BUYING REAL ESTATE IN CYPRUS.
Acquisition Stages
We are dedicated to guiding you through every step of your real estate purchase journey. We offer comprehensive assistance in navigating the intricacies of buying property on the island of Cyprus. Our team will provide detailed guidance on executing transactions for property sale and purchase, addressing all your inquiries along the way.
Foundations
Reserving the Property is one of the main factors that secure your Real Estate in Cyprus acquisition. The Purchaser shall pay a deposit which means that the Property is out of market for sale, for at least 3 weeks.
Our Trusted Legal Partners, A. Yiorkas & Co LLC come into play, where the Purchaser, upon signing an Engagement Letter with the law firm, appoints the lawyers to carry out the following:
- Due Diligence Report of the Property;
- Drafting and Preparation of the Contarct of Sale;
- Preparing and Submission of Acquisition Permit Application (if applicable);
- Prepare and Submit any VAT Reduced Rate Applications (if applicable);
- In general, to Supervise and Monitor the whole Transaction.
Note: By providing the Law Firm with a Power of Attorney, they can carry out the whole process on your behalf remotely.
Applicable Tax
VAT Rate on Real Estate in Cyprus
When purchasing a new property in Cyprus, VAT is required, set at a standard rate of 19%. Nevertheless, there are provisions for a reduced VAT rate. As of November 18, 2016, a 5% VAT rate is applicable to the initial 200 square meters of living space, as per approved architectural plans.
BAck in June 2023, the Cabinet of Ministers altered legislation regarding the Reduced VAT Rate. Under the new law, a 5% VAT rate applies to the first €350,000 of property value, with a total property value cap of €475,000. This VAT Reduced Rate also extends to the initial 130 square meters of property, up to a maximum area of 190 square meters.
To qualify for the Reduced VAT Rate, certain criteria must be met:
- Adult Purchaser (18 years and older)
- Property to be used as Private Residence
- First Time Applying for the Reducted VAT Rate
Get in touch.
We can help you bring your ideas to life. Let’s talk about what you can achieve by purchasing a property from us.
