If you plan to buy a home in Cyprus, you are about to make a great decision. Observing the present real estate and property investment environment in Cyprus, it is evident that Cyprus is on the verge of substantial market expansion. New real estate developments are being developed, and more home buyers are choosing the sunny island as their next location to purchase.
It is essential to know the purchasing procedures when buying a home in Cyprus or any other country. In this article, we will go through the 6 important steps you need to take to buy a home in Cyprus legally and safely
1. Finding Your Home in Cyprus
When it comes to purchasing property in general, the first and most crucial step is to locate the most acceptable and secure property to buy. The first and most important fundamental two elements are as follows:
- The property’s location: The location is king. When you buy a home in a strategic position, you not only profit from the lifestyle in that place, but your investment’s property value rises with time.
- The developer who developed the property: By selecting the correct and trustworthy developer, you can ensure that the construction quality of your property is excellent and that you will not have any problems in the future. Furthermore, the right developer should always give a reasonable market price and never overcharge you when you’re buying a home in Cyprus.
If you are seeking to buy a home in Cyprus, the following projects have been developed to the most excellent quality and in the most strategic locations:
2. Viewing the Potential Properties
After doing your property research and finding all the suitable choices, it’s time to narrow down your choices. When you’ve narrowed down your choice to buy a home in Cyprus, it’s time to schedule viewings.
The viewing is planned and conducted on-site with the developer; however, pioneer developers may give a virtual tour of their homes for you to examine remotely in post-pandemic periods. When browsing the properties, keep your desired outcome in mind. Do not be afraid to ask questions and take your time exploring the site.
3. Choose Your Home to Buy in Cyprus
Once you’ve viewed all of the homes in Cyprus, it’s time to decide which one to pursue. That one home should feel suitable for you and your family. The property should provide a clear image of you and your family living there. If the property choices are reasonably priced and pass your quality checks, then it is time to listen to your gut feelings and pick the one that feels right.
4. Reserve Your Potential Home
Because most of the homes for sale in Cyprus are available on the open market, you must reserve that property by paying a reservation fee. The developer will remove the property from the general market and reserve it for you with your reservation.
When you reserve your property, you and the developer will sign a reservation agreement that includes all terms and restrictions. If you believe you need legal counsel before signing this reservation, you should contact a lawyer in Larnaca and ask for assistance.
5. Buy a Home in Cyprus
In Cyprus, the purchase process is quick and straightforward. Following the reserve of your desired property, the following actions must be taken to complete your purchase:
You and the developer sign a Sales Agreement outlining all aspects of the property purchase. The Department of Lands and Surveys can register this agreement to ensure ownership for you.
The developer will seek stage payments as each of the many building phases is completed while your property is under construction. These are documented and followed under the Sales Agreement until the property’s completion and delivery date.
As a buyer, you should consider the following one-time transactional fees in addition to the purchase price of the property:
- Value Added Tax (V.A.T.): 5% of the property value for a first-time buyer in Cyprus if the house is used as the primary and permanent residence, 19% in all other situations.
- Stamp duty is calculated at 0.15-0.20% of the property’s value.
- Deposit for a Sales Agreement: €50
- Fees for Legal Services (optional)
- Foreign exchange expenses (if applicable)
When your property is finished and ready for delivery, the developer will tell you.
6. Delivery of Your Home in Cyprus
You are ready to take possession of your property once all of the processes mentioned above have been accomplished. You are now the legal owner of your property after obtaining the keys and all remaining paperwork. You may now continue decorating your home with the furnishings you choose to make it your own.
If you are considering to buy a home in Cyprus, you are looking at a once-in-a-lifetime opportunity. You may read about our other posts in our blog section on why Cyprus is an excellent place to invest in real estate right now.