Crona property specialists will help you go through all the stages of real estate purchase. We will tell you in detail how you can make a transaction for the sale and purchase of a property on the island of Cyprus and will try to answer all your questions.
- In order to be sure that the object you have chosen will not be sold to others, the Buyer should pay a deposit, after which the object is removed from the sale and reserved for the buyer for 1 month.
- The buyer enters into an agreement to support the transaction with a Cypriot lawyer, after which he can safely leave home, while the lawyer will complete the transaction:
Check all documents;
Arranges tax exemption for housing (if any);
Prepare a contract and coordinate it with both parties.
- The lawyer will inform the buyer about all the details of the transaction, and with full agreement, the buyer must return, for the final signing of the sales contract and making the first payment. If you issue a general power of attorney for a lawyer, then he can complete all the stages on his own.
- Crona Property together with a lawyer makes all the necessary payments and when the agreement is deposited, the lawyer prepares an application for VAT benefits and an application for permission from the Council of Ministers of the Republic of Cyprus to purchase real estate.
- After obtaining all permits and approval of benefits (if any), the buyer pays the remaining amount and receives the keys to his new property.
- After checking all the documents, the Land Committee issues a Certificate of Ownership to the new owner.
Depending on the conditions and wishes of the buyer, the points of the transaction may differ if:
Real estate purchase is carried out on credit;
Buying a property under construction.
VAT on the purchase of real estate in Cyprus. Cyprus property taxation.
When buying a new Cypriot property, you must pay VAT. The VAT rate in the Republic of Cyprus is 19%. From 18 November 2016, a reduced rate of 5% is applied on the first 200 m2 of living space according to the architectural plan approved by the authorities of the Republic of Cyprus.
You can also get a reduced VAT rate if you meet the following criteria:
The buyer must be an individual (not a legal entity),
have reached the age of 18.
The property being bought should be the main place to live
applicant in Cyprus.
The applicant must not own real estate previously acquired by
preferential VAT rate.
This property will be used exclusively for
the applicant’s residence, and not for the purpose of generating income (for example, from renting out).
A buyer claiming a benefit must submit to the department
VAT application for the application of VAT exemption. Together with the application is submitted
declaration that he has not previously acquired other property in Cyprus at a reduced VAT rate.
If the applicant is married, the spouse will also
must submit a similar application and declaration.