Real estate has always been considered one of the most stable forms of investment and capital protection. Among the countries where people buy the most real estate, considering the recreational appeal of tourists, it is worth choosing the Republic of Cyprus.
Cyprus is coming out of the pandemic thanks to the big investments that are being made here to make Cyprus a more comfortable place to live. Cyprus is embarking on exciting modernizations and renovations that will be of great interest to anyone planning to live here and considering a new apartment for sale in Zakaki, Cyprus.
Important features of buying real estate in Cyprus
Citizens of Cyprus and citizens of the EU have the right to buy real estate in the territory of the Republic of Cyprus without any restrictions. In the case of non-EU citizens, they are only allowed to buy a home under certain restrictions set by law. In particular, the procedure for acquiring property rights by foreigners (who are not EU citizens) is regulated by the Law on Acquisition of Property Rights by Foreigners.
According to the provisions of the above-mentioned law, a foreigner can own an apartment, a house, or a plot of land with a total area of up to 4,014 square meters. According to the legislation of the Republic of Cyprus, the acquisition of real estate, the purchase of real estate, and the long-term lease of real estate are considered to be the purchase of shares of the company that owns the real estate. If, as a result of such an acquisition, the company comes under foreign control, a trust is created to hold the property for the benefit of foreigners.
In the first stage, the potential buyer selects real estate, opens an account in one of the Cypriot banks to pay for the real estate, and concludes a legal contract for the sale of real estate with the seller. The order of settlements between the parties is clearly defined by the current legislation.
In some cases, it is also possible to enter into a sale and purchase agreement for the shares of the company that owns the property to purchase the property or a lease agreement for 33 years or more under certain clearly defined terms that are described in the legal agreement.
After signing the contract, the buyer must obtain legal approval to complete the property purchase process. For this, the buyer submits a relevant application and other necessary documents. He provides full information about himself, including a copy of his passport, proof of solvency, information about the property, whether it is rented out, who lives there, etc. This is how he gets ownership (buys) this property.
A copy of the sales contract indicating the method of payment, and information about the owner of the property is also included in the list of necessary documents for the successful signing of all documents related to the purchase of real estate in Cyprus.
The time required to verify documents and issue permits is usually 8-10 months. In addition, the buyer must pay the stamp duty within 30 days after signing the legal contract for the purchase of the real estate. Thus, the purchase of real estate is legalized in the Department of Internal Revenue.
The contract will be certified by a stamp confirming the payment of the stamp duty. The absence of a seal on the contract does not make the contract invalid, but the stamp duty must be paid before submitting the documents to the land registry.
Otherwise, you will have to pay stamp duty and interest on the overdue debt when you transfer the contract to the title deed or other government authority. The Stamp Duty Act of the Republic of Cyprus levies a stamp duty of 0.15% on buildings valued up to €170,860.14 and a stamp duty of 0.2% if the value exceeds this amount. The buyer is exempt from stamp duty if the value of the property does not exceed €5,000.00.
The buyer is also obliged to submit to the land cadastre a certified copy of the contract of sale, which is protected by the legislation of the Republic of Cyprus on legal practice. Following the provisions of the above-mentioned law, the buyer must submit a certified copy of the contract to the regional cadastral office within two months from the moment of signing the contract.
Registration of the contract in the land cadastral service ensures the buyer’s ownership until the moment of receipt of documents confirming ownership of the property and protects the property from the resale, lease, or mortgage to its owner. Following the legislation of the Republic of Cyprus, the buyer pays for the transfer of ownership of the building and the costs of real estate registration.
The long-awaited reconstruction of the port and marina of Larnaca will cost 1.2 billion euros. Site preparation for the renovation has already been completed and handed over to the contractor, the construction is Cyprus’ largest investment in infrastructure to date, bringing €120 million per year to the Cypriot economy.
The first phase of the renovation includes modernizing services for boat owners, such as smartphone booking. The existing marina in Larnaca will be completely converted to accommodate 650 yachts and will be supplemented with its facilities for yacht repair work.
Yachts up to 150 meters long can be moored here. The new Marina yacht club will have offices, restaurants, cafes, places for various business meetings and weddings, a sailing school, and a diving school. The Port of Larnaca accommodates vessels up to 450 meters in length, including luxury cruise ships, warships, and merchant vessels.
The implementation of the project covers four stages. Even if you don’t have a yacht, Larnaca New Marina is a great place to take a stroll, drink a cup of coffee, and look out over the harbor, all these things immediately bring to mind buy properties in Cyprus. Property prices in the new marinas and ports can be high, but you can find a two-bedroom apartment in Larnaca for around €130,000. A 3-bedroom house/villa without a pool will cost approximately €240,000 and will be located three minutes from the beach and ten minutes from Larnaca Airport.
Opportunities of New Nicosia
The good news in Nicosia: the government has allocated suburban areas for reconstruction, including financial investments in various facilities from large investors. Nicosia’s old town is full of cafes, restaurants, and other impressive ways to spend your free time.
The construction of a new school of architecture is planned, which should attract educated youth to the city. A new railway network will connect the suburbs and surrounding villages to the center of Nicosia, and a new motorway will connect Nicosia and the suburbs to the coast, which is only 40 kilometers away. If you choose to live in the Tseri or Lakatamia areas, you can quickly reach the center of Nicosia.
It is also worth mentioning the “Mediterranean city of dreams” Limassol. The largest casino in Europe is located here. Another development for those who want to live in the Troodos hilltop villages and other rural villages is the government’s housing plan, which includes €15 million for the so-called revitalization of the mountain and disadvantaged areas and countryside.
The plan envisages the improvement of road infrastructure, encouraging entrepreneurship to open a business in the field of rural tourism. As you can see, very interesting and exciting events are happening here in Cyprus. I am particularly pleased that the government of Cyprus has finally recognized the need for the reconstruction of the mountain and rural areas. Because these areas are very beautiful in terms of landscape and endemic flora and fauna of Cyprus.
Attractive investment opportunities in Cyprus
Buying real estate in Cyprus is attractive because it is a charming country worthy of being called the “Pearl of the Mediterranean”. From pine-clad mountain peaks to golden beaches with crystal clear waters, Cyprus offers awe-inspiring natural beauty. Many tourists fall in love with the unique atmosphere and style of the island, enjoying the rich and varied history, landscapes, rich culture, peaceful lifestyle, beautiful weather, and extremely hospitable people.
Due to the moderate climate, air conditioning is most often used for heating in winter. Recently, however, construction companies have started installing underfloor heating to make their homes more comfortable. Buying an apartment, villa, or land in Northern Cyprus has many key advantages.
Real estate values are increasing dramatically every day due to the popular location. In addition, Cyprus is an island nation, so available land plots are limited. Climate: Cyprus has 320 sunny days a year. This means that the bathing season is very long and there are small fluctuations in weather conditions throughout the year. Nature: the island has a variety of landscapes (mountains, seas, forests) that are beneficial for human health. Cost-effectiveness: real estate in Cyprus is cheaper than in Europe.
The real estate market meets all requirements and any budget. You can buy large houses along the coast and even find cheap apartments that you won’t find in other European countries. Investment growth: Property prices in Cyprus are growing by 10% per year in key investment areas. Prices are very stable.
This contrasts with falling property prices in other parts of Europe. The reason property prices in Cyprus are so stable is that they have been created by private capital, not by borrowing from the international financial system. Low property taxes: Property taxes in Cyprus are very low, making real estate investment even more profitable.
The key benefits of buying a home in Cyprus are a thriving tourism industry, low crime, a high standard of living, friendly residents, good food, excellent transport, a low cost of living, and more. Real estate prices are determined by various criteria, the most important of which are the degree of development, location, type of property, and proximity to the sea.