Can Foreigners Purchase Property in Cyprus?

Modern coastal villa in Cyprus with sea view

Table of Contents

Cyprus, a Mediterranean paradise known for its stunning landscapes, historic sites, and vibrant culture, is increasingly becoming a hotspot for property investment. But can foreigners purchase property in Cyprus? The short answer is yes. However, there are specific regulations and procedures that international buyers must be aware of before diving into the Cypriot real estate market.

Aerial view of a marina and coastal town in Cyprus

What Are the Legal Requirements for Foreigners to Purchase Property in Cyprus?

Foreigners, particularly non-EU citizens, can purchase property in Cyprus, but there are certain legal requirements and restrictions. Firstly, non-EU citizens must obtain permission from the Council of Ministers. This permission is relatively straightforward to obtain and is typically granted unless the property in question is of strategic importance.

The application process involves submitting various documents, including a copy of the property sale agreement, personal identification documents, and details of the intended property use. It’s essential to engage a local lawyer to navigate these legal waters effectively and ensure that all paperwork is correctly filed.

Are There Restrictions on the Type of Property Foreigners Can Buy?

Yes, there are some restrictions on the type of property that foreigners can buy in Cyprus. Non-EU citizens are generally limited to purchasing one property, and this property can be:

  • A house or an apartment
  • A plot of land not exceeding 4,014 square meters
  • A commercial property, such as a shop or office space


Additionally, the property must be used for residential purposes, and foreigners are usually not allowed to buy agricultural land. However, EU citizens residing in Cyprus have the same rights as Cypriot citizens and can purchase multiple properties without restrictions.

What Are the Costs Involved in Purchasing Property in Cyprus?

When purchasing property in Cyprus, buyers should be aware of the associated costs beyond the property price itself. These costs include:

  1. Stamp Duty: This is a tax levied on the purchase agreement, which varies based on the property’s value. For properties up to €5,000, the rate is 0.15%, and for properties over €5,000, it is 0.20%.
  2. Transfer Fees: These are paid to the Department of Lands and Surveys to transfer the property title to the buyer’s name. The fee rate varies depending on the property’s value and whether the property is being purchased by one person or jointly.
  3. VAT: For new properties, a 19% VAT may apply, although a reduced rate of 5% is available for first-time buyers under certain conditions.
  4. Legal Fees: Engaging a local lawyer to handle the purchase process is crucial, and their fees usually range from 1% to 2% of the property’s value.


Property Inspection Fees: It is advisable to have the property inspected by a professional to ensure there are no hidden issues, which can add to the overall cost.

Cozy living room with sea view in Cyprus

How Can Foreigners Finance Property Purchases in Cyprus?

Foreigners looking to purchase property in Cyprus can finance their purchase through various means. Many international buyers opt for a mortgage from a Cypriot bank. The banks offer attractive mortgage options, often up to 70% of the property’s value, with repayment periods typically ranging from 15 to 30 years.

To secure a mortgage, buyers must provide proof of income, a good credit history, and often a deposit of at least 30% of the property’s value. Interest rates can vary, so it is advisable to shop around and consult with financial advisors to find the best mortgage deal.

Alternatively, some buyers prefer to finance their purchase through personal savings or international loans. Regardless of the financing method, it is essential to have a clear understanding of all terms and conditions before committing.

What Is the Process of Purchasing Property in Cyprus?

The process of purchasing property in Cyprus typically involves the following steps:

  1. Property Search: Engage a reputable real estate agent to help find a suitable property that meets your needs and budget.
  2. Offer and Deposit: Once you find a property, you will make an offer. If accepted, you will pay a reservation deposit to take the property off the market.
  3. Legal Checks: Your lawyer will conduct due diligence, including title searches and checking for any encumbrances on the property.
  4. Sale Agreement: A sale agreement is drafted, outlining the terms of the sale. Both parties sign this agreement, and a copy is submitted to the District Lands Office.
  5. Council of Ministers’ Permission: For non-EU citizens, the lawyer will apply for the necessary permission to purchase the property.


Final Payment and Transfer: Once all approvals are obtained and the final payment is made, the property title is transferred to the buyer’s name at the Land Registry Office.

Scenic coastal rock formation and clear blue waters in Cyprus

What Are the Benefits of Purchasing Property in Cyprus?

Purchasing property in Cyprus offers numerous benefits, making it an attractive option for foreigners. These include:

  • Mediterranean Lifestyle: Cyprus offers a high quality of life with its beautiful climate, stunning beaches, and rich cultural heritage.
  • Favorable Tax Regime: Cyprus has one of the most attractive tax systems in Europe, with no inheritance tax and low property taxes.
  • Residency Opportunities: Non-EU citizens who purchase property worth at least €300,000 may be eligible for a permanent residency permit, providing easy access to travel within the EU.


Investment Potential: The Cypriot real estate market has shown steady growth, offering good potential for capital appreciation and rental income.

In Conclusion

In summary, foreigners can purchase property in Cyprus, but they must navigate specific legal requirements and be aware of associated costs. Consult with our professionals at DSG Real Estates to learn more about how to purchase property in Cyprus. With proper guidance and due diligence, buying property in Cyprus can be a seamless process offering numerous benefits. Whether for a vacation home, investment, or permanent residence, Cyprus remains a highly attractive destination for international property buyers.

Happy new homeowner holding keys

Step 1: Define Your Objectives

  • Determine the purpose of the purchase (holiday home, investment, permanent residence).
  • Set a budget considering additional costs (taxes, legal fees, etc.).

Step 2: Research and Choose a Location

  • Research different areas in Cyprus to find one that matches your lifestyle or investment criteria.
  • Consider factors like climate, accessibility, amenities, and potential for appreciation.

Step 3: Engage with Real Estate Professionals

  • Contact a reputable real estate agency with experience in the Cypriot market.
  • Consider hiring a property lawyer who is fluent in your language and familiar with Cypriot property law.

Step 4: Property Hunting

  • Create a list of must-have features for your ideal property.
  • Schedule viewings and visit multiple properties to compare.

Step 5: Due Diligence

  • Conduct a comprehensive check on the property’s legal status to ensure there are no encumbrances or liens.
  • Verify the property’s title deeds and ensure they are available and transferable.
  • Hire a surveyor to check the property’s condition, especially if buying a resale property.

Step 6: Financing Your Purchase

  • Explore financing options if necessary (mortgage in your home country vs. a Cypriot bank).
  • Obtain a mortgage pre-approval if you plan to finance the purchase through a loan.

Step 7: Make an Offer and Negotiate

  • Submit an offer through your real estate agent.
  • Be prepared to negotiate on price, fixtures, fittings, and the completion date.

Step 8: Legal and Contractual Process

  • Once your offer is accepted, instruct your lawyer to draft or review the sale agreement.
  • Sign the sale agreement and pay the deposit to secure the property.
  • Ensure your lawyer conducts all necessary checks and obtains the necessary permits if you are a non-EU buyer.

Step 9: Completion

  •  Finalize mortgage arrangements and transfer the remaining funds.
  • Sign the final contract in the presence of your lawyer.
  • Pay the property transfer fees, stamp duty, and any other taxes.

Step 10: After Sale

  • Register the property in your name at the Land Registry Office.
  • Change utility bills and other services into your name.
  • If applicable, apply for residency or other permits required for non-Cypriots.

Additional Tips:

  • Keep all documents related to your property purchase well-organized and easily accessible.

  • Stay informed about the ongoing tax obligations and maintenance requirements for your new property.

By following these steps, you’ll be well on your way to a successful property purchase in Cyprus. Remember, the key to a smooth property-buying process is preparation, research, and the support of experienced professionals.

If you’re ready to take the next step in your property journey in Cyprus or need further assistance, DSG Real Estates is here to guide you every step of the way. Feel free to reach out to us for personalized advice and professional services tailored to your unique needs.