Legal Information
Legal information relevant to your property purchase in Cyprus
The process of purchasing property in any foreign country will certainly involve different procedures than what one is accustomed in their country. Obtaining legal advice is essential to making this a smooth experience and to ensure that all interests are fairly protected. We have prepared the following information to provide our clients with an overview of the Cyprus purchase process.
We trust this information will help you with your new home purchase.
Ownership Information
All properties in Cyprus are freehold.
For non-Cypriots, the process of purchasing property in Cyprus is very simple, especially when compared to other countries. Cyprus-LevelHomes will be with you all the way, assisting you with anything that you may need.
Non-EU citizens are entitled to freehold ownership of properties, while offshore entities may buy premises for their business or as a residence for their foreign employees. Permission to buy property must be sought from the Council of Ministers by written application, submitted by the non-EU purchaser after the agreement is signed. This permission is granted more or less as a matter of course to all bona fide purchasers. In the meantime, however, purchasers may take possession of their property without restriction. The application to the Council of Ministers to acquire immovable property in Cyprus can be made within a reasonable amount of time after signing the contract of sale.
EU citizens who are permanent citizens in Cyprus do not require permission to buy any immovable property.
EU citizens who are not resident in Cyprus also need the approval of the Council of Ministers.
EU citizens with permanent or temporary permits can register as many properties as they wish in their name, provided they have signed a confirmation with the government of Cyprus that they will stay in the country for the following five years.
Legal entities established in EU countries that have their headquarters and registered office in Cyprus do not require permission to buy any immovable property.
Legal entities established in Cyprus and controlled by citizens of the EU require permission to buy immovable property in Cyprus, as well as any other legal entities.
The legal system in Cyprus is based on the British system. When purchasing property in Cyprus your Solicitor will prepare the contract of sale that will be signed between you and Cyprus-LevelHomes. The contract of sale will be in English, but we can provide you with a translation in the language of your choice.
Payment Terms
Payment Terms will be discussed and agreed between you and Cyprus-LevelHomes at the initial consultation. Normally you will be required to pay a deposit and the balance of the purchase price in stages.
Filing the Contract of Sale with the Land Registry
When purchasing property in Cyprus, it is essential that your Solicitor deposits your contract of sale with the District Lands’ Office within two months of you signing it for what is known as Specific Performance.
The objective of this law is to protect the interests of buyers from wrongdoings by the seller. It gives you the 'right to own' the property once you & the seller have fulfilled their obligations to each other as defined in your contract of sale and the Title Deed has been issued.
When the Contract of Sale is deposited at the District Land's Office for Specific Performance it creates a 'claim' against the property you're buying. This claim prevents the seller from changing his mind about selling it to you or selling it again to someone else.
When the Title Deed for the property become available, the Property Transfer Fees you pay will be based on the market value of the property on the date the Contract of Sale was signed. If your lawyer fails to deposit your Contract of Sale for Specific Performance, then the Property Transfer Fees you pay will be calculated on the market value of the property at the date you visit the District Lands' Office to effect the transfer of ownership.
