Cyprus law information from Ideal Property Solutions Ltd

Cyprus law

Cyprus Property Ownership

Owning Cyprus property is a relatively straightforward process. As a buyer however, you must familiarize yourself with the laws and documentation that are required to effectively acquire Cyprus properties. The majority of Cyprus properties sold is freehold properties, even though leasehold properties are available for purchase, as well. Whether you choose to purchase freehold or leasehold property, the first step towards acquiring property requires that residential permits are obtained. Residential permits are easy to attain and are separated into the two following categories - the temporary Residence Permit and the Permanent residence permit. Once the necessary permit has been filed, the Title Deed regarding property ownership must be organized and processed, and ownership transfer fees must be paid accordingly. Once these steps have been completed, the initial property ownership steps will have been completed and you will be able to continue the Cyprus property ownership process.

Temporary Residence Permit: Non EU nationals are able to purchase property not exceeding 2,700 square meters. The granting of this permit requires the existence of a bank account in Cyprus and a sales agreement of the property purchased. Temporary residence status can be from one to four years.

Permanent Residence Permit: In addition to the above requirements, the applicant must establish evidence of a secured annual income of not less than 5,300 EURO.

Transferring Title Deeds: Property transfer fees are to be paid in one instalment to the Land Registry office. You have the right to deliver this document personally or by a Power of Attorney to your Solicitor. These fees reflect the property's selling rate on the date of purchase. The amount is based on a graduated scale explained in the table below. You will be responsible for paying this instalment once the title deeds are transferred into your name. Transfer fees are required with the purpose of transferring freehold ownership into your name. It is your responsibility to settle the payment of this fee. Purchase0-85.000 EURO	3%	0 – 2.550 EURO
85.000- 170.000 EURO	5%	2.550 – 8.500 EURO
170.001 and above	8%	8.500 and above

For property purchased in the amount of 70.000 EURO in one name, the transfer fees due will be up to 2.500 EURO.

Up to 50.000 EURO	3%	1.500 EURO
Remaining 20.000 EURO	5%	1.000 EURO
	Total:	2.500 EURO

If the property is in joint names (i.e. husband and wife) or two individual names, then the purchase value is divided into two portions resulting in reduced transfer fees. For property purchased in the amount of 120.000 EURO in the names of the two persons, the transfer fees due will be 3.600 EURO.

First 60.000 EURO	1.800 EURO (share of husband)
Second 60.000 EURO	1.800 EURO (share of wife)
Total:	3.600 EURO>

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