Introduction
Buying property abroad always involves extra layers of complexity. This article walks through the key legal, tax and practical steps you need to know when buying in Cyprus — whether you’re an EU-citizen or non-EU.
1. Who can buy & what restrictions apply
EU citizens face fewer restrictions. Non-EU citizens must obtain approval from the relevant authorities.
Foreign buyer regulations: Buying more than two properties may require special permission for non-EU citizens.
2. Purchase process (typical steps)
Select property, reserve it, sign a contract, maybe pay deposit.
If required, apply for foreign-buyer permit or approval.
Transfer of title deed, registration at the Land Registry. Engage local legal counsel.
Pay taxes, fees and ensure all utilities/communal charges are appropriately handled.
3. Costs, tax & fees
The average price per m² ~ €2,700 (approx) for many markets in Cyprus.
Tax regime: there are purchase taxes (transfer tax), possibly VAT (for new builds), capital gains tax on disposal, etc.
Due diligence costs: legal fees, conveyancing, search for encumbrances, planning status, building permit compliance. The importance of this cannot be overstated, especially in foreign markets.
4. Financing & non-resident considerations
If you’re a non-resident investor you may find mortgage terms more restrictive: lower LTV, higher interest rates. Cyprus is not necessarily as aggressively leveraged as other high-risk markets.
Currency risk, interest rate risk, rental vacany risk all need factoring in.
5. Tax-residency, rental use & exit strategy
If you plan to rent the property (holiday or long-term), register correctly, comply with local tax obligations and be aware of tourism/short-let regulation.
Exit strategy is important: if you intend to sell in 5-10 years, choose location, build quality, developer reputation and view-on-resale carefully.
Tax on capital gain: you will likely pay on the difference in value when you sell. Ensure you budget for this.
Conclusion
Buying in Cyprus can be straightforward — but only if you do the right preparation. For investors/second-home buyers who treat it as a serious transaction (not a speculative impulse buy), the regulatory and legal landscape is favourable. Work with local experts and budget realistically.
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