Why Cyprus

Why Cyprus

Property Investment in Cyprus - Why Invest in Cyprus?
2001 saw a huge rise in property sales to many foreigners, especially the British, buying then to beat the forecast property boom. Cyprus became a full member of the EU in 2004, and as anticipated, after that date membership increased demand and prices for holiday and retirement homes.

Not only do you get the lifestyle, the climate, and the sheer pleasure of living there, but also relax and see the value of the property appreciate considerably. Land prices have risen recently as Developers are acquiring large plots and holding them awaiting permission to develop. All the signs suggest that there has never been a better time to invest and buy property in Cyprus. The Cyprus pound is supported by a good banking system, with about five major banks. These all adhere to the British method of banking. Weights and measures are metric. There is a well-developed insurance industry on the island, which can handle all types of cover. The Euro will become the Cypriot currency in due course.

How to Become a Property Owner in Cyprus
Non-Cypriot citizens are permitted to acquire one of the following: an apartment or house or a building plot of land up to three donums (4,014m2). Offshore entities may also acquire premises for their business (with restrictions) or as a residence for their non-Cypriot employees, provided the residence is registered in the employee’s name. These restrictions on the acquisition of property will be lifted for EU-citizens from 2009. We offer a friendly complimentary consultation service on all of these points, without obligation.

FINANCING YOUR PROPERTY PURCHASE
Many clients prefer outright payment of their property, but it’s good to know that financing is available, if required. The most commonly used financing options in Cyprus and abroad are as follows:

1. Mortgage or loan in your home country
If you own a property in your home country, equity can be released by way of arranging a mortgage or loan against this. This service is provided directly by most UK banks and building societies, or you can seek advice from an independent mortgage adviser.

We can refer you to professional financial advisers in the UK who will analyse your financial needs, advise on various types of mortgage schemes, and find the best mortgage deal for you. Any advice given is confidential and without obligation.

2. Loan in Cyprus
If you prefer to arrange for financing in Cyprus, as a large and reputable property developer, we can assist you in obtaining a bank loan on the best available terms. Loans in Cyprus are usually given for up to around 70% of the property value. Repayment periods range from around 10 to 20 years, depending on the currency of the loan. As most property in Cyprus is currently sold off-plan, we provide the bank guarantee required as collateral with the cost being borne by the purchaser.

SELECT AND RESERVE YOUR PROPERTY
If you have set your heart on a particular property, you can fix the purchase price and take the property off the market for a reservation fee of CYP 1,000-2,000. If you change your mind within 30 days, as part of our flexible client service, reservation fees are transferable for a period of 1 year to another property, or to another family member for the same or another property. When you proceed with your purchase, the reservation fee is, of course, deductible from the purchase price.

EASY TERMS OF PAYMENT
Due to the high demand for property in Cyprus, most properties coming onto the market are currently purchased off-plan. Following receipt of the reservation fee on the property of your choice, our standard payment terms are payment of a 30% deposit within 30 days of signing the contract of sale. The remaining stage payments are due between the date of contract signature and completion of your property. We are flexible on the schedule of stage payments, taking individual client requirements into account.

For your peace of mind and to ensure you are absolutely happy, we furthermore agree on a considerable final payment installment upon completion and delivery of your new property to you.
Please note that for our property re-sales, separate payment terms are in place. Please ask us about these.

SOLICITOR’S FEE
We always recommend our clients to take independent legal advice from a local English speaking lawyer, familiar with assisting non-Cypriots in purchasing property in Cyprus. Solicitor’s fees are around 1% of the property purchase price and we can refer you to a number of reputable lawyers in Cyprus to represent your interests.

CONTRACT OF SALE
The Cypriot legal system is based on the British one. All contracts of sale are private agreements between the vendor and purchaser and must, by law, be in writing. To ensure you understand everything, naturally, we formulate these in plain English.

FILING YOUR CONTRACT OF SALE WITH THE LAND REGISTRY
To protect your beneficial rights to property ownership, you must always ensure that your lawyer has filed your contract of sale with the land registry as soon as possible, but no later than 60 days after signing the contract. This filing incurs only a nominal fee, and more importantly ensures that your rights to the property are legally protected by the so-called “specific performance”. Your contract of sale, once held at the land registry, cannot be withdrawn by anyone, and therefore the property cannot be leased, sold, transferred or mortgaged by anyone other than the purchaser from this point on.
Contract Filing Fee CYP 1.00