For non-Cypriots there is a limit of about 4,000 square meters, on the amount of freehold property they can own in Cyprus.

You are required to pay for your property in foreign currency. Personal checks, bank drafts and transfers are all acceptable.

The same rules apply to Offshore companies wishing to purchase property in Cyprus.
Property in Cyprus is registered on a land registry.

Key points of the buying process:
A preliminary contract is signed. This binds both the buyer and the seller to buy and sell the property on terms and conditions that have been mutually agreed. This is subject to the buyer receiving good title to the property and obtaining the necessary permits from the Cypriot government. At this stage, a symbolical deposit or holding fee (usually a few thousand pounds) is secured with a Lawyer or a Notary, which takes the property off the market.

The buyer’s lawyer then carries out the searches at the District Land Registry to ensure that the seller is indeed the owner making sure that the buyer will obtain good title to the property.

Non-Cypriot citizens require permission from the Council of Ministers to purchase property in Cyprus. If this has not yet been obtained, then the buyer should apply to the council for the permission. It normally takes between 8 and 14 months for the permission to be granted, and without this the Title Deeds of the property cannot be made available to the buyer. However, this permission is granted more or less as a matter of course to all bona fide buyers. In the meantime, however, purchasers may take possession of the property without restriction, given that they have completed the purchase.

Once the searches have proved satisfactory, the two parties then enter into the final contract, which is then registered at the Land Registry. This protects the ownership rights until the title deeds are issued and transferred to the buyer's name, until then the contract cannot be withdrawn, the property can not be leased, sold, transferred or mortgaged.

Application is made at the Central Bank at this time for the necessary permit for the transfer of purchase money. This application is not necessary if both the buyer and the seller are foreigners. The transfer of the title deed is then completed, the full price is paid and the seller gives vacant possession.

Associated Expenses
Upon signing a contract, the buyer is liable to pay stamp duty that amounts to 0.115% of a purchase price up to CYP100.000, and then at a rate of 0.2% on any purchase price in excess
of CYP100.000.

Land registry fees are payable when the ownership of the property is transferred. This is on a sliding scale, ranging from 5% to 8% depending upon the value of the property.

Application to the Council of Ministers fee costs around CYP200.

Lawyer's fees - these will vary according to the amount of work carried out by your lawyer. As a guide one or two percent of the purchase price is normal.

Estate agent’s fees are usually paid for by the seller, although if you are using an estate agent it may be wise to ask if you are required to pay his/her fee.

Mortgage and Finance Options
Mortgage facilities are available for the purchase of property through Cyprus commercial banks. You can generally borrow up to 70% of the lower valuation and purchase price, for a term of 5 to 15 years. The loan will be in foreign currency.

Wills and Inheritance Tax
It is recommended that Cyprus property owners draw up a will to cover their Cyprus property.

Inheritance Tax is payable on Cypriot property and rates are on a sliding scale depending upon the property value. Full professional advice is highly recommended.

Selling a Property
When selling a property the current policy is to allow immediate repatriation of a sum equivalent to the amount of the original purchase value of property. Any profit can be exported at the
rate of CYP10.000 per calendar year, plus any interest.

There is no Capital Gains Tax where the property was acquired by the importation of foreign currency. Otherwise Capital Gains Tax is levied at 20% on gains in excess of CY5.000.