is imperative that you do a land search. You can carry out the search yourself by visiting the District Lands Office and Town Planning Office.

What must then follow is to find a registered architect and discuss your design with him.

Preliminary design and outline

Once the outline has been agreed, your architect will submit the plan, elevation and sectional drawing to the Planning Authority. The Planning Authority will then grant you Planning Permission for the property.

Whilst waiting for Planning Permission, your architect will produce a detailed design and the construction/structural engineer will prepare the structural design. (The architect controls the design and the construction engineer ensures that the design is structurally sound). Once Planning Permission has been granted, and any changes they require have been incorporated into the design, (you having approved the detailed drawings) the architect will engage the services of a quantity surveyor to produce Bills of Quantity setting out all the materials and quantities thereof to build the property.

The architect will now issue an "Invitation to Tender" to a number of registered and licensed building contractors and at the same time, he will also apply for a Building Permit.

On receipt of the Tenders you will analyze them and decide which one to use.

It may sound complex but it is not. We can guide and assist you throughout the process. Call us and we will address all your requirements.

Buying an apartment in Cyprus

There is an abundance of properties available for sale at any time all over Cyprus, the vast majority being very new. There is also a tendency to sell apartments off-plan, or during construction.

Cyprus Apartment prices are not uniform. They vary to a great extent with the location, the quality of the project and the town where they are situated.

Apartment re-sales have a sales price of approximately 20%- 25% less than new units, depending on the individual property's specific age and condition.

Terms of payment vary from developer to developer, but commonly these are as follows:

- On signing the sales agreement 15% of the total value
- During construction 80% of the total
- On delivery The balance of 5%.

In most cases, the owner requires a cash payment and the purchaser secures a local loan with repayment facilities.

- Location: Try to look around and choose a block in a good area. Of course what a "good" area is is relative and depends on various factors including personal judgment and taste. It is widely accepted, however, that a "good" area is one which is relatively central, not densely developed with apartments, more of a residential area, relatively quite (not on main road) and one which is close to schools and shops. Although the better the area the higher the price. If you have children, pay particular attention to the proximity of public open spaces, such as parks.

- The Apartment Block: We recommend a small block of apartments. A building accommodating a maximum of 15 -20 units is ideal. Larger blocks have problems primarily related to their management and lack of privacy. Bear in mind, however, that smaller blocks have a higher common service bill. Try to avoid buying an apartment on a block with shops on their ground floor, since these are usually the cause of nuisance.

- Accommodation: Avoid purchasing a studio type of accommodation (unless you are in a resort area) since they are more difficult to sell. Apartments with the higher demand are the average size three bedroom units (around 120-130 sq.m.) and the two bedroom (70-100 sq.m) ones. In resort areas the most marketable accommodation are the compact two and one bedroom apartments.

- Services: It is a common cause that it is difficult for co-owners to agree on the common servicing of the blocks. It is recommended, especially if you are buying in a large block, to opt to buy where the block has the lowest common service bill. Choose apartment blocks where the developer undertakes the management, at least for a period of time. Bear in mind that gardens and swimming pools will take up the main expense.

- The quality of construction: If the unit is not built, normally the developer's reputation and a visit to a previous project will give you an idea of what you can expect. Show a preference to blocks utilizing low maintenance materials; spritz finish to a block, as opposed to decoration is an advantage; the use of timber as opposed to plastic/ aluminium ones is a disadvantage; a poor quality lift will cause you major future difficulties etc.

Buying a village property in Cyprus

There has recently been an increasing tendency by locals and foreigners to purchase old village houses, which are subsequently renovated into modern residences.

Nowadays village properties however have become expensive and they amount, together with the renovations, in excess of what a new villa of the same size would cost. The best approach to buy a cottage is to visit the village of your choice and seek information and advice from the village muchtar (the chairman of the village parish). It is evident that the less popular the village is by foreigners, the lower the properties price.

Bargains can still be found at the remote villages of Paphos and those of Limassol and Larnaka.

- It is strongly suggested that before concluding a deal, you obtain a firm estimate of the renovations required, using the services of a qualified Q.S. or an architect. In particular, you must check who your neighbours are, since in tightly knit communities, such as the local villages, people have their own way of living and attitudes towards life.

- Check whether your neighbours keep any animals in their yard, since if they do, the smell may be unbearable. Check also the distance from the town, the access, whether there is a telephone service, the nearest doctor, the frequency of the local post, public transport etc.

- Bear in mind that the cottage may be eligible for an improvement grant from the Government, if it is of historic interest. Your architect can advise you on this.