The Question of the Month
Because when I wonder, it’s worth… asking!
Through this section of the online magazine by Synergy Estate Agents, answers are provided to various questions related to real estate & the property market in Cyprus.
The Managing Director of our company, Christodoulos Kyriacou, addresses the question posed to him in this issue.
Question: What are all the steps a buyer should know before purchasing property in Cyprus? Can you walk us through a thorough guide?
Purchasing property in Cyprus can be one of the most fulfilling decisions you’ll ever make — whether you’re looking for a permanent home, a holiday escape or a valuable investment. However, navigating the property market involves specific legal steps, financial considerations and local regulations that first-time buyers should be fully aware of.
At Synergy Estate Agents, we’re here to guide you every step of the way, ensuring your purchase is smooth, secure and successful.
1. Partner with a Licensed Real Estate Agent
Working with a licensed and experienced local agent is essential. At Synergy Estate Agents, we help you identify legally sound properties that match your needs and budget. Our team also supports you through price negotiations, paperwork and communication with sellers, lawyers and relevant authorities — giving you peace of mind throughout the process.
2. Set Your Budget from the Start
Before viewing properties, get a clear picture of your finances. Speak to your bank early to determine your borrowing capacity and confirm your available deposit. Having a defined budget allows you to focus on the right properties from the beginning, saving you time, effort and potential disappointment.
3. Verify Title Deeds and Complete Due Diligence
Ensure the property has a separate title deed. If not, ask when it’s expected to be issued. Newly built properties are not expected to have separate title deeds immediately; it takes some time – usually a couple of years to be issued.
Your lawyer or estate agent will help confirm that the necessary planning and building permits are in place — especially critical for properties without title deeds.
Always complete your due diligence before signing the Sales Agreement. You should also request a Search Certificate from the seller to check for existing mortgages or encumbrances affecting the property.
4. Don’t Rush — Ask Questions
Buying property is a major decision, so take your time. Visit the property more than once, walk around the neighborhood and don’t hesitate to ask detailed questions about ownership status, planned developments in the area, utility access and more. It’s also wise to consult a civil engineer or architect to identify potential issues with the building and estimate renovation or improvement costs. The more informed you are, the more confident and secure your decision will be.
5. Secure the Property with a Reservation
Once you find a property you wish to purchase, you can secure it by signing a reservation agreement and paying usually a non-refundable reservation fee. The fee depends on the property price and the amount is agreed between the parties. This temporarily takes the property off the market (usually for 30–45 days) until the loan of the buyer is approved and the Sales Agreement is prepared.
The reservation fee is held by the estate agent or the seller’s lawyer and is deducted from the total purchase price.
6. The Sales Agreement
The Sales Agreement is the central point in the process. Negotiating the terms and conditions of the Sales Agreement is a crucial step to safeguard the interests of both buyer and seller. The agreement should clearly outline key provisions such as the purchase price, payment schedule, deposit requirements, completion date and any specific restrictions, obligations, conditions or contingencies related to the transaction.
7. Legal Representation Is Strongly Recommended
Although not legally mandatory, hiring an independent property lawyer is highly advisable. A qualified lawyer will:
- Conduct all legal due diligence
- Ensure your rights are protected under the contract
- Handle Land Registry procedures
- Liaise with banks, developers, and government offices on your behalf
8. Understand the Full Costs Involved
a. Stamp Duty
The Sales Agreement can be deposited at the Land Registry Office within a certain deadline imposed by law (six months from the date of signing the Sales Agreement).
When buying property in Cyprus, the buyer typically pays for the stamp duties that must be applied to the purchase agreement amount. The contract should be stamped within a period of thirty (30) days from signing. These are paid to the Inland Revenue (i.e. the Cyprus Tax Department). Stamp duty rates are as follows:
- Up to €5,000 – 0%
- €5,001 to €170,000 – 0.15%
- Over €170,000 – 0.20%
b. Transfer Fees
These fees are paid by the buyer when the title deed is transferred into their name. Calculated based on the property’s market value at the time of transfer as follows:
- Up to €85,000 – 3%
- €85,001 to €170,000 – 5%
- Over €170,000 – 8%
Discounts and Exemptions:
- A 50% reduction applies.
- No transfer fees are payable if VAT was applied on the purchase.
- For joint buyers, the purchase value is split, lowering the transfer fee bracket.
c. VAT
New properties are subject to 19% VAT. However, eligible buyers may apply for a reduced rate of 5%, provided:
- The property will be used as their primary and permanent residence.
- The buyer does not own another primary residence in Cyprus.
- An official application is submitted along with supporting documentation.
9. Transferring the Title Deed
Once the Sale Agreement is signed, the buyer and seller present themselves at the Land Registry Office to complete the transfer. If applicable, the buyer pays the transfer fees. To schedule the transfer appointment, the seller must first secure clearance certificates from the local Municipality, Water Board, Sewerage Board and Tax Department. If the property is subject to a mortgage, the seller is responsible for notifying their bank to prepare the required release documents prior to the transfer. The mortgage will be discharged upon receipt of the outstanding loan amount, which is paid concurrently with the title transfer.
10. Approval for Non-EU Buyers
- Non-EU Citizens:
Foreign nationals — including individuals from non-EU countries, foreign companies and companies under foreign ownership as defined by law — must secure approval from the local District Administration before purchasing immovable property in Cyprus. There is no fee for submitting this application, and the approval process typically takes between 2 and 3 weeks.
- EU Citizens:
Free to purchase property in Cyprus without restrictions.
In Summary
Buying your first property in Cyprus can be an exciting and seamless experience — as long as you’re well-prepared and well-advised.
At Synergy Estate Agents, we offer expert guidance, market insight and full support to help you make smart, confident decisions from start to finish.
