There is nothing better than first hand experience to provide an article that guides people through the potential hurdles of buying property in Cyprus. I purchased through a large developer and commissioned a custom home to be built. What I certainly didn’t do was start learning the ropes. I had to learn, but not the hard way! It is said that property buyers often leave their brains at the airport. Don’t let it be you!
The first thing is to make sure that the property or parcel of land is what you want to meet your housing needs, whether it is for vacation use or permanent housing in relocation. If you are buying to let or investing, you should also do a good study of costs and likely returns.
In addition, there will be laws and regulations to follow and comply with, as well as taxes to pay both at the place of origin and in Cyprus.
When buying off-plan, I went to look at other properties the developer had built and talk to one or two owners. I then went over the plans for the place I wanted to buy and the general development at the developer’s offices asking a lot of questions to make sure I knew the layout of the house and its gardens. And I also looked at the standard finishes on the samples in the office to make sure I wouldn’t have to pay more for something half decent.
Only then, several hours later, did I venture onto the site and, having fully understood the plans, put the location in context, including the house in relation to other houses and the sun.
Then return to the office to negotiate a price that includes any extras or minor modifications to the property. Discounts are always available if you ask, but don’t expect to come back a few days or weeks later to nibble on the price. Ask to see the contract and ask the developer’s legal department to explain everything. Is there a penalty clause for subsequent delivery? Can you cancel? Are there any legal costs if you want to sell before the deeds are issued? Does the property have planning permission and a building permit?
Then go and find an independent local lawyer, who has no relation to the developer and is registered with the Cyprus Bar Association. Discuss your fees for the legal process of buying, and then ask your attorney to explain how the formal process works and how your interests will be protected from the time you pay the developer for the home until you get possession and title to it. property. they are ultimately issued in your name and you pay your land transfer tax and real property tax. Even if you are an EU citizen, you will need to obtain a permit to own property in Cyprus, unless you are already registered as a permanent resident of Cyprus. Also ask your lawyer to help you open a bank account, a power of attorney to act on your behalf, and water and electricity supply by direct debit. Saves a lot of time and hassle later when you can’t wait to move.
Not much about money so far. How much will you pay as a non-refundable deposit? Credit card or cash?
But do you need a local mortgage to pay the rest? Do you need a guarantee to your developer’s bank? What will it cost? In what currency to borrow? How long do you want a mortgage? doctors? Life insurance? Evidence of earnings? Copy of passport? A plethora of things to fix before flying home.
Internship payments. You don’t want to pay for anything, so be sure to appoint a qualified RICS surveyor to check the construction as you go and before each payment you make. They can also ensure that a property is delivered to you almost free of encumbrances, leaving very little to cover with the final retention payment paid after possession.
Or will you be raising the funds against another property back home? How long will that take and how does it fit in with the phased payment schedule?
So much to remember and not everything is written in this article. But there is often plenty of help and advice available from other people who have done it before you on the internet or at a local library in your country.
Good luck buying a property in Cyprus, your dream home, enjoy it.