The best way to make a decision such as whether to invest in property in Cyprus for permanent, retirement or holiday home purposes is to hold all the facts. The system here in Cyprus is similar to that of the UK, for this reason it is recommended to follow all the usual safe guards as would be expected in Britain.
There are, however, a few differences:
Non-Cypriots need permission from the council of ministers to buy property in Cyprus.
This is a formality and can be applied for anytime after signing of the Contract of Sale.
It normally takes about 6-8 months to be issued. In the meantime, the purchaser can buy the property and live in it or rent it out while waiting for the application to be approved; see section
Here is a step by step breakdown of the buying process:
Stage 1) After the signing of the Deed of Deposit and Reservation you will need to pay the deposit to your lawyer.
Stage 2)
Your lawyer will then send you a Client Care letter setting out their terms of engagement. In order for the lawyer to proceed on your behalf, you will need to sign a copy of this letter and return in to the lawyer together with the following:
A photocopy of the page of your passport showing your photograph and personal details
Proof of your residential address i.e. photocopy of current utility account (showing your address)
Contact telephone / fax numbers and email addresses
Stage 3)
Under current legislation, non-Cypriot citizens cannot own and therefore accept the registration of property in their name without the prior permission of the District Officer.
This is a formality (for EU member citizens) but can take a few months to obtain.
The relevant permission does not need to be obtained prior to you signing the Agreement for the purchase of the property.
However, as the lawyer will need to make a written application to the District Officer on your behalf, it is important for you to provide the following information at this stage:
Occupation
Marital status
Number and ages of any children
Religion
Approximate annual income
Details of capital in bank (most recent statement to be attached)
Details of other property owned both in country of residence and abroad
Dates of any previous visits to Cyprus
Stage 4)
The Contract of Sale (“the Agreement”) can then be prepared.
The Agreement will be sent to you (preferably by fax or email) for your approval.
Once you have approved the Agreement it can be signed by all parties.
As the terms of the Agreement are governed by the Law of Cyprus, it is advisable that the Agreement is signed in Cyprus in order for your lawyer to ensure it is correctly executed and therefore valid.
Therefore, if you are not able to be present in Cyprus for the signing of the Agreement, it is advisable that you grant a General Power of Attorney to your lawyers. This will enable them to sign the Agreement on your behalf when they receive your instructions to proceed with the purchase.
You should inform your Lawyer as soon as possible if you wish to grant a General Power of Attorney in their favor.
The document will then be sent to you for signing in the presence of a Notary. Once the document has been signed, you will need to ask the Notary to fax a copy of the signed document together with a certified copy of your passport to your lawyer in Cyprus.
The original document will be sent by the Notary to the Foreign Office for Legislation, through the Apostille procedure. This is the process by which the signature and seal of the Notary are authenticated.
Once the document has been returned to you by the Foreign Office you will need to forward this to your lawyer in Cyprus.
You can obtain details of your nearest Notary by either telephoning a local firm of Solicitors or from the website of the Notaries Society:-
Stage 5)
Once the Agreement has been signed by all parties and the relevant payment made to the Developer under the terms of the Agreement, your lawyer will take it to the local Tax Office where the stamp duty will be paid and the revenue stamps placed on the original document.
The stamp duty is payable within one month from the date of signing the Agreement otherwise a fine is imposed escalating day by day.
Your lawyer will then send you a copy of the Agreement for your retention.
Stage 6)
Your lawyer will then file the original Agreement with the Land Registry. Once a Contract of Sale is filed with the Land Registry and once certain conditions are fulfilled, the buyers may apply to Court for the transfer of the Title of the property in question in his name thus specifically enforcing the terms of the Agreement.
Stage 7)
Under the terms of the Agreement you are required to make payments to the Developer at various stages of the construction of the property.
Your lawyer will inform you when the relevant architect’s certificate has been issued verifying that the work has been completed satisfactorily. You will then make payment to your lawyer who will forward this to the Developer and ensure that a receipt is issued.
Stage 8)
When the relevant building work has been completed satisfactorily, and a Completion Certificate issued by the District Office, and you are in receipt of the letter of approval to own property in Cyprus, the application for the transfer of Title of the property into your name can be made.
The following information is offered as a general guide about property investment in Cyprus.
We collaborate with the leading legal advisors in Cyprus, offering you total peace of mind when making your decision, we can even offer you half an hour of non biased advice with one of our legal experts in the field of property purchase; FREE OF CHARGE.
In the submenu's on the left we have detailed ALL the information you need to know concerning buying property in Cyprus. If you have a specific enquiry and would like some direct information please contact us giving as much information as you can as to the enquiry and we will forward information from our reputable legal associates by return.
REMEMBER we are here to make the transition as easy as possible and believe strongly in advising our clients with accurate up to date information at all times.
IMPORTANT: AS FROM THE 1ST OF MAY 2004, EU CITIZENS ARE NOT REQUIRED TO SEEK PERMISSION FROM THE COUNCIL OF MINISTERS TO PURCHASE PROPERTY IN CYPRUS. EU NATIONALS ARE NOW CONSIDERED EQUALS TO CYPRIOTS.
