The quickest route to obtaining a European passport is to invest in real estate in Cyprus. For your convenience, we collaborate with only the most reputable builders.
Cyprus is a great spot to own a second home or raise a family because of its pleasant year-round temperature range, excellent standard of living, favorable geographical location, and plenty of Blue Flag beaches.
After the Turkish invasion and occupation of Northern Cyprus in 1974, the island was divided into Northern (Turkish) and Southern (Greek) Cyprus, which must be taken into account in evaluating the many aspects of purchasing property in Cyprus. The Turkish-occupied northern half of Cyprus is not recognized by the United Nations or the European Union.
The majority of homes for sale in Northern Cyprus are extremely dangerous investments. There is a heated disagreement between the current occupants and the legal owners, who were driven from the houses in the height of the conflict in 1974, over who has the right to sell the properties. Despite the lack of progress, many southern Greek Cypriots believe it is illegal for Turkish occupiers to sell houses in Northern Cyprus. As a result, potential buyers of such properties should use extreme caution.
Procedures Involved in Purchasing Real Estate in Cyprus
Fortunately, the European side of southern Cyprus is rife with attractive real estate opportunities. Purchasing property in Cyprus is an easy process. However, it is strongly advised that the buyer retain the services of an independent, competent attorney who is not affiliated in any way with the property’s seller or developer. The attorney will check that the property is free and clear of any liens or claims, that the selling party is the legal owner, that all necessary permits for the land’s use and construction have been obtained, and that the Sale Agreement is legitimate. Verifying the legitimacy of the property’s title is also essential. It is also necessary for non-European citizens to seek formal approval from the Council of Ministers before purchasing property in Cyprus, but this should not be too difficult to do. Within one month of signing the agreement and sending payment to the seller, you must present the agreement to the local tax office to pay stamp duty or face a fine. The purchase agreement has a two-month deadline for delivery to the district land office from the date of signature. This is done so that the buyer can rest assured that they are acquiring the property from the legitimate owner.
Gradients in Property Costs in Cyprus
Price variations for Cypriot real estate are highly sensitive to factors such as location and, most crucially, the buyer’s intended use of the property. In many regions, a home may be purchased for roughly EUR 111,111, but the sky is the limit because some of the most costly homes are selling for several million dollars.
Government investment programs have a significant impact on real estate prices in particular places.
Citizenship in exchange for financial investment in Cyprus
Investment properties in Cyprus must cost at least EUR 511,000 + VAT to qualify for the Cyprus Investment Program. In addition, the program necessitates an out-of-pocket expenditure of EUR 1,511,111 be made in one of the investment vehicles listed in the program and matching the investor’s preferred choice; real estate is one such vehicle. As a result, many buyers are willing to put down €1.5 million more than originally planned in order to afford a luxury property in Cyprus, driving up prices in this market. There has been a dramatic increase in building on the island of Cyprus ever since the Cyprus Investment Program was launched in the year 2113. This has prompted the construction of both high-end beachfront villas and high-rise apartment buildings offering multimillion-dollar homes with panoramic ocean vistas.
Property prices in Limassol, Cyprus, have skyrocketed in recent years, making it a prime market for luxury homes. Foreign buyers and those interested in investing in Cyprus often choose to purchase property in Limassol. A lot of the city’s property was constructed with investors in mind. Similarly, Paphos has seen the construction of high-end private residences, many of which feature a garden and swimming pool.
A Permanent Residency in Cyprus through Financial Investment
The residence by investment program in Cyprus is a further factor driving up property values there. To qualify for residency in Cyprus under this program, non-European candidates must show that they have a regular income stream from outside of Europe and purchase a home in the country for at least EUR 311,111 + VAT. Obviously, there are many more homes available for just over EUR 31,111 + VAT than the EUR 1.5 million or above needed for the Cyprus Investment Program, and for just over EUR 1.3 million + VAT, you can still purchase a very appealing house on the island.
Cyprus’s Widely Varying Real Estate Prices
In Europe, those who can afford to do so have more options for residential real estate than those who must adhere to minimal investment requirements. Even within the same city on the island of Cyprus, prices might vary widely.
A two-bedroom apartment in the popular resort town of Ayia Napa, for instance, can be had for less than EUR 111,000 or more than EUR 1.5 million, depending on factors such as the year of construction, the quality of the residential complex, the proximity to the beach, etc. However, even the island’s more affordable homes typically provide a higher level of living than many other European countries, and excellent bargains can be had.
Property buyers should budget for additional costs like fees and taxes. Typical closing costs, which include attorney and surveyor fees, government taxes, and registration fees, can add up to 11 percent of the purchase price of a home. The new construction properties in Cyprus are subject to a VAT tax of 5%.
Where to buy Property in Cyprus
The appropriate choice of site necessitates thoughtful consideration of the buyer’s long-term ambitions. It’s important to think about all of the following factors:
- Does the buyer plan to make Cyprus their permanent home?
- Is this a second house, or will the buyer be living there full-time?
- Will the buyer use the home as a rental?
- Is the purchaser obligated to make a minimum offer in order to participate in the residence or investment programs in Cyprus?
- purchaser’s own tastes, etc.
Land for Sale in Limassol and Paphos
Since Limassol is the most dynamic and cosmopolitan city on the island, it is the preferred destination for many long-term residents. The city is also home to several foreign schools and numerous businesses. Additionally, if you plan on renting out your property, now would be a good time to do so in Limassol because of the city’s severe housing shortage and the city’s growing demand for houses in the mid-market price range. However, there is a supplementary expense associated with maintaining a residence in Limassol.
Although Limassol is home to the majority of the country’s jobs, many people choose to reside in neighboring Paphos because of its lower cost of living and proximity to the airport. Paphos is a more laid-back alternative to Limassol; in addition, the majority of the currently available housing options are detached houses rather than apartment buildings.
Investments in Nicosia, Larnaca, and other tourist hotspots
The capital city of Cyprus, Nicosia, is home to a number of well regarded private schools and offers excellent potential for rental income thanks to consistent demand from the island’s native population (many Cypriots work in the capital). However, Nicosia is landlocked and doesn’t have any beaches within easy driving distance, so it’s not a great area to purchase a second house or rent a place for a week or two.
Numerous other seaside resort towns experience a summertime boom but a wintertime lull. While cheaper vacation houses in such locations could be a good option for the busy summer months, year-round residence is certainly not the best option. Among the best are Ayia Napa, Paralimni, and Protaras.
Larnaca’s location on the coast, its proximity to the country’s only other airport, and the city’s far lower home prices compared to Limassol and Paphos make it an attractive option. Some real estate professionals in the area believe that the city is undervalued at the moment because of its modest size compared to, say, Limassol.
Leasing Out Your Cyprus Home
Cyprus’s tenancy laws can be complex. Before deciding to purchase a property in Cyprus for the purpose of renting it out, you should get the counsel of a lawyer and learn about the applicable rental legislation. The two main types of tenancies in Cyprus are free market tenancies and statutory tenancies. When it comes to crucial aspects of tenancies, such as eviction procedures in the event a tenant refuses to vacate or periodic rent increases, the two types of tenancies differ greatly.
Cyprus Landlords Should Be Wary of Taking on Statutory Tenants
Statutory tenancies provide greater protections for tenants than do free market tenancies; as a result, many foreign and Cypriot landlords find it challenging to regain possession of their buildings or increase rent to reflect market conditions while tenants are in place.
Landlords would be wise to avoid purchasing buildings developed after December 31, 1999 if they want their tenancies to be considered statutory, as this is one of the key legal requirements. To verify the construction date of a resale property, your attorney can contact the original builder and the Power Authority of Cyprus to find out when the property was initially wired for electricity (usually when it was constructed).
A Cyprus rental property can be a lucrative investment. You should consult an impartial attorney about all of the aforementioned issues before making a purchase, but doing so in advance is essential.
Properties in Cyprus can prove to be excellent homes and profitable investments for years to come if thorough due diligence is performed with the assistance of a lawyer. This is true whether the purchase is motivated by investment, relocation, or the ownership of a vacation house.