Introduction:

Cyprus, with its picturesque landscapes, favorable climate, and strategic location, continues to attract investors and individuals looking to purchase property for residential, commercial, or investment purposes. However, the process of buying or selling Real Estate in Cyprus involves various legal intricacies that necessitate expert guidance to ensure a seamless transaction.

At Yiorkas Law, we specialize in providing comprehensive legal support tailored to meet the unique needs of our clients navigating the Real Estate in Cyprus market.

Understanding the Legal Landscape for Real Estate in Cyprus:

Real Estate in Cyprus operates under a legal system that combines elements of English common law and civil law, providing a solid legal framework for real estate transactions.

There 2 main Laws governing the Real Estate Properties as well as Transactions in Cyprus:

1. The Immovable Property (Possession, Registration and Valuation) Law (CHAP. 224);
2. The Sale of Real Estate (Special Execution) Law of 2011 (81(I)/2011).

Nevertheless, nuances within this framework, such as regulations governing property ownership, land use, and taxation, require a thorough understanding to navigate successfully.

Our Team of legal experts possesses extensive knowledge of Cyprus Real Estate law, allowing us to offer informed guidance and strategic solutions to our clients.

What are the 10 Tip-Steps Guidance:

We break down for you how a Real Estate in Cyprus Transaction is carried out in 10 Simple Tip-Steps, who concerns each Step and their Importance:

1. Compliance Checks on the Buyer’s Source of Funds:

   Prior the signing of the below Contract of Sale, it is of essence for the Seller to request the correct supporting documentation from the Buyer, concerning the Source of Funds which shall be used for the Real Estate in Cyprus transactions. In this way, we preliminarily confirm with the Seller’s bank that the Buyer’s funds to be used will be accepted, therefore saving time and avoid carrying all the following steps and then cancelling the transaction for paying inability by the Buyer.

2. Contact of Sale:

We start with the most important element which is the Drafting and Preparation of a solid CoS. It is important for any person to understand that a solid CoS increases or even guarantees the execution and finalization of a Real Estate in Cyprus Transaction. A comprehensive CoS should always cover, not only the basic elements of a transaction such as the selling price and schedule of payments, however mainly what happens in any possible scenario where a violation has been occurred from either the Buyer of the Seller. In this way, both Parties have the possibility to solve any matters that might arise outside court proceedings and avoiding increasing their expenses in such cases to be resolved.

3. Tax Stamp Duties:

   Upon executing a solid CoS, the Purchaser shall bear in mind that the CoS shall be stamped at the competent Tax Department in order to validate its signing and execution. Note that the Purchaser shall within 1 month from the signing date, proceed with the Tax Stamp Duties or otherwise a penalty fee will be applied for each day of delaying the stamp duties following the 1 month period.

4. Land Registry Deposition:

   Another important element of a Real Estate in Cyprus Transaction is the Deposition of the CoS at the competent Land Registry. Again, this is very important for any Buyer to understand that upon depositing the said CoS with the Land Registry, his legal rights of ownership are secured. Note that no CoS can be deposited unless is stamped as per above Tip No. 2 and shall do so within 6 months for the signing date, or otherwise a Court Order will thereafter be required.

5. Tax Clearance Certificate:

   Provided that all of the above 3 Tips have been finalized, it is now the obligation of the Seller to obtain his Tax Clearance Certificate in order to be able to finalize the transaction. The Seller is obliged to file the relevant application with the Tax Authorities where he is required to pay the taxes applicable, being 20% on the profit of the transaction, known as the ‘Capital Gains Tax’ (“CGT”). Once the CGT is paid by the Seller, then the Tax Clearance Certificate is issued by the Tax Authorities.

6. Utilities Confirmation:

   In addition to the Tax Clearance Certificate, the Seller in order to be able to transfer the subject property, he must make sure that the utilities such as the Water Board, Municipality and Sewage Bills are paid up to date and relevant confirmations have been given by the competent departments.

7. Acquisition Permit – Applicable only to Third-Country Nationals:

   Under the laws of Cyprus, any Third-Country National is allowed to have only up to 2 Properties on his name, and if married, up to 2 Properties together with the spouse. For that reason, every Third-Country National buying a Real Estate in Cyprus, is obliged to apply and obtain from the competent District Office its Acquisition Permit, prior transferring the Title Deed of the Property on his/her name.

Important Note: Third-Country Nationals wishing to establish a portfolio of Properties in Cyprus with more than 2 Properties, this can easily be achieved by a Cyprus Company Incorporation – Read More Here!

8. 5% VAT Reduced Rate – Applicable only to New Properties:

   Where the Real Estate in Cyprus transaction is the first ever for the Buyer, then he is eligible to apply for the Reduced VAT Rate of 5% instead of 19%. This application shall be submitted, provided that the above 1-3 Steps have been completed. All applicants shall be registered with the Tax Authorities as well and obtain a TIC No. to enjoy the Reduced VAT Rate benefit.

9. Land Registry Appointment:

   Coming to the final stage and provided that all of the aforementioned Tips-Steps have been completed, the Parties now shall schedule an appointment with the competent Land Registry, in order to transfer the Title Deed.

10. Appointment of an Experienced Law Firm:

    Where all the aforementioned Tip-Steps come down to the one Key-Factor, appointing an Experienced Law Firm to handle, monitor and supervise each Real Estate Transaction in Cyprus, is of essence for its Success.

Key Considerations for Buyers:

For individuals or entities looking to purchase property in Cyprus, several critical considerations must be addressed:

A) Title Deeds and Ownership: Verifying the validity of title deeds and ensuring clear ownership of the property is essential to avoid future disputes. Our Team conducts comprehensive due diligence to confirm the legal status of the property and identify any potential issues.

B) Legal Documentation: Drafting and reviewing legal documentation, including purchase agreements, contracts of sale, and transfer deeds, is a crucial aspect of the buying process. We ensure that all documents comply with relevant laws and protect the interests of our clients.

C) Tax Planning: Understanding the tax implications associated with the Real Estate in Cyprus, such as transfer fees, stamp duty, and capital gains tax, is vital for effective tax planning.

D) Financing Options: Exploring financing options and securing mortgage loans for Real Estate in Cyprus acquisitions requires careful consideration. Our Team assists clients in navigating the complexities of mortgage agreements and financing arrangements to facilitate successful transactions.

Assisting Sellers:

For property owners looking to sell their assets in Cyprus, our firm offers comprehensive support throughout the selling process:

A) Market Analysis and Pricing: Conducting thorough market analysis and determining the optimal pricing strategy is essential for maximizing the value of the property. Our experts provide strategic advice on pricing, valuation and positioning to attract potential buyers.

B) Negotiation and Closing: Handling negotiations with potential buyers and facilitating the closing process requires meticulous attention to detail. Our team ensures that all contractual obligations are met, and the transaction is completed smoothly and efficiently.

C) Compliance and Legal Documentation: Ensuring compliance with legal requirements and preparing accurate documentation is paramount in real estate transactions. We assist sellers in preparing all necessary documents and fulfilling regulatory obligations to ensure a legally sound transaction.

Benefits of Real Estate in Cyprus:

Investing in Real Estate in Cyprus offers a myriad of benefits that appeal to both domestic and international investors.

As a premier destination for property investment, Cyprus boasts a combination of economic stability, favorable tax incentives, and a high quality of life, making it an attractive option for individuals seeking to capitalize on the real estate market.

At Yiorkas Law, we recognize the numerous advantages of investing in Real Estate in Cyprus and are dedicated to helping our clients maximize their opportunities in this thriving market.

1. Cyprus Permanent Residency by Investment

Cyprus, the enchanting island in the Eastern Mediterranean, has become an increasingly popular destination for those seeking a new home and a fresh start. Among the various immigration routes available, Regulation 6.2 offers a pathway to Cyprus Permanent Residency by Investment for individuals looking to make Cyprus their long-term residence – Read More Here!

2. Stable and Growing Economy

Cyprus has established itself as a robust and resilient economy, with steady growth across various sectors. The country’s strategic location at the crossroads of Europe, Asia, and Africa positions it as a hub for international trade and commerce. Additionally, Cyprus offers a business-friendly environment, with low corporate tax rates and a well-developed legal and regulatory framework that promotes investment and entrepreneurship.

3. Strategic Location and Connectivity

Situated in the Eastern Mediterranean, Cyprus enjoys excellent connectivity to major cities and markets worldwide. The island is served by modern infrastructure, including an extensive network of highways, ports, and airports, facilitating seamless travel and transportation of goods. With direct flights to major European cities and beyond, Cyprus serves as an accessible gateway for business and leisure travelers alike, enhancing the appeal of its real estate market to both investors and tourists.

4. Attractive Tax Incentives

Cyprus offers a range of tax incentives and benefits to real estate investors, making it an attractive destination for Real Estate in Cyprus Investment. Notably, the country’s tax regime includes provisions for favorable capital gains tax rates, inheritance tax exemptions, and residency programs for non-EU investors. These incentives, coupled with Cyprus’ status as a member of the European Union, create a conducive environment for wealth preservation and asset accumulation through real estate investment – Read More Here!

5. High Quality of Life

One of the most compelling reasons to invest in Real Estate in Cyprus is the exceptional quality of life it offers. With its stunning natural landscapes, pristine beaches, and Mediterranean climate, Cyprus is renowned for its unparalleled lifestyle amenities and recreational opportunities. From vibrant urban centers to quaint coastal villages, the island caters to diverse preferences and lifestyles, making it an ideal destination for residential and holiday home investment.

6. Diverse Investment Opportunities

Whether you’re interested in residential properties, commercial developments, or leisure resorts, Cyprus offers a diverse range of investment opportunities to suit every investor’s objectives. From luxury waterfront villas to modern office buildings and hospitality projects, the real estate market in Cyprus presents an array of options for portfolio diversification and wealth accumulation. With a growing demand for high-quality properties from both local and international buyers, investing in Cyprus real estate offers the potential for attractive returns and long-term appreciation – Read More Here for Investment Funds!

Why Choose Yiorkas Law?

At Yiorkas Law, we are committed to providing our clients with exceptional legal services and personalized attention to address their specific needs and objectives.

Our Team combines legal expertise with in-depth knowledge of the Cyprus real estate market, enabling us to deliver superior results and exceed our clients’ expectations.

With a reputation for professionalism, integrity, and excellence, we are the preferred choice for individuals and businesses seeking legal support in real estate transactions in Cyprus.

Get in Touch:

If you are considering buying or selling real estate in Cyprus, Yiorkas Law is here to assist you every step of the way.

Contact us today to schedule a consultation with one of our experienced real estate attorneys and discover how we can help you achieve your goals with confidence and peace of mind.