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Stone properties and villas for sale in villages in and around Paphos and Polis, Cyprus.
A luxury, stone-built villa or a value for money stone-built property in Polemi, Giolou, Stroumpi, Simou, Drymou, Argaka, Pomos or Kili are all available or under construction NOW! |
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| You are here > Home > About > Buying your property in Cyprus for EU citizens |
 When you purchase a property as a fist time buyer in Cyprus, which had planning permission granted after the 1st May 2004, it is eligible for VAT at 15%. However, you will be entitled to a reimbursement of 2/3 of your payment, thus making the total VAT paid only 5%. This is subject to you proving Cyprus is your habitual residence. When you purchase a second property or are not habitually resident in Cyprus, which had planning permission granted after the 1st May 2004, the purchase is liable to VAT at 15%. If VAT is due on a property it is calculated on the the difference between the contract of sale price less the construction cost. Please note that any reimbursement available is calculated on up to 135m² of covered habitable living area of the property, thereafter any covered habitable covered area of the property is subject to VAT at 15%. If you are buying a new property it is advisable to have the land transferred to your name first and a separate construction contract for the building of the property, since this will keep the overall value of the contract down and VAT should be calculated on this lower amount. As of 1st January 2008 land is the subject to VAT at 15%. A foreigner who is working in Cyprus and wishes to construct a building can do so from finances generated locally. A foreigner can sell his property subject to local taxation, if any, and buy another one. Any legitimate repeat purchaser will be granted a permit. A foreign purchaser may let his property for periods exceeding 28 days to a resident of Cyprus. This does not apply to office premises.  Transfer fees are calculated on a sliding scale.
Example: Property value is 110,000 Cyprus pounds
 Recent land classification changes have taken place and you should observe the following carefully: (a) What is the build factor for the land in percentage terms? This will determine what size and type of property is/was possible. (b) Classification of the plot will determine what you can do on the land. (c) Proximity rules - where the land is close to a monument, green area, the sea or others, there are special rules in place and this will affect what and where you can build, if at all. Rule of thumb is approximately 300ft to the sea, known as a No Build Zone. Where ancient monuments are concerned, check with the Antiquities Department. (d) The most important factor is to establish where the access to the land is. It must be directly touching a municipal road or have access to such a road at less than 600ft and be less than 12ft in width. In such a case, you will be granted a building permit for one property regardless of the size of the land and have ‘Right of Way’ across neighbouring land.  |
Buying your property in Cyprus for EU citizens. (We take no responsibility for the accuracy of this information and advise you to contact a solicitor. Laws are changing and being implemented regularly and, as such, you should definitely seek professional legal advice.) So, you already know that Cyprus, and particularly Pafos, is a great place to buy a property for investment purposes or purely on its merits as a great place to live, work or holiday. Since joining the EU on 1st May 2004, Cyprus plans to completely de-restrict the housing/property sector. These plans will be completed in three stages: 2007, 2009 and 2011, at which point Cyprus will be in line with the rest of Europe. Below are some guidelines for you to observe. A European planning to live in Cyprus permanently for the next five years may purchase as much property as they like, on the condition that they can prove their intentions are genuine. A non-resident purchaser can buy one property or build one property on up to three donums of land (4014m² plot). A foreigner may buy as much agricultural land as he/she likes, as long as they don’t build on it (under current legislation). Resale property can be purchased by residents of Cyprus and transfer of the Title Deeds can be completed in as little as two days, assuming they are available and all other taxes and outstanding bills have been paid to date. However there is no obligation to transfer Title Deeds immediately and the purchasers can delay this process and pay the transfer tax when they are ready. When you purchase a property, which had planning permission granted prior to 1st May 2004, it is VAT exempted. Basically the builder absorbs the VAT as the last one in the taxation chain.  Generally, all foreigners are permitted to acquire house/business premises in Cyprus, provided they have: • No criminal record in their own country or in Cyprus. • The resources to support themselves in Cyprus. Approximately an annual income of 20,000 Euro per couple is sufficient. • Meet the criteria laid down by a bank where a mortgage is required. • Companies with uncertain ownership or a doubtful business are not viewed favourably. Buying your property in Cyprus. Application form Cyprus has stringent laws regarding trading in property and as such you are advised to consider taxation at up to 40% of the profits. Generally, you would not be considered a trader if you bought and sold every five years. A purchase/lease contract regarding real estate would still be valid if the Ministerial Council or the District Officer rejected a foreigner's request. It is recommended that a provision for such an event be included in the contract. Therefore a refund or other remedy is covered, although it is an unlikely occurrence. Applications to the Ministerial Council take approximately three-four months if the documentation is satisfactory.  The application process is as follows: Complete and submit the application form to the Ministerial Council or to the District Officer of the area where the property is situated. Click here to view a form. *Special Note: If the Title Deed of the property you are purchasing is not available for transfer immediately, you are strongly advised to file your purchase agreement at the District Land Registry within two months of signing. This will protect you from the seller changing his mind or re-selling the property. In particular, you will be able to enforce ‘Specific Performance’ through the courts and the property will be transferred to your name as soon as the deed becomes available, and you fulfil your legal obligations. The process referred to as ‘Specific Performance’ is a statutory provision created to protect the purchaser, in particular to oblige the vendor to carry out his promises and obligations. The application to transfer property should be presented to the District Land Registry together with the following documents: • The Purchase Agreement/Contract of Sale. • A copy of the Ministerial Council's consent certificate to acquire the said property by purchaser (if non-resident). • Title Deed of the property if available. • Proof by way of receipts for payment of all property and municipal taxes to date for Tax Clearance Certificate by vendor (if a resale). *Special Note: The District Land Officer is obliged to check the declared value against similar properties of the locality where the property is situated in order to determine the amount of transfer fees due. Where discrepancies occur the District Land Valuers will assess the amount of transfer tax due based on the market price at point of sale, namely the date on the contract.  To apply for building permission you must submit your application via an approved architect or civil engineer. In the first instance, you must contact the Paphos Town Planning Office or the planning office of the local municipality. Once you have the first permit you need to apply for and obtain a regular build permit. You apply for this at the town district authority or the technical services department of the local municipality. With these permits you are able to begin building your property. Once the building is constructed in accordance with the plans that were submitted, you should apply for a certificate of completion. Developers and construction companies generally make all the necessary applications on your behalf. Services refer to the supply of water, electricity, telephone, planned road or right of access if your plot is isolated between other plots. If you purchase an isolated plot, under Cypriot law the owner of an adjoining plot must give you a three-metre-wide right of access to your plot across his land to a public road. On such plots you are allowed to build one house. More advice for land buyers: The building factor assigned to land is controlled by the local authorities. 90% is the maximum permissible coverage of a plot possible, excluding storage areas. This refers to one-storey buildings. 100% and over refers to two- or three-storey buildings on smaller pieces of land. When building permission has already been granted, all the relevant authorities concerned have approved the building design and agreed to its construction. Your plans will be stamped and the property will be inspected during construction. Your application must be submitted by an approved architect or civil engineer. The local water authority will give you a quote to supply you with water. However they are not obliged to do so. The electricity authority is obliged to supply you with electricity and will give you a quote on request. The national telephone company will also give you a quote to supply you with a telephone line on request. Building permits will not be granted unless you are on a public road or you have/will receive right of way to your plot. In this case only one property may be built. Village house buyers should note that certain traditional houses may be eligible for an improvement grant from the government. Check this with an architect. |
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