Why do foreigners choose Cyprus for buying real estate?

Climate and ecology

When analyzing options for foreign citizens looking to purchase property in Cyprus, it is important to highlight a number of key factors that contribute to this interest. First and foremost, the stunning climate and incredible ecological cleanliness of the island significantly enhance its appeal to potential buyers. The mild winter months, when temperatures typically reach 17 degrees Celsius, and the sea, with temperatures that do not drop below 16 degrees, create excellent conditions for relaxation and living.

The tourist season here lasts much longer compared to other EU countries, making Cyprus especially attractive for those seeking constant sunny warmth and comfort.

Education and transportation

In addition, Cyprus offers high-quality educational institutions, including private English and Russian schools, which make education accessible for many families. As for the transportation infrastructure, the island has two international airports, and a well-developed road network allows you to reach any point on the island in just an hour and a half, which is a significant advantage for those who value their time.

Moreover, Cyprus truly delights with its seasonal vegetables and fruits, as they are harvested several times a year, ensuring freshness throughout the year.

Taxes and residence permit

Now let's focus on aspects related to real estate. When choosing a home, two key points need to be considered:

• The absence of an annual taxon real estate.
• Possibility of obtaining a residence permitfor foreign citizens with investments starting from 300,000 euros in purchases.

This makes the island particularly attractive to investors.

Purchase on the primary market

When choosing real estate in the primary market of Cyprus, it is important to pay attention to several aspects. First of all, you should ensure that the contract specifies clear deadlines for the completion of the property, especially if it concerns a building under construction. The contract should also outline the measures of accountability for any potential delays in meeting the terms.

It is very important for the lawyer handling the transaction to check with the developer for the presence of all necessary construction permits, as well as the absence of encumbrances related to loans. If such encumbrances exist, it is necessary to obtain documents from the bank confirming that the property will be released from the mortgage by the time the ownership rights are formalized.

Purchase on the secondary market

As for the secondary market, the next thing to pay attention to is the presence of a title deed that confirms ownership. If more than three to four years have passed since the completion of construction and the title deed is still not issued, this may indicate serious problems, such as violations during construction or financial obligations of the developer, and in such cases, it is important to be especially cautious.

It is also worth considering that some buyers may avoid formalizing the title deed to evade taxes. This can lead to serious legal consequences, so it is crucial to thoroughly check all documents before finalizing the deal.

Conclusion

Ultimately, the process of selecting real estate in Cyprus requires special attention and a high level of legal support to minimize potential risks and ensure the legitimacy of all stages of the transaction.

The process of purchasing real estate in Cyprus is divided into several key stages, which remain unchanged regardless of whether you are buying new or secondary housing.

Stage 1: Making a deposit

Initially, a deposit is required to temporarily take the property off the market. Typically, the deposit amount ranges from 1,000 to 10,000 euros, and a document confirming the deposit must be issued for this amount. This deposit will later be deducted from the final purchase price, and the property will be reserved for a period of one to two months.

Stage 2: Document Verification

During the specified period, the lawyer reviews all documents related to the property and takes measures to eliminate any possible encumbrances and liens, if they exist. The specialist also drafts the purchase agreement, which is agreed upon by both parties to the transaction. Unlike similar agreements, this contract may include various conditions, such as a payment schedule and deadlines for the transfer of the property.

• If a new property is being purchased, the date of key handover will depend on the completion of financial transactions.
• In the case of secondary housing, the keys can be obtained from the lawyer or the agent who assisted in the search process.

Stage 3: Signing the contract

When the lawyer completes the preparation of all necessary documents and the contract, the next step is to agree on the signing date. This procedure can be carried out on-site in Cyprus or remotely if the documents are sent by express mail. After that, the new owner begins making payments according to the schedule outlined in the agreement.

Stage 4: Obtaining permission

If necessary, the lawyer can also prepare an application for obtaining permission from the Council of Ministers of Cyprus to purchase the first property. This process is formal — the council checks the information about the potential buyer to ensure that they have no legal issues and that their name is not on Interpol's lists. In this case, the transaction will be designated as an annex to the first purchase of housing for citizens of countries outside the European Union.

Financial costs

As for the financial costs of purchasing real estate, the main expenses when buying secondary housing, aside from the price of the property itself, are related to the payment of the transfer fee.

• For a deal up to 85,000 euros - 3%
• From 85,000 to 170,000 — 5%
• For amounts over 170,000 euros - 8%

Currently, there is a 50% discount in Cyprus.on this tax. This significantly reduces the overall costs. For example, with the price of secondary housing at 500,000 euros, the transfer tax will only be 16,600 euros. It is important to consider all these nuances to avoid unforeseen situations and to properly execute the transaction.

When preparing a budget for purchasing real estate in Cyprus, it is critically important to consider the costs of legal support for the transaction.

Conclusion

In conclusion to the article about choosing Cyprus for real estate purchase, I want to emphasize that this island is truly a unique place, attracting foreigners from all over the world. Throughout the text, I highlighted various aspects, starting from the climate and ecology, which undoubtedly play a crucial role in the buyer's decision. The ease of getting around the island, thanks to the developed transport infrastructure, and the absence of an annual property tax create ideal conditions for living and investing.

The process of buying real estate

The process of buying real estate in Cyprus, with all its nuances – choosing a property, formalizing the deal, and the costs involved – is a complex and serious step that requires careful preparation and consultations with experienced lawyers. I hope the tips outlined in the article will help you avoid potential pitfalls and make your purchase as safe and profitable as possible.

Advantages of living in Cyprus

Each point I mentioned highlights numerous factors that make Cyprus one of the most attractive places for living and investing in real estate. Among them:

• High level of educationThanks to private English and Russian schools.
• Cultural diversityand the friendliness of the locals.
• Comfortable environmentfor permanent residence or vacation.

I sincerely believe that my recommendations and detailed explanation of the issue will help you make an important decision and may serve as the beginning of a new and bright chapter in your life on sunny Cyprus.