Purchasing a new property in Cyprus

The legal system in Cyprus is mainly based upon the British legal system, which makes purchasing a property a relatively easy and efficient process. Non-Cypriot buyers are entitled to a freehold ownership of property and can have one property registered in their name at each time.

The regulations surrounding ownership of property in Cyprus are straightforward.
When you buy a new property in Cyprus the purchase price is normally settled in a number of instalments. A deposit of approximately 20-30% must be paid upon signing of the purchase contract, as a verification of the agreement made. This formalises the purchase and you have a written confirmation from the construction company. If the contract is broken by the purchaser this deposit is non-refundable.

Payment procedures:
1. Upon signing the contract a deposit of approximately 20-30% of the purchase price is paid. This means that the house is taken off the market, reserved for you and the purchase price is guaranteed.
2. The second payment of approximately 20% of the purchase price shall be due approximately 2-4 weeks after the signing of the contract. If required, a bank guarantee of the deposit and first instalment can be ordered at this stage.
3. The third payment of approximately 20% is due on delivery of the new property. If required a new bank guarantee can be ordered.
4. The remaining 40% can be paid in full on completion of the property or it can be paid in monthly instalments on a new property over up to 7 years. At this stage you will also pay a fee for the legislation of the title deeds.

The bank guarantees for the various instalment payments are issued by the construction company's bank. When your new property is completed and the title deeds are made official, the bank guarantees are handed over to the construction company. In the unlikely event of any problem, which prevents the completion of the construction, the amount paid, with interest, is refunded to the buyer.

Permits:
Residential permits are easily obtained once the proerty has been purchased. The granting of the permit is based upon the level of foreign income available to support oneself and this includes pensions and income from investments. After obtaining this permit, if you are seeking to work in Cyprus you will need to apply for a working permit through immigration authorities. To obtain a:
Temporary Permit - you will need a bank account in Cyprus and a sales agreement of property purchased, temporary residence status can be from 1 to 4 years
Permanent Permit - in addition to the above requirements, the applicant must have evidence of a secured annual income of CYP£5,000 per person

Mortgage:
All commercial banks in Cyprus offer mortgage facilities and assist with the purchase of a property, with the loan being in foreign currency. The amount ranges from 60-80% of the value of the property with a repayment period ranging from 7 to 10 years. Long-term in house finance schemes are also available and Sunworld Estates can provide you with further information and assistance on obtaining a mortgage for your Cyprus property.

Title deeds:
The legal system in Cyprus has been mainly based upon the British legal system.
The transfer of ownership from Vendor to Purchaser is undertaken by a simple procedure through the Cyprus Land Registry Office, either by the buyer or third party with Power of Attorney. The two permits required for transfer of ownership are from the Council of Ministers and the Central Bank of Cyprus - both which are easily obtained from the Cypriot authorities.

Sunworld Estates and their associated agents, will assist you completely through the whole process of purchasing a property in Cyprus. All of these will be explained in further detail should you choose to proceed with purchasing a property with us and we shall do everything possible to make sure it is as easy and hassle free for you.