Step By Step Guide – Purchase

Step-by-Step Guide to Buying an Apartment in Cyprus

1. Reservation and Due Diligence

• Reservation Deposit: Usually between €2,000–€10,000 (deducted from the sale price).
• Due Diligence: A lawyer checks ownership, mortgages, planning permits, and title deed status.
  • TIP: Always engage a local, independent lawyer (not the developer’s or seller’s).

2. Sign a Sale & Purchase Agreement (SPA)

• Drafted by the lawyer and signed by both parties.
• Deposit is usually 20–30% of the price upon signing.
• If the title deed exists, it is transferred immediately. If not, a “contract of sale” is lodged at the Land Registry for protection.

3. Council of Ministers’ Approval (for non-EU citizens)

• Non-EU buyers need approval to purchase immovable property.
• It is a formality, but can take a few weeks.

4. Apply for Permission to Transfer Title

• If the title deed is ready, the buyer proceeds to the Land Registry for title transfer and payment of taxes.

💰 Taxes & Fees Payable

1. Transfer Fees (Paid to the Land Registry)

Only paid when title deeds are issued. If VAT applies (see below), no transfer fees.

• If two names are on the deed, the value is split, reducing the fee.
• Example: On €250,000:
  • First €85k → 3% = €2,550
  • Next €85k → 5% = €4,250
  • Remaining €80k → 8% = €6,400
  • Total: €13,200 (approx.)

50% discount applies for resale properties (subject to rules).

2. Stamp Duty

• Paid upon signing the contract.

• Capped at €20,000

3. VAT (if applicable)

• New properties are subject to 5% or 19% VAT, depending on the usage:

• Resale properties are usually VAT-exempt.

4. Legal Fees

• Typically 1%–2% of the purchase price (plus VAT).

5. Other Fees

• Bank charges (if opening a Cypriot account).
• Translation fees (if needed).
• Utilities registration fees (electricity, water, etc).

🏠 Ongoing Costs After Purchase

• Municipality Taxes: ~€85–€300/year (rubbish collection etc.)
• Sewerage Fees: ~€100–€200/year.
• Communal Charges (apartments): Varies depending on facilities (pool, elevator, etc.)