If you are searching for that dream holiday home abroad or simply looking to invest in an overseas property then buying property in Cyprus could be just what you’ve been looking for. Cyprus, or to give its formal title the Republic of Cyprus is a member of the European Union and is one of the largest islands in the Mediterranean located to the south of Turkey. This island destination has been a personal favourite of the British for many years. Cyprus boasts everything that anyone, no matter what their taste or preference, could possibly want. It has year round sunshine, red hot temperatures, white sandy beaches that are complimented by clear turquoise waters, and a culture and a lifestyle that is steeped in history and heritage…The laid-back atmosphere and exotic Mediterranean aura is also a big lure.
With all this in mind, there is little wonder why many Brits consider the island of Cyprus as the place where they would like to buy a second home, whether it be for retirement purposes or from an investment perspective.
Another reason why this lovely island proves popular with Brits is because English is widely spoken there.
For many people that gives them extra comfort and confidence to put down roots there.
Cyprus has the appeal of being very much a home from home.
Investment Property Partners overseas property buyers guide covers a number of important issues that you will need to consider if you are considering buying property in Cyprus either as an investment or as a Cypriot holiday home abroad.
Buying Property in Cyprus
From an investment perspective however, the biggest advantage to buying property in Cyprus proves to be the fact that the country has a positive tax regime which makes it popular with many retirees.
Unheard of in other countries, foreign pensions are currently set at a maximum tax rate of 5 per cent.
Like all countries in the EU, Cyprus up until the global economic downturn, experienced a huge expansion in property development and the country boomed with new investment and housing opportunities springing up everywhere.
Similarly though, like a lot of other countries, the housing boom in Cyprus has slowed due to the effects of the downturn.
It has to be said however, that Cyprus seems to be bouncing back quicker than most, and newly built properties and some off-plan developments are starting to take off again.
Interest in buying property in Cyprus is slowly but surely recovering… and with this in mind, now could be your chance to purchase that dream property for a snip of the price it would have been pre-crash.
Where to Buy Property in Cyprus?
If you are seriously considering buying property in Cyprus then you’ll need to start researching the various destinations over there and what types of property are available… however, we believe that you won’t go far wrong with the areas of Lanarca, Limassol and Paphos.
The Process of Buying Property in Cyprus
All this sounds just wonderful doesn’t it?
But if you are seriously considering buying property in Cyprus and have found your ideal home how do you go about making your Cypriot dream home a reality?
First and foremost, before you get wrapped up in the excitement of it all, you need to take a step back and learn about the Cyprus property market, property laws, the buying process and more.
It is a different country to the UK and will therefore have different laws, rules and regulations with regards to the purchase of property.
You should also thoroughly research areas to make sure you are buying in the right place for both your personal needs and the investment potential… and finally, and probably most importantly, you need to take time to work out whether you can actually afford this property venture.
Can Foreigners Buy Property in Cyprus?
Once you have got to grips with the local rules, regulations, legal processes and arranged finance, the first practical step to take is to establish whether or not you are permitted to buy property in Cyprus.
There are many countries around the world that have very tight regulations about who can purchase in their homeland, so this will need checking out before any property purchase can get off the ground.
Luckily, as a member of the EU there are no restrictions placed on fellow EU members buying a property in Cyprus.
Understanding the Local Legal System
Another big bonus is the fact that the laws in Cyprus is based upon English law, so the property purchase process will be fairly familiar to property investors from the UK, which makes the whole procedure less stressful and more transparent.
Reservation Deposit Agreement
Once you have found your dream holiday home in Cyprus and you have agreed a price with the owner or their representative, a Reservation Deposit Agreement will have to be signed and a deposit will also have to be paid.
The deposit figure is not set in stone and is liable to change depending on the property and such-like, but as a rule-of-thumb it will normally be at least one per cent of the purchase price, and this money will then be paid subject to contract.
After this Reservation Deposit Agreement stage has finished or is at least underway, the property will then be taken off the market for a set period of time.
Carrying out Legal Searches
During the time that the property is off the market, your solicitor will conduct all the necessary searches to make sure that the property title is clean and there are no problematic issues.
Again, much like in the UK, a solicitor will also use this time to ensure that the owner of seller has the legal right to sell and that the property is not associated with any debts or dubious dealings.
The Contract of Sale
If everything comes back clear from your solicitor’s searches, the property sale process can then move onto the ‘Contract of Sale’ stage.
During this important stage the buyer has a set period of time within which to make payment to the seller.
Once full payment has been made, that’s pretty much it; possession of the property is just about complete and only a few finer details will need ironing out.
The title deed to the property will transfer from the seller to the buyer following this stage.
The Property Sales Process… Just like in the UK!
To reiterate, Cyprus is not only appealing because of its white sandy beaches, clear blue seas, culture, laid-back atmosphere and exotic Mediterranean aura, it is also in demand because the whole property buying and selling process is pretty much like it is in UK.
This means that if you are buying property in Cyprus most of the time things are fairly clear cut and transparent, so there’s less risk of being caught out by some local rule or regulation, and so more time can be spent focussing on your prospective property purchase and making it work for you, rather than getting to grips with an unknown and hard-to-understand property legal system.
Overseas Property Investment Solutions
As a leading independent property and land investment specialists Investment Property Partners offer expert advice and support to clients across our specialist areas of expertise helping them to achieve their investment objectives.
If you are an investor searching for overseas property investment opportunities or a second home in Cyprus please contact us today to discuss how Investment Property Partners can help you.
More information about Cyprus… here →
More about and buying property in Cyprus from the Cyprus Real Estate Agents Association… here →