With its sunny climate, relaxed lifestyle and interesting culture, it’s easy to see why so many expats choose to move to Cyprus, and with that comes buying property.
If you plan to make Cyprus your permanent home, you’ll need to familiarise yourself with the process of finding a property, the property market and securing your dream home.
The Process of Buying a Property in Cyprus
Selling your home in the UK is only part of the process of relocating to Cyprus, as you’ll then need to find somewhere to live. The process of buying property in Cyprus is relatively straightforward, but it does differ from the property buying process in the UK.
Once you’ve found your desired property in Cyprus, you’ll typically pay a reservation fee to secure it. A legal advisor will then guide you through the due diligence, which includes ensuring the title deeds are clear of debt and that the property complies with planning permissions. You’ll need to sign a sales agreement, which is deposited with the Land Registry, protecting you from the property being sold to someone else during the transaction period.
After you’ve paid the deposit, you’ll finalise the purchase by transferring the remaining balance and registering the property under your name.
Finding a Property to Buy in Cyprus
If you want to find your dream home in Cyprus, you need to know how to approach searching for it. In Cyprus, local estate agents play a central role in property searches, offering personalised guidance and insight into specific areas, which can be particularly helpful for expats unfamiliar with the market. Unlike in the UK, where online portals like Rightmove and Zoopla dominate property searches, Cyprus relies more heavily on in-person viewings and word-of-mouth recommendations, especially for properties in smaller towns or rural areas.
Another difference is the availability of new developments and off-plan properties in Cyprus, which are more common than in the UK. These are often targeted at international buyers. Both the UK and Cyprus require diligence and legal checks throughout the property buying process, but working with an independent lawyer in Cyprus is especially important, especially when it comes to navigating title deed regulations and ensuring a secure purchase.
How Does Buying a Property in Cyprus Differ From the UK?
There are a few differences in how you buy a property in Cyprus, compared to the UK, and one major difference is the role of title deeds. Some properties in Cyprus, especially new builds, may not have title deeds readily available and this can delay the process. It’s essential to verify this upfront, especially if you’re hoping to buy a property relatively quickly and without delays. But, one benefit of buying property in Cyprus is that the property taxes are lower than in the UK, which tends to make home ownership more affordable.
If you are moving to Cyprus from the UK and are not a resident, you’ll need permission before buying a property. Foreign buyers need to obtain permission from the Council of Ministers to purchase a home in Cyprus, but this tends to be more of a formality, and it’s unlikely that you’ll run into any problems. Permanent residents of Cyprus have more freedom in property ownership, including the ability to buy land and larger properties, which expats don’t have.
Rules for Foreign Property Ownership vs. Permanent Resident
Some countries, like New Zealand, have very strict rules about foreign property ownership, but Cyprus is slightly more relaxed. As a non-resident, you are generally allowed to purchase one property, such as an apartment, a house or a plot of land for residential use. So, though you can’t move to Cyprus and immediately build a property empire, buying a residential home shouldn’t be difficult. Permanent residents in Cyprus can own multiple properties without these restrictions.
What to Expect From The Property Market in Cyprus
Market Trends
The property market in Cyprus has been growing steadily in recent years, with strong demand from international buyers, especially in cities like Limassol, Paphos and Nicosia. New developments cater to expats, offering modern amenities and attractive investment opportunities.
Regional Variations
Where you choose to buy in Cyprus will depend on your lifestyle. Paphos is popular for retirees and those seeking a quieter life, while Limassol is a vibrant city with a mix of traditional charm and cosmopolitan flair. Nicosia, the capital, appeals to those who want to live and work in a bustling urban centre. Coastal towns like Larnaca offer stunning seaside properties. When you are browsing the property market in Cyprus, consider what different regions have to offer.
Affordability
Cyprus offers excellent value for money in the property market compared to the UK, making it an appealing destination for expats. Property prices in Cyprus are generally lower than in many parts of the UK, allowing buyers to get more for their money. The cost of property varies significantly by region, with areas like Paphos and Larnaca providing more affordable options compared to the bustling and cosmopolitan city of Limassol, which tends to command higher prices due to its prime location and business hub status.
Interest Rates and Mortgages
Cyprus offers competitive mortgage rates, making it an attractive option for expats looking to spread the cost of their investment. However, the terms for non-residents differ from those for locals. Non-residents are expected to provide a significant deposit when buying a property, usually around 30% of the property’s value, which is higher than what’s generally accepted in the UK. This higher deposit requirement reflects the additional risks lenders perceive when financing buyers without permanent ties to Cyprus.
Research and Prepare Before Buying a Property in Cyprus
Before buying a property in Cyprus, it’s a good idea to research the market and the area you’re considering. Enlist the help of a local estate agent who understands the needs of expats and can provide insights into different neighbourhoods. It’s also a good idea to find time to visit Cyprus and explore different properties in person, as photos and online listings are helpful, but they don’t always convey the true feel of the place. Once you’ve organised where you’ll live, it’s time to organise getting there.
When it comes to moving your belongings from the UK to Cyprus, we’re here to help. As experts in international removals, with a lot of experience helping those moving to Cyprus, we have the skill, expertise and experience needed to ensure a smooth process. Get in touch to find out more.