For many years Cyprus has been attracting people from all over the world and not only as a seaside paradise for summer vacations, but also as a safe country with high standards of education and healthcare. Besides, low corporation tax for Cyprus-registered companies means less tax burden.
It is a big lump of money, no matter how high the inflation is; therefore, neither the main applicant nor their family members are required to learn Greek or local customs and traditions, nor are they required to live in the country all the time.
We will summarise it for you where and how to buy a house or an apartment and which pitfalls to be aware of. We will start with the biggest pitfall of all.
After Turkish occupation of a part of the island in the 1970s they formed the Turkish Republic of Northern Cyprus not recognised by the UN. If you are looking into buying a property there, because offers can be very appealing indeed, do not forget that the original owner who had to flee their home, or their descendants, would never recognise as legal a deal signed between you and whoever occupies their house at that moment. That is why we would not even consider the northern part of Cyprus though many other legal firms could try and persuade you otherwise.
Now that we are talking only about the southern part of Cyprus, the safest way to purchase real estate and minimise risks would be getting an independent lawyer to help you with it. We say independent, because they must have no connection to a property you are interested in or a developer if you intend to invest in an off-plan. An expert lawyer will carefully check a purchase agreement and title deeds and enquire if there is any encumbrance. They would be with you from A to Z until transfer of ownership.
First of all, non-EU nationals purchasing real estate in Cyprus must be approved by the local Council of Ministers. Then a buyer has 1 month after the purchase to pop into a tax office and pay stamp duty. Late payers would be fined.
You have two months after signing a purchase agreement to go to a local land registry and register your title.
Additional costs normally include legal and surveyor’s costs, stamp duty charge and land registry fees. In total they would amount to around 10% of the purchase price.
Prices would vary based on the location of a house or a flat, and your choice should be based on how you intend to use the property in the future. Start by answering for yourself, Will it be a holiday home or your permanent residence if you decide to move to the island?
If you do not plan to live in Cyprus all year round, we recommend considering popular touristic places such as Ayia Napa, Protaras and Paralimni. They are bursting with life during peak season and go quite in winter.
Limassol is one of the most popular choices of foreign investors because it offers a perfect mix of a resort with a dynamic business centre where it is easy to do business. At the same time this drives real estate prices in Limassol up which causes many people to come here only to work while living in a laid-back and cheaper nearby Paphos.
Cypriot capital Nicosia is located in the central part of the island and has no access to the sea. Though it is not a resort like we all imagine it, tourists still come in big numbers to appreciate ancient architecture and visit museums. Nicosia should be your first choice if you want to relocate to Cyprus, have access to good education, work and do business.
Last but not the least is Larnaca, a southern seaport with its own airport. Properties are still cheaper here than in Limassol; however, experts predict that it is not going to stay like this forever. Do not miss your chance and buy in Larnaca.
You must have noticed, that though Cyprus is small there are property locations that would satisfy any investor. Distances between the cities and towns are not big. Got tired of the capital Nicosia? 50 minutes by car and you are in Larnaca. Moreover, do not forget that a European passport is your ticket to the world with visa-free travel to 166 countries and right to live in any EU state.
No matter what your plans are, move to Cyprus for good or buy a holiday home, register a company in Cyprus or use it as a safe haven, Cyprus has it all and offers a lot of opportunities to everyone.
Our team would be happy to assist you with the property search in Cyprus, preparation and formalisation of paperwork necessary for obtaining Cyprus residence and then Cyprus citizenship.
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
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