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Worth Knowing When Buying a Property in Cyprus

BUYING A PROPERTY - ADDITIONAL COSTS

When buying a newly built apartment in Cyprus, there are additional costs beyond the purchase price.

Below is a breakdown of the potential additional costs:

Value Added Tax (VAT):

New properties are subject to VAT, typically at a rate of 19%.
However, a reduced VAT rate of 5% applies to main residences under certain conditions, including the buyer being an individual, the property being the buyer's primary residence (or a holiday home), and the property not being rented out.
The 5% rate applies to the first €350,000 of the property value, but if the property value exceeds €475,000, the full 19% is payable.
The 5% VAT rate applies to the first 130 square meters of the property's area. However, if the total area is larger than 190 square meters, the full amount is payable.

Stamp Duty:

Stamp duty is a mandatory government fee, typically ranging from 0.15% to 0.2% of the property value.

Transfer Fees:

Transfer fees are charged when the title deeds of a property are transferred and registered in your name at the Lands Registry Office.
These fees are calculated on a sliding scale ranging between 3% - 8% of the property value, depending on the kind of property.
If VAT is paid on the property, there are no transfer fees.

Legal Fees:

Legal fees typically range between 1% – 2% of the property price.

Utility Connection Fees:

You may need to pay fees to connect utilities like electricity, water and internet, which can range from €500 to €1,500 depending on the provider.

Communal Fees:

If you are buying an apartment or a property in a complex, you may have to pay maintenance fees for communal areas, lifts, insurance and security.

Municipal & Sewerage Taxes:

These taxes are typically €100 – €300 per year, depending on location.

CAN A FOREIGNER BUY A RESIDENTIAL PROPERTY IN CYPRUS?

Yes, foreigners can buy residential properties in Cyprus. However, there are some regulations depending on their nationality:

EU Citizens – Citizens of EU member states can purchase properties in Cyprus without restrictions.
Non-EU Citizens – Non-EU buyers must obtain permission from the Council of Ministers, but this is generally a formality.

The process typically includes signing a sales agreement, obtaining approval if required, and registering the property with the Land Registry.

Additionally, Cyprus offers a residency program for property investors, making it an attractive option for foreigners.

Cyprus Residency Programs

Cyprus offers two main residency programs for foreigners:

1. Cyprus Permanent Residency by Investment (Fast Track - Category 6.2)

This is the most popular program for non-EU investors.

Requirements:

Investment of at least €300,000 (excluding VAT) in a new residential property.
Proof of an annual income of at least €50,000 (plus €15,000 per spouse and €10,000 per child).
Visiting Cyprus once every two years to maintain the permit.

Benefits:

Fast processing – residency is granted within 2–3 months.
Covers entire family, including spouse, dependent children (under 25) and parents.
No renewal required – permanent residency is for life.
Path to citizenship – after 5–7 years, you may apply for Cypriot citizenship.
No requirement to live in Cyprus full-time.

2. Cyprus Temporary Residency (Pink Slip)

A visa for non-EU nationals who want to live in Cyprus without working.

Requirements:

Proof of steady income from abroad (minimum €24,000 per year plus €5,000 per dependent).
Rental or property ownership in Cyprus.
Private health insurance.

Benefits:

Renewable yearly.
Allows family members to stay.
No need to invest large amounts.

Limitations:

You cannot work in Cyprus, but remote work for a foreign company is allowed.
Must stay in Cyprus at least 183 days per year to maintain status.

ENSURING A SMART INVESTMENT

There are several important factors to consider to ensure a smart investment and a comfortable living experience:

1. Permits and Licenses

Verify building permits and licenses: always confirm that the construction is fully licensed and legally compliant.
Hire a local lawyer: a Cypriot real estate lawyer can conduct due diligence, review contracts and protect your interests.

2. Property Location

Accessibility: ensure good road links to Larnaca Centre, the airport, schools, and amenities.

3. Building Quality & Amenities

Construction materials and finish: look for energy-efficient materials, sound insulation and build standards.
Common areas: evaluate the shared spaces like hallways, lifts, parking and storage areas.
Parking and storage: confirm your dedicated parking spaces and storage.

4. Property Features

Size and layout: is the flat spacious enough and well laid out for your needs?
Outdoor space: balconies, verandas, or rooftop areas add lifestyle and investment value.
Storage: flats with private storage rooms or extra built-in wardrobes are a plus.

5. Monthly Costs & Taxes

Communal fees: ask about estimated monthly maintenance costs for shared facilities (lifts, cleaning, etc.).
Property taxes: while property taxes are low in Cyprus, it’s still worth verifying annual fees and municipal taxes.

6. Rental and Investment Potential

Short- and long-term rental appeal: choose an area that appeals to families and is also popular amongst expats, students and holiday makers.
Capital appreciation: choose areas that are showing solid growth.

7. Future Infrastructure Developments

Nearby projects: new roads, shopping centres, or schools can raise future property values.
Government or EU-funded upgrades: these may indicate a good long-term investment area.

8. Resale and Liquidity

Ease of resale: apartments that offer good layouts, parking, as well as good sized verandas and large roof gardens are easier to sell.

TERRA VIEWS – ECONOMIC RATIONAL

Aradippou and Livadia, both being adjacent to one another and suburbs of Larnaca, have experienced notable growth in their residential property markets, reflecting broader trends in the region.

Current Market Overview:

Larnaca has witnessed a significant surge in property demand, with a huge increase over a recent six-month period. This heightened interest is attributed to the area’s ongoing development projects and its emerging status as a desirable location for both living and investment.

Growth Predictions:

Real estate experts predict that property prices in Larnaca area will continue to rise, with some forecasts indicating potential double-digit growth in the coming years. This optimism is fuelled by infrastructure developments and increasing foreign investment.
The expansion of Larnaca International Airport and urban regeneration projects are enhancing the area’s appeal, potentially leading to further property value appreciation in surrounding suburbs like Aradippou and Livadia.

Investment Considerations:

Compared to central Larnaca, Aradippou and Livadia offer more affordable property options, making them attractive to a broader range of buyers.
Ongoing and planned developments in the Larnaca District suggest a positive trajectory for property values in these suburbs.
Proximity to amenities, beaches and transport links enhances the desirability of these areas for both residents and investors.

In summary, Terra Views development on the border of Aradippou and Livadia presents a promising opportunity in the Larnaca residential property market, with trends indicating continued growth and investment potential.

TERRA VIEWS LOCATION

Aradippou and Livadia are two thriving and well-regarded areas within the Larnaca District of Cyprus, each offering advantages for residents, investors, and visitors alike.

Terra Views development is on the border of the two.

Overview:

Aradippou and Livadia are located on the outskirts of Larnaca City.
They are known for their traditional charm, peaceful surroundings and modern development. They are a popular choice for families, professionals, investors and holiday makers.

Key Features:

Perfectly located a short drive away from Larnaca City Centre, the beach and Larnaca International Airport.
Amenities such as schools, supermarkets, shops, gyms and restaurants are plentiful in the area.
Family-friendly offering parks, playgrounds and quiet streets.
Nearby is the Livadia Linear Park - a scenic walking and cycling route that adds to the area’s lifestyle appeal.
Transport links - easy access to the Larnaca–Nicosia and Larnaca–Limassol highways.

Why consider this area?

Ideal for those seeking a quiet, suburban lifestyle with quick access to urban amenities.
Strong local infrastructure and services.
Stable long-term investment potential due to its continued growth and demand.
High rental demand, especially among expats as well as students, university staff and holiday makers.

Worth Knowing When Buying a Property in Cyprus

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