Cyprus presents itself as a great holiday destination with the richness of its culture and the calmness of the landscape. The Mediterranean region is among the most relaxing places in Europe and allows people to relax and fine-tune themselves while remaining in harmony with the cycles of nature. With plenty of sunshine, scenic views, and calming atmosphere, it is one of the finest places to live on Earth.
That is one of the major reasons that the Real Estate Agency has seen a sudden rise and growth. More and more people are now willing and excited to move to the place with its exotic beaches and luxurious Islands.
If you are one of the many ambitious homeowners, who aspire and plan to have a home of your own in Cyprus or purchase any Cyprus property, there are multiple stages that you need to go through. In addition to the legal steps, there are multiple important considerations that you must make before buying a house in Cyprus. Real Estate Agents can help you a lot in buying your dream house.
Important Considerations:
Following are some important considerations you must make before buying your home in Cyprus.
1. Buy to Invest:
It is true that many people look for their dream houses and want to have a perfect house. However, you must look at the financial side of the property in Cyprus and invest in a valuable asset.
Buying a home that will appreciate in value can earn you significantly large sums of money in profits. So, whenever you are looking to buy a house in Cyprus or anywhere else in the world, it is better to compare the real estate prices of that area and see where it is headed.
2. The Life You Want:
Other than the financial side, it is important to listen to what your inner self says. Your home is the center of your lifestyle. Your neighborhood is going to be your permanent community. These are the people whom you will directly interact with. Moreover, the availability of facilities and resources is another important consideration.
So, before you finalize your new home, it would be much better if you take a deep breath and think about the life you want to have in your new home. Once you decide on your future lifestyle, you will be in a much better position to analyze the different Real Estate Options that you may have.
What are the Different Steps to Buy a House in Cyprus?
The process of buying a house in Cyprus is relatively simple. You just need to go through certain processes and steps to buy your new home.
Reserving your Home – Token Money:
Once you finalize a house for purchase, you need to make sure that you pay a small amount of money as a reservation fee or Token money. Once you pay this reservation fee, the house is reserved for you to pay the total money and close the deal.
During this period, the owner cannot sell the house to anyone else. This money can reside with your agent or can be directly paid to the owner in advance.
Legal Appointment:
The legal process is comprehensive and includes conditions of satisfaction, contract finalization, Registration, Tax payments, and other permission applications. Since the process can be tricky for a layman, it is better to hire a lawyer who may prepare contracts, inspect the conditions, and manage other legal proceedings.
So, Hiring a lawyer is an integral part of the process of buying your dream home.
Due Diligence:
During the due diligence process, your lawyer goes through all the documents to confirm the ownership of the previous homeowner and his legal right to sell the house. This process is important to confirm that there are no legal complications that may inhibit the sale of the house. This step of the process is crucial in eliminating any risks of fraud or loopholes.
Contract Signing and Stamp Duty:
Your lawyer prepares the contract of Sale (CoS), which includes all the details and conditions of the purchase. Lawyers from both sides thoroughly review this contract. It holds legal standing between the buyer and the seller and is signed to formalize and legalize the purchase process. After 30 days of contract signing, the buyer pays stamp duty as per Cyprus Law.
Reduced VAT Rate:
The standard VAT rate is about 19% of the property’s total price. However, the rate can come down to 5% if you meet certain terms and conditions. Your lawyer is responsible for preparing the application for a Reduced VAT rate.
Registration:
After the complete execution of the Contract of Sale, the contract is registered at the Land Registry Office. This is the official acknowledgment of the purchase process by the LRO. Once the CoS is lodged and registered, the new buyer receives all the legal ownership rights for the property and can resell the property.
Permission for Non-European People:
As per the Cyprus law, European Union citizens can purchase lands and real estate without any restrictions in Cyprus. However, if non-European people plan and want to purchase real estate in Cyprus, they must request permission to acquire immovable property in Cyprus. Your lawyer can put forward the application along with the CoS, and the permission is granted within a month.
Transfer of Title Deeds:
Title Deeds are transferred to new owners’ names once the buyer has paid all the sale prices and additional legal taxes to the concerned departments. Transfer fees are applicable at the procedure and range from 3% to 8%, depending on the property value. The minimum transfer fee is applied to properties valued at less than €85,000, while the maximum fee of 8% applies to properties with a value of more than €170,000.
Once the transfer process is complete, you are the new house’s official, legal, and rightful owner. These steps may sound complex to you, but a lawyer or a real estate agent can easily guide you through the intricacies and make life a whole lot easier for you.
Good luck with your quest for a New Home in Cyprus.
