Buying a holiday home, rental property or permanent residence in Cyprus is hugely attractive, with the opportunity to own real estate on a beautiful Mediterranean island within a short flight of the UK, enjoy proximity to golden beaches and warm seas, and make the most of low living costs and high-quality amenities.
For British nationals or buyers from elsewhere outside of the European Union, there are now restrictions and considerations when purchasing property in Cyprus due to changes post-Brexit, while the potential to apply for residency remains available.
Today's guide to buying real estate property in Cyprus has been compiled by the real estate experts at Property Turkey. It covers all the essential information you'll need to confidently move forward with your plans.
Rules on Buying a Cypriot Property as a Non-EU Citizen
Many of the clients we work with are pleasantly surprised at the ease with which their property purchase proceeds, although much of this is down to having an experienced representative with extensive knowledge of the local property market and the applicable regulations.
The first step is to clarify the rules, although these may depend on whether you plan to live in Cyprus, buy a holiday home, or apply for the residency by investment programme. As a quick introduction:
Foreign nationals from outside the EU are welcome to buy Cypriot real estate, although you will need to submit an application to the Council of Ministers. We can assist with this part of the process because, although the vast majority of applications are approved, this can take time if there are any queries or issues.
Non-EU citizens can buy a maximum square meterage of land, which equates to up to 4,014 square metres, or about 43,200 square feet.
If you do not have a visitor's or resident’s visa, you will need to comply with the travel restrictions. These state that you can remain in a European country for 90 days every 180 days, which could influence your plans.
For most real estate buyers, the simplest route is to browse properties within the areas you'd love to live or visit and organise viewings or surveys as necessary. Once you have found your dream property, you can complete the initial paperwork, including a sales contract lodged with the Land Registry.
Title deeds are not officially transferred until formal approval is granted by the Council of Ministers, so whilst this is the quickest strategy, it’s equally essential to have a contractual clause to protect you in the very unlikely circumstance that the application is refused.
Purchasing a Property in Cyprus to Qualify for the Residency by Investment Scheme
While the routes to gaining permanent residency in Cyprus through an investment in the domestic property market have changed in recent years, this visa remains open to new applications following reforms.
Alongside buying a maximum of two new-build residential properties worth at least €300,000 plus VAT, applicants must:
Prove they have a stable annual income that arises from outside of Cyprus, worth at least €50,000 per year, plus €15,000 per dependent spouse and an additional €10,000 for each dependent child.
Have a clear criminal record check produced in their home country, and submit further criminal record certificates every three years for all adults included on the residency application.
Visit Cyprus in person once their application has been approved to submit biometric information.
Residency permit holders must visit Cyprus at least once every two years to retain their residency rights and eligibility but can still apply if they intend to continue living overseas, with the option of renting out their Cypriot property to earn a rental income.
Average Costs of Real Estate Acquisition in Cyprus by Area
Like most countries, property prices and localised real estate markets vary across the island, with typically higher prices for luxury seafront homes, premium plots and those in prime tourist destinations with strong rental demand and sustained property appreciation.
To help narrow down your options, we’ve listed below the average prices per square metre for a central property in each of the most popular locations:
Limassol: €4,608 per square metre
Nicosia: €2,400 per square metre
Paphos: €3,024 per square metre
Larnaca: €2,966 per square metre
Famagusta: €3,267 per square metre
These prices are, of course, averages, and it’s well worth consulting the Property Turkey team to access a first look at new listings within your desired area that fall within your budget or to discover regions or developments that offer excellent investment potential.
Considerations When Buying Property in Cyprus
One key aspect we often recommend clients bear in mind is that if they are buying a home or rental property in Cyprus, the prices and fees for local agents, solicitors, and services will always be stated in euros, which can mean that the real-world cost to them is subject to fluctuation.
For instance, the exchange rate at the time of writing is around €1:£0.83, which means investing €300,000 to become eligible for the residency by investment visa would cost roughly £249,000.
However, the exchange rate is far from static, and this time last year, the same property would have cost £262,500—a not insubstantial variable.
Likewise, it is very important that you follow the correct purchasing process, which usually involves:
Paying a reservation fee, typically non-refundable, to ensure a property you wish to buy is removed from the open market for a limited period.
Appointing a solicitor to conduct due diligence checks and manage the transfer of the title deeds.
Reviewing the terms of the contract of sale and potentially applying for a reduced VAT liability if you are buying a home as a permanent residence.
Completing the application process with the Council of Ministers.
We’d always recommend working with an accomplished property team with experience facilitating sales and purchases for foreign national buyers to limit potential problems or unnecessary costs.
Read more about Property Turkey – All You Need to Know About Buying Property in Turkey as an Expat
About Property Turkey: With 20+ years experience in the Turkish real estate market, team Property Turkey are your experienced, friendly and independent overseas real estate consultants. Our head office is located in London, UK with regional operational offices in Bodrum, Fethiye & Kalkan, Antalya and Istanbul.
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Source Company: https://www.propertyturkey.com/
Original Source of the original story >> How the Property Cyprus Market Works for Foreign Nationals
Published by: Steve OBrien