A step-by-step approach on how to buy a property in Cyprus.

If you are a Cypriot or a foreigner interested in buying a piece of land, an apartment, a house, or generally interested in making a good investment of your money this guide will give you an easy approach on how to do it easily and safely.

Stage 1: Choosing the property.

The first step of buying a property is first of all choosing what you like. It’s probably the hardest stage of buying a property. When choosing a property the English people say that you should think of three things: Location, location and location. What makes a true value of your money is your property’s location. If you are buying as an investment you should choose a property close to the center of the city because it’s much easier to resell. If the property is going to be your new home or your holiday villa it’s better to be in a quiet location but not too far from all amenities, schools and supermarkets.

Stage 2: Paying for the property.

You will need to decide how you will pay for your property. There are three options:

• Buy for cash: a straightforward option. If you have the money the process is real easy. But if you decide to resell it ay profit will be taxed.
• Re-mortgage your main home, if you are buying a second home, to raise the cash: again, a straightforward option and one that doesn't involve you having to deal with anyone except your present lender or another mortgage lender in your country of primary residence. Your home may be repossessed if you do not keep up repayments on your mortgage, so you may be putting your main home at risk for the sake of a holiday home.
• Finance your property with a mortgage from a Cyprus bank. This can be in the currency of your choice and you will need to decide on how many years you want to repay your loan.

Stage 3: Reserving the property.

In order to reserve a property first of all you need to sign a reservation form. This form will keep you legally safe that this property will only be sold to you. If of course you fulfill all the requirements in the contract. Upon signing the reservation form you will probably need to pay a small deposit an amount of 1000 euro to 2000 depending on the value of the property.

Apart from the reserving deposit if you are financing your property with a mortgage from the bank at this point you should take all necessary papers to the bank such as the reservation form so the bank can arrange your mortgage. Be aware that Cyprus banks nowadays only offer the 60%-70% of the property’s value as a loan. So the rest of the amount will be paid without a loan.

Stage 4: Legal fees.

For any property, be prepared to pay around 0.75% of the purchase price as the cost for the legal fees. For a newly build property do not use the developers' lawyer even if it is offered free. Get independent advice. There will also be Stamp Duty on the contract price; this is calculated as CYP 1.5 per thousand pounds up to CYP 100,000 and 0.2% over CYP 100,000. The contract can be written in English, and should be if this is your native tongue.

Stage 5: Documents needed for signing the contracts of sale.

1. a photocopy of the page of your passport showing your photograph and personal details
2. Proof of your residential address such as a copy of current bill showing your address
3. All contact information such as fax numbers and email addresses.
4. At this stage it is important that you are ready to provide the following information: Occupation, marital status, number and ages of children, religion, and approximate annual income.

Stage 6: Signing the contracts

Once the Sales agreement is prepared, it will be sent to you for approval. You need to read the agreement very well and ask about anything you don’t understand to be explained to you. At this point it would be wise that the agreement be sent also to your lawyer so he can review it also.

Once you have approved the agreement it can be signed by both you the purchaser and the vendor. The agreement will be taken to the local tax office where stamp duty will be paid and the revenue stamps placed on the original document. After that the original agreement will be deposited in the land registry office. This procedure must be completed within 60 days of signing the agreement and no extensions under any circumstances are granted.

When the agreement is accepted by the land registry office you now fully own the property and you are even entitled in reselling it.

If you have completed all this steps as shown above, will make you life easier and am sure you won’t have problems of any type during your buying process.