How to Get a Mortgage for a Property in Cyprus (2024)

FAQs

Can I get a mortgage to buy a house in Cyprus? ›

The Bank will provide a mortgage in Cyprus. It is easiest to get a loan approval if your down payment is at least 50% of the property value.

The mortgage market in Cyprus is similar to other European countries and many applications have positive approval rates and here, you'll find out about the mortgage process, requirements, and risks of getting a mortgage in Cyprus.

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.

For that indicator, we provide data for Cyprus from November 2007 to March 2023. The average value for Cyprus during that period was 4.25 percent with a minimum of 1.65 percent in April 2021 and a maximum of 6.65 percent in November 2013.

Permission to acquire immovable property in Cyprus

Cypriots and EU citizens are entitled to buy immovable property without any restrictions. Non-EU citizens can buy immovable property, however, permission from the Council of Ministers is required.

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.

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.

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.

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.

Can I live in Cyprus if I buy a property? ›

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).

It is possible to get a mortgage in Cyprus not only for EU/EEA citizens, but even for foreigners. Cyprus rates can be from 1.9% to 7.5%, so for many buyers, mortgages are an excellent option when buying a home on the island.

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%.

The mortgage-to-rent agreement entails a minimum of 14-year payment duration, while borrowers could submit a proposal to acquire the property after five years. Beneficiaries over 65 will not be given a specific timeframe to pay off their mortgage.

As soon as you arrive in Cyprus on a student visa, you must apply at the Cyprus Migration Department for a temporary residence permit. This permit lets you legally live and study in Cyprus for over 90 days.

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.

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.

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.

Which area in Cyprus is best to buy property? ›

How do you know if the interest rate you're offered is good for you? A good personal loan interest rate depends on your credit score: 740 and above: Below 8% (look for loans for excellent credit) 670 to 739: Around 14% (look for loans for good credit)

United States. The United States boasts both the world's biggest national debt in terms of dollar amount and its largest economy, which resolves to a debt-to GDP ratio of approximately 128.13%.

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).

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.

Overall, the cheapest city to live in Cyprus is Paphos, with the most expensive being Limassol largely due to the high costs of rent and housing.

When registering a Title to secondary real estate, it is necessary to pay a state fee, which is called the Property transfer Fee and is calculated in the following way: From the first 85 thousand euros — 3%. From 85 thousand euros to 170 thousand euros — 5%. From the amount of over 175 thousand euros — 8%.

Advantages of a permanent residence permit in Cyprus: high standard of living, simplified taxation system, possibility of doing business. After 5 years, the investor will be able to obtain Cypriot citizenship and travel without a visa to 170 countries of the world, including Great Britain and the EU.

Which part of Cyprus is best to live? ›

A disadvantage of living in Cyprus is its lack of public transportation. While you may be able to get by without a car if you live in the center of Paphos, those residing further out will need a car. There is no train system on the island, so those wishing to make do on public transport will have to rely on buses.

Add to that, welcoming locals, sunshine, ancient history, and romance, and it's easy to see why Cyprus is quickly becoming a popular retirement destination for expats from around the globe.

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.

Permanent residence after 5 years: Those who stay in the country on a temporary visa for five years or more can apply for a permanent residence permit. Permanent residency by marriage: If you are moving to Cyprus because you are married to, or you plan to marry a Cypriot, you can apply for permanent residency.

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.

Η Eurobank Κύπρου διακρίθηκε με το βραβείο ”Best Private Bank in Cyprus“, για το 2021, από το έγκριτο διεθνές περιοδικό Euromoney, επικυρώνοντας το υψηλό επίπεδο των υπηρεσιών που προσφέρει και την ηγετική θέση που έχει εδραιώσει στον τομέα του Private Banking.

“We receive the award of the Best Bank in Cyprus in Private Banking for 2023 from the prestigious Euromoney magazine with great honour.

America Mortgages offers conforming loans to U.S. Expats living and working overseas. These loans are identical to walking into your local U.S. bank but very specific to earning your income abroad as an expat overseas.

Can I open a bank account in Cyprus as a foreigner? ›

Can A Foreigner Open A Bank Account In Cyprus? Yes, a foreigner can open a Cyprus bank account . . . even non-residents. Cypriot banks will still ask for proof of residence, but your address doesn't have to be in Cyprus.

Introduction. 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.

This means that they are likely to stay in Cyprus for the long term, and will not be quick to leave. As a result, if there is no intervention from the government, it is unlikely that property prices will decrease significantly in the near future.

How much costs housing in Cyprus in 2021. The price per square meter for a property in Cyprus ranges from €1,600 to €3,400.

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.

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.

Cyprus Bank Lending Rate was reported at 5.596 % pa in Mar 2023.

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.