Guide to buying property in Cyprus (2024)

FAQs

How difficult is it to buy property in Cyprus? ›

Most of the properties for sale in Northern Cyprus have very high risk involved for buyers, since ownership of the disputed properties there and the right to sell them remains contentious. Expats purchase real estate across four main cities in Southern Cyprus: Nicosia, Larnaca, Limassol, and Paphos.

If you purchase a Cypriot property, you'll be able to enjoy reduced income tax rates, as well as exemptions on capital gains and inheritance taxes. These benefits make Cyprus an appealing destination for investment opportunities through a property purchases.

Once you purchase a property in Cyprus you automatically have a right for a multi-visa for up to 5 years. This visa will allow you multiple entry for stay up to 180 days per year and up to 90 days within every 6 months period.

In March 2022, the average price per square meter of housing in Cyprus is 1894 €, according to Numbeo.com. The purchase of a home in the city center will cost more. In Limassol, the average price of an apartment is 250,000 €. A two-story villa with a private pool will cost about 1-2 million euros.

Cyprus property taxes and rates vary depending on which Municipality/Council the property is located. Municipality / village council taxes in Cyprus roughly range from about €90 to €300 annually, depending on the size of the property.

To qualify for the Cyprus Permanent Residency by Investment program, applicants are required to buy a first-time sale residential property or sets of properties to the minimum value of €300,000 (plus VAT, if applicable). First-time sale stands for new properties and not for resales.

Basic information about mortgages in Cyprus

The scheme of mortgage lending on the island is the same as in any other country. The borrower must make an initial payment, and the bank pays the seller the rest of the money. As a rule, the minimum down payment in Cyprus is 20% of the value of the property.

How much tax do I pay on a house sale in Cyprus? ›

Resident company. The sale of shares in a company that owns real estate situated in Cyprus is subject to capital gains tax at the rate of 20%. Upon the transfer of real estate, the seller is obliged to pay a levy of 0.40% to the Tax Department.

How much time does it take to buy a property in Cyprus? Typically, most conveyancing transactions in Cyprus take anywhere from 3 to 6 months. We conclude most of our straightforward transactions in around 30-45 days.

The Republic of Cyprus restricts selling properties to foreigners: a non-EU citizen can buy no more than two properties and need a permit to purchase them.

Paphos is the most popular destination on Cyprus for expats and PSS customers, and it's no surprise. Paphos offers a laid-back and relaxed lifestyle that is perfect if you are seeking a peaceful and stress-free environment.

If you like the sound of a laidback life, discover Larnaca. It is known as a retirement goldmine and is popular with expats who retire to Cyprus from all over Europe. Paphos is right on the coast and boasts beautiful architecture, wonderful harbours and lively locals. Plus, the proximity to the beach is a major plus.

However, until such measures are put in place, it is expected that the real estate market in Cyprus will remain stable, with prices continuing to reflect the demand from both domestic and international buyers.

Exemptions. The following disposals of immovable property are exempt from capital gains tax: Transfer upon death. Gifts between spouses, parents and children and relatives up to third degree of kindred.

Cyprus residents can get a 80% mortgage, EU residents are required to place a minimum deposit of 20% to 40%. For non-EU residnets, the minimum amount of deposit is usually 30% - 40% of the purchase price. Arrangement fee: All of the banks charge arrangement fees. Most charge 0.75% to 1.0% of the amount of the mortgage.

Cyprus is part of the EU, meaning you will have the same rights as other EU citizens. If you wish to stay longer than 90 days, you must register your stay at the Civil Registry and Migration Department and get a Registration Certificate (also known as a Yellow Slip).

You may enter the Republic of Cyprus for up to 90 days for tourism or business purposes without a visa. For stays longer than 90 days, you will need a temporary residency visa.

How do I move to Cyprus from USA? ›

The average salary in Cyprus is around 26,000 EUR/year or 28,727 USD/year per the April 2023 exchange rate. In this article, we'll explore more about this average salary rate, including the median salary and salary range.

The value of real estate sold in Cyprus during the first quarter of 2023 reached €1.7 billion, according to a report released on Monday by the Department of Land and Surveys.

Benefits. Permanent residency in Cyprus is valid for life. The whole family can apply to get a residence permit. A Permanent resident of Cyprus after completing five years (total of 1825 days) of legal stay in Cyprus is entitled to apply for Cyprus Citizenship.

Cyprus has the lowest corporate income taxation in the EU for resident companies, which is 12.5%. Non-tax residents do not pay this tax. If your annual taxable income is €19,500 or less, you are exempt from tax on personal income.

Cyprus PIT is imposed on the worldwide income of individuals who are tax residents in Cyprus. Individuals who are not tax residents of Cyprus are taxed only on certain types of income accrued or derived from sources in Cyprus.

The Larnaca free trade zone in Cyprus is the most well known free trade zone in the country and was founded by the Ministry of Commerce, Industry and Tourism, with the set objective of enabling export-oriented investments by creating an even more profitable business environment in the country.

Requirements for Cyprus Residency by Investment

You must make a €30,000 deposit into a bank in Cyprus. The money will be kept for three years. You must prove you have an annual income of at least €30,000 for yourself, and another €5,000 for every dependent (spouse and children).

You can travel to Cyprus for up to 90 days in any 180-day period without a visa. This applies if you travel as a tourist, to visit for family or friends, to attend business meetings, cultural or sports events, or for short-term studies or training.

If the property owner is not a tax resident in Cyprus, the rental income from real estate in Cyprus must be declared as “Cyprus-sourced income” in the country of tax residence. Important: Keep in mind that the VAT you pay when you purchase a property, determines if you are allowed to rent it out.

How much is a downpayment on 200000 property? ›

To purchase a $200,000 house, you need a down payment of at least $40,000 (20% of the home price) to avoid PMI on a conventional mortgage. If you're a first-time home buyer, you could save a smaller down payment of $10,000–20,000 (5–10%). But remember, that will drive up your monthly payment with PMI fees.

Purchasing property in Cyprus has a number of potential pitfalls. The British High Commission advises potential purchasers to exercise extreme caution when buying a property if the title deeds are not readily available, as it means your property could be at risk.

2.7 Capital Gains Taxation

The applicable rate is 20% and is applied on gains from the disposal of immovable property or gains from the disposal of shares that directly or indirectly own immovable property situated in Cyprus.

A real estate agent usually charges a 5% commission for a sale of the property, but if there is an exclusive agreement of exclusivity, the commission could drop up to 4%.

The real estate sector in Cyprus is poised for growth in 2023, with high demand for foreign buyers and a healthy financial environment. According to recent Cyprus news, property sales are expected to continue their upward trend, with thousands of properties available for buying a house or apartment.

Cyprus house prices grew 6.3% YoY in Sep 2022, following an increase of 4.7% YoY in the previous quarter. YoY growth data is updated quarterly, available from Mar 2007 to Sep 2022, with an average growth rate of 0.1%.

Do I need a visa to retire to Cyprus? Cyprus has no retirement visa, but you can apply for other types of permits: category F residence permit. temporary residence permit – the pink slip.

Any foreign national who wants to live in Cyprus has to obtain a Cyprus residence permit. The Cyprus residence permit is what allows foreigners to legally live in Cyprus for longer than three months.

Why is property so cheap in Cyprus? ›

No matter if your Cypriot or foreigner, you won't be paying this tax for simply buying a home in Cyprus. As we mentioned before, the government of Cyprus heavily regulates the costs of services. That's why you'll find cheap Cyprus property for sale that is still very high quality.

There may not be Americans living here yet, but there are plenty of foreigners… It's estimated that there are over 110,000 (out of 1.2 million) foreign residents on Cyprus, the largest groups being Greek, British, Romanian, and Bulgarian.

For retirees, the best option is the Category F residence permit, granted to persons with a secured annual income from outside Cyprus. The minimum is about EUR 10,000 annually, with an additional EUR 5,000 for each dependent family member. This type of residence permit does not give you the right to work.

Public healthcare in Cyprus is funded by taxes and administered by the Ministry of Health. Public healthcare is either free or low-cost for EU citizens. Private healthcare generally has affordable fees for everyone.

British expats are packing up and leaving Cyprus as the effects of the financial meltdown continue to be felt. Removals firms on the island have seen huge demand from people moving back to the UK, with immigration from the east helping replace those on their way out.

Peyia has countless beautiful, million euro homes for sale and recent purchases show that there is no shortage of buyers. Few people associate the words 'small town' with the words 'million euro villa' but in the case of Peyia, a small quiet town, million euro hillside homes are incredibly common.

Generally speaking, it is cheaper to travel in Northern Cyprus than it is to travel in the southern part of Cyprus. Car hire, resorts, and dining tend to be of better value in the north.

It is also possible to buy a house in Cyprus and get citizenship. A residency by property investment permit gives the holder the right to apply for citizenship after 5 years of actual stay in Cyprus, out of a total number of 7 years. The holder must stay a full number of 1825 days on the island (5 x 365).

A Permanent resident of Cyprus after completing five years (total of 1825 days) of legal stay in Cyprus is entitled to apply for Cyprus Citizenship. This is the naturalization scheme based on years of residence (M127). A residency card is obtained within two months through the fast-track process.

If you plan to visit the country for immigration purposes, an extended stay or for committing several visits to the country, a total period of which exceeds 90 days in a 180-day period, you must apply for a long-term visa by contacting the Civil Registry and Migration Department.

Does the 90 day rule apply to Cyprus? ›

You can travel to Cyprus for up to 90 days in any 180-day period without a visa. This applies if you travel as a tourist, to visit for family or friends, to attend business meetings, cultural or sports events, or for short-term studies or training.

Cyprus has a lot to offer for those wanting to enjoy their golden years in the sun. While the Mediterranean climate is a huge selling point, there's so much more to the island than just its weather. There are miles of sandy beaches, impressive mountains and it has a low cost of living – bonus!