Legal Restrictions on Foreign Ownership of Property in Cyprus
In Cyprus, foreign nationals are able to purchase property without restrictions. However, it is important to seek legal advice and conduct due diligence before making a purchase. Foreigners are required to have a valid residence permit to purchase property in Cyprus.
Average Property Prices in Cyprus
The average property price in Cyprus varies depending on location and type of property. According to the Central Bank of Cyprus, the average price of a property in 2020 was around €1,200 per square meter. However, prices can range from around €800 to €4,000 per square meter, depending on the location, size, and condition of the property.
Popular Locations to Buy Property in Cyprus
Currently, some of the most popular areas to buy property in Cyprus include Paphos, Limassol, and Nicosia. These areas offer a wide range of properties, from affordable apartments to luxury homes.
Upcoming Areas for Property Investment
Some upcoming areas that are becoming attractive options for property buyers include:
- Larnaca: A city located in the south of Cyprus, known for its beaches and growing tourism industry.
- Protaras: A resort town located in the east of Cyprus, known for its beaches and growing tourism industry.
- Polis: A town located in the northwest of Cyprus, known for its beaches and growing tourism industry.
New Trends in the Cyprus Property Market
In recent years, there has been an increase in demand for sustainable and eco-friendly homes. Additionally, more people are looking for properties with outdoor spaces, as well as homes that are suitable for working from home.
Is Buying Property a Good Investment in Cyprus?
Buying property can be a good investment in Cyprus, but it’s important to do your research and consider the specific market conditions in the area where you’re considering purchasing property. Generally speaking, property values tend to appreciate over time, and owning property can provide a steady income stream through rental income. However, it’s also important to consider the costs associated with owning property, such as property taxes, maintenance and repair costs, and mortgage payments.
Common Property Types in Cyprus
The most common types of properties in Cyprus include:
- Detached houses
- Semi-detached houses
- Beachfront/Waterfront Properties
- Rural properties
- Land only
It’s worth noting that Cyprus is a small island, so the variety of properties on offer is limited. However, there is a large variety of luxury properties on offer, including beachfront and waterfront properties.
Typical House Buying Procedure in Cyprus
Surveys/Inspections: Before making an offer on a property, it is important to have the property inspected by a professional surveyor to check for any structural issues or defects. Additionally, a title search should be conducted to ensure that the property is free of any legal issues or outstanding debts.
Making an Offer: Once the inspections and title search have been completed, and you have found a property you wish to purchase, you can make an offer to the seller through your real estate agent or directly with the seller. It is important to have a lawyer review the purchase agreement before signing.
Notary: A Notary Public is required for the transfer of the property ownership from the seller to the buyer. The notary will ensure that all legal requirements are met and will register the transfer of ownership with the Land Registry.
Exchange of Contracts: After the purchase agreement has been signed and all legal requirements have been met, the exchange of contracts will take place. This is when the buyer pays a deposit and the seller signs over the title deeds to the buyer.
Completion: The final step in the buying process is completion, also known as the transfer of the property. This is when the balance of the purchase price is paid to the seller and the buyer receives the keys to the property.
Finding a Reputable Lawyer
- Professional Organisation: It is advisable to use a lawyer who is a member of the Cyprus Bar Association.
- Cost: Lawyers in Cyprus typically charge by the hour, with rates ranging from €150 to €250 per hour.
- Contact details: The Cyprus Bar Association website (https://www.cyprusbarassociation.org/) has a directory of registered lawyers in Cyprus.
Pitfalls and Problems
- Due Diligence: It is important to conduct thorough due diligence on the property and the seller before making an offer. This includes checking for any outstanding debts or legal issues with the property.
- Title Deeds: Some properties in Cyprus may not have clear title deeds, which can cause issues during the buying process. It is important to have a lawyer conduct a thorough title search before making an offer on a property.
Purchasing Property Through a Company
- It is possible to purchase property through a company in Cyprus, but it is not common.
- It may be beneficial for tax purposes or for protecting assets.
- It is important to seek legal advice before doing so, as there may be additional legal requirements and fees associated with purchasing property through a company.