What to Know Before You Buy

Although the home buying process in Cyprus is far from complicated, there are a few things to keep in mind when going through the process. Things start with understanding how the Land Registry Department operates. Established in 1875, this department works to streamline the home purchasing process in Cyprus. The ball starts rolling by submitting a written application to the Council of Ministers for approval. This requirement need only be met by non-Cypriot buyers. The application must be submitted within a suitable time frame following signing a purchase agreement. Once the application has been submitted, the potential buyer may take possession of the property with certain restrictions set in place until approval is granted.

Financing and Fees Involved in Purchase Process

Most of the financial institutions housed in Cyprus can provide financing for a new home purchase. There is also the opportunity to obtain financing from international financial institutions. This may be the case for an outside buyer who does not reside in Cyprus. When using an institution within Cyprus, interest rates average around 5.5% currently. These rates are set and monitored by the Central Bank of Cyprus. Traditional mortgage plans provide for a 10 year repayment period. For deals made in Cyprus pounds currency denominations extend the repayment period up to a maximum 25 years.

It is advisable to have legal council look over all relate home purchasing paperwork and the overall process before signing on the dotted line. As expected, there are fees associated with this service. These fees average between £800 and £1000 and are payable when all contract papers have been signed.

In addition to the legal fees, there are numerous other fees associated with the home buying process. Not all fees are going to fall on the buyer’s shoulders. A seller is going to be responsible for a portion of the fees as well. One such fee is the stamp duty that is charged at 1.5 per thousand of the house vale up to £100,000. If a purchase price exceeds this amount, the price goes up to 2.0 per thousand of the house value. This fee is payable when all contract sale papers have been signed.

Following the Council of Ministers acceptance of a submitted home buying application, fees will be incurred to transfer all related title documentation to the new owner. These fees are charged by the Land Registry Office and are payable with 3 to 5 years after delivery and occupancy of the new home. The fees are standard and figured based on the current market value of the home. When the home value falls below £50000, the associated fee is 3% of the purchase price. For homes falling within the £50001 to £100000 range, the fee is 5%. Anything over £100000 is assessed a fee equal to 8% of the purchase price.

Cyprus Property Info