The procedure for purchasing property in Cyprus





Information about the Cyprus. Geography, history, population, map, coat of arms, visa
In Cyprus, foreign individuals and legal entities can buy residential property. The only restriction: a foreign citizen can acquire in his name only one property. This problem is easily solved: you can write other real estate objects to family members. Purchase of commercial real estate can be made only to a legal entity registered in Cyprus.
 
Typically, in Cyprus, buy the primary market at the construction stage (among the popular villas), although there is also ready housing (usually apartments). Therefore, contracts are usually concluded directly with the developer.
 
HOW TO GET THERE
 
Between Russia and Cyprus air flights are established. Available flights - Moscow - Larnaca, Moscow - Paphos, Moscow - Limassol, St. Petersburg - Larnaca, St. Petersburg - Paphos. Inside the island there is a bus and road connection, there are no railways in Cyprus.
 
In the absence of the opportunity to come to Cyprus, you can contact the real estate agency, which will provide the buyer with detailed information about the facility. Perhaps remote acquisition of real estate in Cyprus, but this practice is not widely distributed.
 
WITH WHAT TO START THE PURCHASE PROCESS
 
After selecting an object, you need to open a bank account to make payments to the seller. Among Cypriot banks working with foreigners, it is worth highlighting Bank Of Cyprus, Laiki Bank, Hellenic Bank and Alpha Bank. The account opens in euros. To open it, an individual needs only a passport. The minimum deposit for a bank account in Cyprus is? 10.
 
HOW DOES THE DEAL
 
Once the buyer has chosen a property, he makes a deposit of? 5-10 thousand. The deposit is not refundable if the buyer subsequently declined the purchase.
 
The signing of the contract of sale must take place within a month after making a deposit. It should be remembered that in the design of all documents a lawyer is necessarily involved. The contract of sale (contract) can be signed in the presence of a notary, both in Cyprus and in Russia, in the representative office of the Cyprus company. It is signed in duplicate, is binding for both the buyer and the seller and must be enforced on all points. It should clearly describe the object and stipulate the payment procedure. When signing a contract, 30% of the cost of the object is paid.
 
The lawyer on the part of the buyer directs all the necessary inquiries required by the district Land Registry Office, ensuring that the seller of the real estate is the actual owner thereof, and the buyer acquires a real title to the property.
 
RELATED COSTS
 
When buying a property in Cyprus, the buyer pays a stamp duty of about? 2.6 for every £ 1,700 if the value of the object does not exceed? 170 thousand, and? 3.4 at £ 1,700 at a higher price. In order to transfer the right of free ownership of real estate to the buyer's name, it is necessary to pay a tax on the transfer of ownership (3% at an object value of up to? 85 thousand, 5% from 85 to? 170 thousand, 8% over? 170 thousand). After acquiring the title of ownership, the owner is required to pay an annual tax. Real estate is cheaper? 170 thousand is not taxed, with a cost of up to? 427 thousand tax is 0.2%, up to? 855 thousand - 0.3%, over? 855 thousand - 0.35%.
 
The objects approved before the accession of Cyprus to the European Union in 2004 were not subject to VAT - at the moment some of these objects are still on sale. All objects approved after 2004 are subject to VAT at a rate of 15%.
 
STATE REGISTRATION OF TRANSACTIONS
 
After the conclusion of the contract, the foreign buyer (the lawyer involved in the transaction) must submit a written application to the Council of Ministers for approval of the purchase and a copy of the passport, and within a month pay stamp duty in the Department of Internal Taxes.
 
Documents to the district land commission are submitted no later than two months from the date of signing the contract for entry into the Property Register. This is necessary for its registration and is carried out in order to protect the interests of the buyer. The procedure takes place in the Land Chamber. The registration fixes the legal rights to the buyer's property until an individual certificate of ownership of the property is received and guarantees protection from resale, purchase, lease or mortgage of the property without his knowledge. The registration procedure is carried out by the developer.
 
After payment by the buyer to the seller of the entire amount under the contract, the final approval of the Cabinet of Ministers for the acquisition of real estate takes place. For the final transfer of property and the title of foreigner, the following documents are required: application submitted to the Regional Land Chamber, receipts for payment of the registration fee and property tax.
 
The application shall be accompanied by a copy of the permit of the Council of Ministers, a certificate received from the Central Bank, invoices confirming the payment of all taxes on the purchase and registration of property, and a registration certificate

Upon receipt of the title, it is necessary to have a personal presence of the buyer and seller. The deal is registered with the Land Commission, it takes about a week. The date of acceptance and transfer of real estate is indicated in the contract. After this date, you can already enter.

The land on which the property is located is also registered as a property.

MORTGAGE IN CYPRUS

In Cypriot banks, Russians without any problems are given permission for a mortgage. Banks that work with mortgage lending, four - Bank of Cyprus, Laiki Bank, Hellenic Bank, and Alpha Bank. Representative offices of Bank of Cyprus and Hellenic Bank are in St. Petersburg. The amount can be any, depending on the purchase price and the financial condition of the buyer. Typically, the bank gives from 60 to 70% of the value of real estate, the interest rate is 5.5-7%, depending on the currency in which the transaction is carried out. Buying property in Cyprus with a loan in a Russian bank is financially unprofitable, and consideration in this case takes a very long time.

Documents for obtaining a mortgage loan are submitted after signing the contract of sale and its registration with the Land Committee. To consider an application, banks require the following information about the borrower:
- Personal information about the client (person, employment, which is not on the international wanted list);
- a copy of the passport;
- a bank statement of the existing debt (if any);
- a letter of recommendation from a non-resident bank;
- declaration of personal income;
- certificate of income;
- the original contract for the sale of real estate;
- copies of bank statements for the last three to six months;
- copies of payments already made in respect of the property;
- Information on payments on loans received earlier;
- Opening of a bank account (with the amount of about? 200);
- permission from local authorities;
- confirmation of payment of stamp duty.

The procedure for processing the application takes from 7 to 14 business days. As a rule, if the buyer is creditworthy and is not on the international wanted list, loan applications are approved, if these conditions are not met, the developer returns 30% of the cost paid at the signing of the contract.

PECULIARITIES OF PURCHASE OF VARIOUS TYPES OF REAL ESTATE

Under construction housing

The procedure for buying a house under construction is the same as that of a finished one, only the terms of delivery and payment by installments are fixed in the contract. If the housing is still under construction, an interest-free installment payment is possible upon agreement with the developer. The building permit is obtained not by the buyer, but by the developer. Some buyers are worried that when buying a building under construction, the seller can postpone the construction dates or even abandon their obligations. In practice, the risk when buying a property under construction in Cyprus is small: the payment is evenly distributed over the construction stages, the first installment does not exceed 35%. In the event of default or postponement of the costs, the buyer's costs will be reimbursed.

When buying a real estate under construction, most companies offer the buyer an inspection tour, which makes it possible to track the progress of construction. It is very important to follow the schedule of payments fixed in the contract, as in case of violation it will have to pay certain penalties. After the construction is completed, an acceptance certificate is signed. The transfer of ownership in this case occurs after the delivery of the entire complex, where the property is located.
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