How to Buy a Home in Cyprus

Buying a home in Cyprus can be an exciting prospect for expats, offering a chance to own a piece of the Mediterranean paradise. However, the process can be complex, with various legal and financial considerations to take into account. This guide aims to provide a comprehensive overview of the key aspects of buying a home in Cyprus, from finding properties to understanding the legal requirements and potential pitfalls.

How do I find houses for sale in Cyprus?

There are several ways to find houses for sale in Cyprus. Online property portals and websites are a popular choice, offering a wide range of listings from across the country. Local newspapers and real estate agencies are also good sources of information. Additionally, word-of-mouth can be a powerful tool, especially in smaller communities. It's also worth considering hiring a real estate agent who specializes in helping expats find properties in Cyprus.

Are there restrictions on foreigners owning property in Cyprus?

Yes, there are some restrictions on foreigners owning property in Cyprus. Non-EU citizens are allowed to buy one home or a piece of land up to 4,014 square meters. However, they need to obtain permission from the Council of Ministers, which can take several months. EU citizens who live in Cyprus can buy as much property as they want. These restrictions can be legally bypassed by setting up a Cypriot company and buying the property through it.

Does Cyprus have an MLS type system?

Cyprus does not have a Multiple Listing Service (MLS) like in the United States. Instead, each real estate agency has its own listings. This means that buyers may need to check with multiple agencies to find all available properties.

Do brokers have licenses and how do I know if they are licensed?

Yes, real estate brokers in Cyprus must be licensed. They are regulated by the Cyprus Real Estate Agents Association (CREAA). You can check if a broker is licensed by asking to see their license or by contacting the CREAA.

What documents are required when buying a home?

When buying a home in Cyprus, you will need several documents. These include your passport, proof of address, a bank reference letter, and a sales agreement. If you're buying as a company, you'll also need the company's registration documents. The sales agreement must be stamped and registered at the District Lands Office within 60 days of signing.

Do I need a lawyer when buying a home in Cyprus?

Yes, it's highly recommended to hire a lawyer when buying a home in Cyprus. A lawyer can help you navigate the complex legal process, ensure all documents are correct, and protect your interests. The cost of a lawyer can vary, but it's typically around 1% of the property's purchase price.

Do people typically buy a property with all cash or take out a mortgage?

Both options are common in Cyprus. Some people choose to buy a property outright with cash, while others prefer to take out a mortgage. Cyprus banks offer mortgages to both residents and non-residents, although the terms and conditions may vary.

Are there inspections that take place, and if so what is that process like?

Yes, property inspections are a standard part of the home buying process in Cyprus. A surveyor will inspect the property to check for any structural issues, and a valuation will be carried out to determine the property's market value. This process can help you avoid any unexpected costs or issues down the line.

What are some of the pitfalls to avoid when buying property in Cyprus?

There are several pitfalls to avoid when buying property in Cyprus. These include not thoroughly checking the property's title deeds, not having a proper survey done, and not fully understanding the terms of the contract. It's also important to be aware of potential additional costs, such as transfer fees and property taxes. Hiring a reputable real estate agent and lawyer can help you avoid these pitfalls.