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Buying a property in Cyprus

//Buying a property in Cyprus

Buying a property in Cyprus

If you’re looking for investment opportunities for buying properties in Cyprus, you need to take into consideration several factors. These aspects can make the deal more or less advantageous according to the plans of the buyer of any property for sale in Cyprus.

But even before getting into those factors, the first thing anyone interested in the property for sale in Cyprus must know: since 1974, the island is divided into two parts;

⦁ The Southern part, which is the Greek side and is legally a part of the European Union.
⦁ The Northern part, occupied by Turkish since 1974, is not part of the EU as well as it’s not recognized by the United Nations.
⦁ Deed titles may be restored to the original owners of the land before 1974 making buyer lose their investment.

This factor makes it kind of legally complicated to buy property in Cyprus if you’re interested in the Northern part. Nevertheless, investing in Cyprus’ southern area is completely possible and, with a bit of information, actually very convenient.

If you’re interested in Cyprus’ real state then this guide will be of great use for you to make a decision and get the most out of your investment.

Planning to buy a property in Cyprus?

In Cyprus, the rules are very similar to the UK because they have a special understanding and a particular relationship between the two countries. Actually, many British have already bought properties there. Why is this important? Because buying homes in Cyprus also follows the British guidelines, which make it really easy and straightforward.

To start planning where to buy and what property sales to take, the first step is you ask yourself these three questions:

⦁ Why are you buying the property? As an investment, for retiring, for moving in…
⦁ What do you plan to do there? Host family and friends, solo time, couple time, work…
⦁ What factors are more important to you? Budget, location, entertainment nearby, access…

As all these conditions vary greatly depending on different factors, it’s important that you get clear on what you want or you may end with a bad deal.

Popular property locations for investing in Cyprus

As a small island, it’s very common to find completely different experiences in location really nearby. One good example is finding rural villages right next to a great and luxurious resort complex. That’s why it’s so important to be clear about the kind of environment we want to have around before buying a property in Cyprus. The most common places are:

Paphos

Paphos has it all for tastes; you can find regions with resort life such as Kato, which we would say is the most developed part of this area. There you’ll find everything that happens in Paphos and all the fun vacation style.

For a most rural fun still with lots of commodities, then you can find property sales in Coral Bay which is a bit apart from the noisy town but still have lots of tavern style establishments.

For a bit fresher atmosphere, still in Paphos area, you can find Tala and Peyia. There you’ll find still beach sight but with a more hill climate.

But if you’re thinking about investment opportunities for a more rural and out-of-the-beach area, you can still find all the facilities and commodities in Konia or Anavargos. These villages, located to the east of Paphos offer a more rural entertainment.

Finally, if you want the most picturesque landscape and the fresher air from Paphos then point your investment research to Polis. This is a bit apart from the city and the other areas but that’s exactly why it offers a more natural contact; north-Paphos coasts are crystal water and you can enjoy a view of a natural reservation from the beautiful harbor.

PLUS: Paphos has the great advantage that it counts with its own airport.

Larnaca

Places to the complete opposite side of the island, Larnaca, a growing city that has few to envy to Paphos. It also offers great beaches and some luxury facilities, but the main point on this area is high-end shopping. Also, when it comes to apartments for sale, this is one of the regions with the best investment opportunities.

For finding the wild landscape in this region, you will need to go to Pervolia or Oroklini, where properties for sale are more Cypriot typical style. There’re no resorts or hotel complexes in those areas but you still can find a very tourist-friendly environment.

PLUS: main international Cyprus’ airport is located in Larnaca

Limassol

If partying is your style, then probably Limassol will be the perfect place for your invest in Cyprus. Very famous for its Carnival and winery festival, it offers a series of entertainment facilities such as restaurants, bars, and shopping places. All these without forgetting the luxury and highly developed complexes.

You can find resorts with a sea view in the famous Aphrodite Hills (in which shores goddess Aphrodite supposedly was born). For a more relaxing and chill entertainment in Limassol, you can go to Pissouri which is an excellent area for retirement houses for sale in Cyprus as its really quite and includes golf playing opportunities in a peaceful environment.

Emiri, Episkopi, and Kolossi offer a more village environment which is great for having a more quiet property that’s still only 10 minutes from the party zone.

PLUS: Limassol is right in the middle between Larnaca and Paphos so it’s fairly near both national airports.

Ayia Napa

For a less luxury but more festive zone, the party town Ayia Napa is the place. Excellent for vacation property purchases but not so much for working property, this region offers a good place for young couples or people who want to have a great time at a cheaper price. Property investment opportunities in this are quite affordable.

PLUS: if you’re interested in the Turkish side of Cyprus, Ayia Napa is in the vicinity of Famagusta, the nearer southern city to the Turkish side.

Troodos Mountains

If you’re looking for a calm and colder resting property for sale in Cyprus, maybe Troodos Mountains is the best choice.

With a less humid atmosphere, you can enjoy walking through the villages and tavernas even while summer. Also, you can enjoy cold during spring and winter, being able to ski during the coldest season. For nature lovers, the vineyards and orchards on the area will be really satisfactory and the local craft villages will give a peaceful sensation.

Recommendable villages in Troodos Mountains are Louvaras, Palaichori and Platanistassa for a real traditional Cypriot experience.

PLUS: the experience on the Troodos Mountain is unique on the island, completely different from the rest of the recommended regions.

Property costs and styles

Once you have a general idea of what the island has to offer when it comes to real estate investing, let’s check the budget issue. Of course, depending on the kind of property for sale you’re searching for, prices vary and also commodities. That’s why it’s so important to know what you want to do with your desired Cypriot property.

Luxurious resort-style properties can be found in Aphrodite Hills for around €500.000 for a two-bedroom villa “junior” style. In this kind of complexes, you can access a lot of commodities such as golf courtyards, gardens, parks, giant pools, etc.

Villas are one of the most popular kinds of property for sale in Cyprus as they are good investment opportunities whether you want to buy a retirement or vacation house, or you’re planning on business investment. Of course, according to the area, prices vary but as they are usually inside a gated complex and have their own pool, villas are considered medium-high class properties.

One three-bedroom villa in Pervolia could touch the €550.000 but if you want a similar property for a smaller price, then you must point to Peyia, where the price for the same property would be around €300.000.

If these prices still are too high for the budget, then maybe a Townhouse could be a very good alternative. Still offer pretty much the same commodities but instead of having an own private pool, it would be a community one. The same would be with gardens and entertainment areas. Nevertheless, the living space is around the same and the prices are really low. You can pay as little as €130.000 for a two-bedroom townhouse in Kato, Paphos

If you have no problem with a craft house then bungalows are a great option for any kind of purpose you have when thinking in Cyprus for a real estate investing. Whether you want to retire, have a vacation home, start running a hostel, etc. these pretty and comfortable houses (not-luxury) offer commodities as good as any luxurious villa for half of the price. A three-bedroom bungalow with its own private pool in Pissouri would be around €250.000

For a more regular style purpose, apartments that can function as a holiday property or an occasional visit property are found in Cyrpus of any kind, size, and price. The most luxury ones, found in Paphos resort complexes can round the €300.000 for a two bedroom apartment with community pool, gardens, and shores. The same kind of apartment for sale can be found at Coral Bay for around €75.000.

Finally, traditional Cypriot stone villas and farms can be found for really economic prices at the center of the island. This part of Cyprus is a bit less accessible and cold but if you own your vehicle they might suit perfectly as retire houses or romantic complexes for vacation.

This kind of houses for sale in Cyprus can be found around €15.000 to €70.000 if they are in need of restoration. But if you want to move right away, you can find them from around €60.000 to €200.000 depending on the size.

Taxes and fees

⦁ Immovable property tax (IPT): every owner of a property in Cyprus must pay this tax regardless their status.
⦁ Tax VAT (IVA): usually included in the property cost, this tax is needed when buying a new-build home and the rate is 19%.
⦁ Mortgage valuation fee and other bank charges: may be paid whether or not a loan is taken or approved.
⦁ Stamp duty: 0.20%
⦁ Land registry fee: around 3% to 8% of the buying price depending on the value of the property. If the land is transferred, a transfer fee will be paid.
⦁ Surveyor fees: only needed if the property for sale you’re planning needs or have had deep restoration.
⦁ Legal fees: they will vary depending on the value of the property but hiring a good independent lawyer that watches over your interests is highly recommended.

Mortgages and how to finance a property in Cyprus

It’s possible to take a loan or mortgage in Cyprus for Cypriot property even if you’re not a resident of the country. The mortgages will consist of a 30% deposit payable on 15 years depending on the age of the buyer.

Rates are around 3% and 4% and you’ll need a property valuation first. As in almost any mortgage, if you make a higher deposit, your rates will diminish.

It’s recommendable that you take the mortgage on the currency you’re paying the property on Cyprus. If you’re gaining in Euros, make sure to take it in that, currency but if you’re a foreigner and you are paid in dollars (i.e) take the loan in that currency. This way you won’t have further problems with currency exchange.

Other recommendations

⦁ Do your research about the real estate agent and the lawyer. Though they are regulated by law, it’s extremely common that you find illegal agents who work in monetary agreement and won’t protect your interests.
⦁ Wills and deed titles: make sure the property you want to buy has the deed titles in order and has no previous mortgage. Otherwise, you could find heavy problems to actually get the property title of your purchase. Also, Cypriot laws include a “forced heirship” clause that can only be transferred with an official will.
⦁ Insurance: make sure you own insurance. If you are planning a vacation home and the property will be inhabited for long periods, you need special coverage.

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