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As you would expect, there are costs associated with a property purchase in Cyprus, which will need to be factored into your budget.
1. Legal fees
When purchasing a property it is highly recommended that you use a property lawyer, who will generally charge you CYP 1,000 for a standard purchase, however this will depend on the complexity of the purchase, and the level of work required. When purchasing off-plan it is rare that the legal fees will exceed this value.
As part of the service your lawyer will check the property with the Lands Office, will check the building permits and planning permission, will check that the land is appropriate for the building and there are no infractions on the licence, and will draw up the necessary contracts, will register the property and will gain authorisation from the Council Of Ministers.
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Should you wish to arrange a purchase without the use of a lawyer, it is possible to apply to the Council of Ministers privately, which will cost approximately CYP 300.
2. Surveyors fees
If you wish to have a survey completed, which is recommended on all resale purchases, this can be arranged for approximately CYP 300, however this will depend to a certain degree on the value of the property, and the level of detail that you wish. This is not a requirement with a purchase.
3. Mortgage arrangement fee
You can expect to pay a fee to the lending organisation of 0.75% to 1% of the loan value.
4. Stamp Duty
Stamp duty is calculated on a two tier basis, with you liable to pay 1.5% for the first CYP 100,000 of the property price, and 0.2% thereafter.
5. Transfer Fee
On completion and handover you will be required to pay transfer tax. This is due when your lawyer registers the property with the Lands Office. The fee will depend on the value of the property together with whether or not there is one, or more people on the title deeds. This is calculated as follows.
First CYP 50,000 at 3%
CYP 50,000 to CYP 100,000 at 5%
CYP 100,000+ at 8%
If you are purchasing in joint names, the fees are calculated between the two purchasers and are assessed separately. It is assumed that each purchaser will be paying half. Therefore on a property of CYP 100,000 the purchasers would both be paying CYP 50,000 and would each have to pay 3%, which is 6% in total.
For a property of CYP 150,000, the costs would be as follows:
CYP 75,000 for each of the two purchasers therefore, CYP50,000 at 3%, and CYP 25,000 at 5%, a total of CYP 1500 plus CYP 1250 per person. In total CYP 5500
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