The Tailored Home Property Buying Guide to Cyprus

NB The information contained here is relevant to the (Greek-Cypriot controlled) Republic of Cyprus. Turkish forces have occupied the northern part of the island since 1974 and the country is currently divided by a UN-controlled “Green Line”. Turkey is the only country in the world that recognises the “Turkish Republic of Northern Cyprus” (Northern Cyprus) as a legal nation in its own right.
 
The laws and legal procedures governing property ownership in Northern Cyprus are very different from those in the south. Those considering purchasing there should exercise extreme caution, as there remains considerable uncertainty of the legality of title of property in the North that was abandoned by Greek-Cypriots fleeing the occupying forces. Visiting Northern Cyprus can also jeopardise your right of entry to the south as well as your entitlement to live and own property there.

Overview
TailoredHome.co.uk’s Property Buying Guide to Cyprus can help you select your ideal home in Cyprus. The island is a great favourite with British tourists and property buyers thanks to its wonderful year-round climate and cultural links to the UK. English is widely spoken, cars are driven on the left of the road and there remains a great deal of influence from the days when Cyprus was under British control. There is a well-established expat community of cypriot property owners already enjoying the modest cost of living, low crime rate and high standards of healthcare.

With hot summers and mild winters, Cyprus is ideal for those looking for a year-round holiday home or re-location/retirement location. There are numerous golf courses and with well over 300 sunshine days every year, there will rarely be a day when you can’t play a round. Sun worshippers can enjoy a lazy day on one of many high-quality beaches or take to the water for diving, sailing or water-skiing in the clear blue Mediterranean. Alternatively, head inland to enjoy a quieter pace of life in the countryside.
 
There is a wide range of property in cyprus on the market across the country, from Paphos in the west to Famagusta in the east, encompassing small holiday apartments, luxury golf villas and traditional rural homes ripe for renovation. The legal process is straightforward and British buyers have few practical restrictions on living and buying a home in Cyprus. A number of providers offer mortgages for property there.
 
Whatever type of property you’re looking for, the property finders at TailoredHome.co.uk can source a home in Cyprus for you that fits your budget and requirements.
 
Property hotspots

Paphos
Paphos region, in the west of Cyprus, is generally considered to be one of the island’s most picturesque areas, with lush countryside, excellent beaches, an array of large and small resorts and many spectacular views over the Mediterranean towards the setting sun. The city of Paphos itself is one of two distinct halves, its traditional Old Town overlooking the New Town.
 
With property prices generally higher than other parts of Cyprus, the region is home to three golf courses at present, including the internationally acclaimed Aphrodite Hills, all within a short drive from the city’s international airport. There are also plans (approved by the government, though details are somewhat vague at the moment) to construct a large marina close to popular Coral Bay, which will increase its appeal to affluent tourists.

Limassol
Roughly equidistant from Cyprus’s two international airports, the country’s commercial centre has some 29 kilometres (18 miles) of coastline and some delightful countryside within just a short drive from the heart of the city. Property on the coast, in the city centre and the surrounding villages has attracted many overseas buyers already.
 
North of the city, homes in the foothills of the Troodos mountains are a popular choice for those who want to escape the crowds and stifling summer temperatures of the city. Golf enthusiasts will enjoy the facilities of the region’s courses and a proposed new marina (one of two planned by the Cypriot government) will expand Limassol’s already broad range of property.

Famagusta
The region of Famagusta covers a large area of eastern Cyprus, though much of it, including the port of the same name, is now in the Turkish-occupied Northern Cyprus. However, its south-eastern corner remains south of the UN Green Line and has some thriving resorts along its coast.
 
The seas around here are especially popular with divers and water sports fanatics and the beaches are among the best in Cyprus. Most notable are those in the busy resort of Protaras and further along the coast at Ayia Napa, once a small fishing village, now transformed into one of the island’s most bustling holiday hotspots.
 
Tourism
Cyprus has a wealth of natural and manmade attractions that have attracted many European tourists, especially from the UK and, increasingly, Russia. There are many archaeological treasures illustrating the island’s colourful history, many beautiful Blue Flag beaches, traditional villages and several excellent golf courses. There are also plans for more courses and new marinas, further expanding its appeal. A number of airlines operate regular services to Paphos and Larnaca from various airports around the UK and the island is a popular stop-off on Mediterranean cruises.
 
2005 – 2.47 million visitors
2006 – 2.40 million visitors
2007 – 2.41 million visitors
 
Climate
There’s not much regional variation in climate around Cyprus, except for the peak of Mount Olympus in the Troodos range that has snow (and even offers skiing, for a short time) in the winter. In general the country enjoys a dry, sunny and warm climate year-round, which is one of the factors in its popularity with retirees.
 
Location Summer (Jun-Sep) Min/Max Winter (Dec-Feb) Min/Max
Paphos 18ºC/30ºC 8ºC/16ºC
Limassol 18ºC/32ºC 6ºC/16ºC
Famagusta 19ºC/31ºC 7ºC/17ºC

 
Fast facts
Currency
Euro (EUR). GBP1.00=EUR1.07 (Jan 2009). You may still find some references to the Cypriot Pound (CYP, GBP1.00 = CYP0.61) which was replaced by the euro in January 2008.

Population
792,000 (2008 estimate)

Time zone
GMT 2

Visas
Citizens of the UK and other EU countries are not required to obtain visas to visit, work or buy a home in Cyprus. However, those who have their passports stamped from visiting the “Turkish Republic of Northern Cyprus” (Northern Cyprus) may be refused entry to the southern Republic of Cyprus. 

Buying process
Ownership restrictions
Foreigners with Cypriot residency are not restricted in the type and amount of property they can buy in Cyprus. Non-resident foreigners are restricted to owning one house or apartment, and a maximum of around 0.4 hectares (one acre) of land.
 
Cyprus’s accession to the EU has prompted its government to open up the cypriot property market and these restrictions are expected to be lifted for EU citizens over the next few years.
 
All non-Cypriot buyers must seek permission to own property from the Council of Ministers, though this is generally a formality (it is said that no UK citizen has ever been refused permission to buy).
Financial
A Cypriot bank account is undoubtedly helpful when buying a home in Cyprus. There are a number of banks there that provide accounts for residents and non-residents alike, and there are some branches of the Bank of Cyprus in major UK cities. Shop around to establish which bank offers the best fees and facilities (e.g. internet banking, overdrafts etc.) for you.

Mortgage availability
A Loan-to-Value (LTV) of around 60% is typically available for loans to non-residents; residents may be granted up to 80% of the property value. The amount offered is usually calculated on the applicant’s net pay (your other monthly outgoings should not exceed 35% of total net pay) and any proposed rental income is disregarded in the calculation.

Legal
The property buying process in Cyprus is safe and well established, though quite different from the system in the UK:
- On finding a property in cyprus to buy, the buyer may be asked to pay a holding deposit to take the property off the market while his lawyer draws up a sale contract and undertakes legal checks to verify the legality of the transfer of ownership. Normally, this holding deposit is refundable if the legal checks result in the purchase being aborted.
- The lawyer’s checks do not cover everything and the buyer is also advised to check himself (or get the estate agent to check) with the Town Planning Department to determine if there are any plans afoot which may impact on the property in question.
- The buyer accepts the property in the condition that it is in when he signs the sale contract, so it is vital to check the state of the property at that time and ensure it is satisfactory.
- Both buyer and seller sign the contract of sale and the balance of monies is paid over to the seller.
- For non-residents, it is then necessary to apply to the Council of Ministers to seek approval of the purchase. This is merely a formality in most cases. It may take a matter of months for this permission to be granted but it will not hold up the sale.
- The transfer tax is paid over only when the new title deeds are issued, a process that may take up to five years. 

Transaction costs
The costs involved in purchasing a home in Cyprus are:
- Transfer tax – Based on the assessed market value of the property (as determined by the Land Registry), the transfer tax is charged on a sliding scale and ranges from 3% to 8% of the property’s value.
- Legal fees – There are no fixed legal fees in Cyprus so shop around for the best deal on expert legal advise. Expect to pay in the region of EUR900 (£840) to EUR1,800 (£1680).
- Stamp duty – The first CYP100,000 (£161,000) of the property value is charged at 0.15%, then at 2% for the remainder of the value above that threshold.
- Value Added Tax (VAT) – VAT is charged at 15% on new-build property and land purchases. In the case of first-time buyers, a refund of 10% is reclaimable from the Cypriot VAT authorities, effectively bringing the rate done to only 5%.
- Agent’s fee – The estate agent’s fee is the responsibility of the vendor.
 
Also allow costs for UK lawyers’ fees, mortgage arrangement fees, survey fees, translation fees and foreign exchange transfer charges.

Emigration
As EU citizens, Britons looking to move to Cyprus have few restrictions on visiting, working, living in or buying property in Cyprus. Non-Cypriot property owners are entitled to a Residence Permit automatically.
 
There are a number of different Residence Permits available for those who are working, self-employed or retired. Retirees are not permitted to do any paid work in Cyprus and must prove they have sufficient means to live comfortably without obtaining financial support from the Cypriot authorities. After a period of five years, retirees may apply for Permanent Residence.
 
As with short-term visits, if you hold a passport issued by the “Turkish Republic of Northern Cyprus”, have entered Cyprus via a port in the occupied North or even have a passport stamped in the Turkish-run region, the southern Cypriot authorities may refuse your application.

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