Cyprus is a small country you have possibly never heard about. Found in the East of Mediterranean, the country is home to slightly under 1 million people, the country is known as one of the most secure in the world. After going through a number of economic challenges earlier this decade, the country has emerged as one of the fastest growing economies in the European Union. In 2018, the country’s economy expanded by 3.2%, which was above the European Union average of 2.1%. Its property prices have grown by 80% in the past five years. This article will guide you on how to buy property in Cyprus.
Why Should You Buy Property in Cyprus?
You might be asking the question on why you need to buy real estate in Cyprus, a small country located very far. It is indeed a valid question but as we will explain below there are many reasons you might consider owning a property in this country.
Member of the European Union
The European Union has its flaws. It’s a highly regulated place with sluggish economic growth. However, we should not underestimate the potential that the region has with its more than 500 million people. The region is highly developed and the people have above average earnings power. Therefore, if your goal is to live or invest in the European Union, buying real estate in Cyprus is one of the easiest way to do this.
The country offers two types of passports. The Cyprus investment passport gives foreign investors who invest at least €2 million in the country full Cypriot citizenship. With this passport, you can live and do business in any country in the European Union. The same applies to your family members. By investing €300k in the country, you can get a residence passport that will give you the freedom to travel and do business in all parts of the European Union.
As a small country with no major resources, the country has put in additional measures to attract foreign companies. One of this is the low taxes the country has. With corporate taxes at 10%, the country has the lowest taxes in the European Union. This has attracted so many companies, especially those in the finance and transport industry.
Cyprus has a very ideal location at the intersection of Europe, Asia, and Africa. This means that by investing in the country, you have easy access to all these locations, especially if you are a business person.
The other reasons you might consider buying real estate in Cyprus are:
- Its main cities are at close proximity to the Mediterranean. In fact, it has some of the cleanest beaches in Europe.
- It is the safest country in the world, especially for young people.
- It has been voted as one of the best retirement destinations in the world.
- The cost of living is relatively
- The country is home to diverse people from around the world.
- Advanced infrastructure.
- Excellent weather.
How to Buy Property in Cyprus
As with buying property anywhere else in the world, the key for getting the best property in Cyprus is to do due diligence. You need to research on the best cities to buy the property in and their property growth in the cities. You also need to research about the historical trends in the property market in these places. If you are buying to live, you should also do research on the neighborhood you will be living at. This research is so important and will help you avoid having buyers’ remorse. The most popular destinations in the country are Limassol, Nicosia, Larnaca, and Paphos.
After doing your research, you need to get permission from the Council of Ministers by writing a written application. After finding the ideal property, you should reserve it by paying a deposit of at least 2,500 euros. After this, you will receive a contract to buy the property and then pay at least 10% of the price you had agreed with the seller. Finally, you and your legal representative should complete the transfer of ownership. You will then be issued with the completion certificate and the title deeds.
As a buyer, you will need to pay additional fees before you complete the transaction. In this, you will need to cover the property fees and taxes. These range between 6 and 7 percent of the purchase price. Other costs are stamp duty, which is 0.15% of the purchase price, a 15% value added tax, legal fees, fees to the Council of Ministers, which is about 180 euros. Other optional fees you will need to pay are the surveyors fees, mortgage fees, and foreign exchange costs.
As you look for a new place to buy a home for residential or investment purposes, Cyprus is a great place to consider. It is strategically located, has an exciting nightlife, reasonably affordable, and has wonderful people and features. It is a historic country with exciting beaches and excellent weather, with sun coming out throughout the year. To search and buy property in Cyprus, you need to have an excellent real estate partner in Cyprus like CENTURY 21, which is part of Realogy, one of the biggest real estate organizations in the world. Companies like this will help you identify the projects and deal with the paper work.