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in Cyprus

About Life in Cyprus and Permanent Residency

About Real Estate in Cyprus

About Taxes and Investments

May 30, 2024

How to Purchase Property in Cyprus: Step-by-Step Guide

Step 1: Preliminary Assessment of Investor and Selected Property 

Investor schedules a Free Consultation with our team, and provides us the required set of documents. Astons conducts a preliminary assessment of your likelihood of success.

What does due diligence review?

  • Official income and its confirmation
  • Tax payments
  • If any criminal records and open legal proceedings exist
  • Previous visa refusals
  • Absence of your name in international databases of violators, sanctions, fugitives, and criminals

Every property in Astons’ Cyprus catalog has been vetted and guaranteed safe for the Golden Visa program – as well as a legally safe and sound investment. Investors will not be confronted with any hidden property legal issues down the road. 

Step 2: Real Estate Purchase 

Property must be purchased before applying for the Golden Visa.

The Golden Visa application must include proof of property ownership or the purchase agreement. 

Initially, the investor can reserve the property with a 10% down payment, while Astons and the seller agree on the terms of the purchase agreement. 

Then the documents are signed and the agreed to payment is made in full [no mortgages]. 

The investor pays the cost (in full or installments depending on the agreement terms) + 19% VAT, 14% of which you can later recover as a tax deduction if certain conditions are met.

Step 3: Registration with the Land Registry

Investors have only two months from the date of the purchase agreement to register the transaction – Astons handles this on behalf of our clients.

Step 4: Payment of Stamp Duty 

Stamp Duty is a mandatory tax payment calculated based on the agreement value:

  • 0.15% for the first €170,860
  • 0.2% for the remaining amount

Step 5: Approval from the Council of Ministers 

All non-EU investors are legally required to obtain official permission to purchase property in Cyprus – from the region’s Council of Ministers. 

With power of attorney, Astons’ team can handle the entire property and Golden Visa process, including this step. 

Step 6: Finalizing Investment

If only a down payment was made to secure the property, the remaining amount must be paid at this point.  

You can also apply for a reduced VAT rate. 

Standard tax is 19% (paid in Step 2), however, a foreign buyer has the opportunity to reduce it to 5%, with the difference received as a tax deduction. 

To reduce the VAT rate, there are a few conditions:

  • It applies only to new properties up to 200 sq.m. purchased as a first and primary residence in Cyprus
  • The property must be used solely for personal residence

Step 7: Golden Visa Application 

Astons’ lawyers prepare the Golden Visa application package and submits it to the Civil Registry and Migration Department. 

The application timeframe for due diligence and approval is typically about three months.

Step 8: Approval and Receipt of Migration Certificate

Step 9: Biometrics Submission and PR Card Issuance 

Golden Visa applicants must visit Cyprus in the year following approval to provide biometric data for residence cards. PR card printing usually takes up to 40 days.

Additional Expenses 

Government & Processing fees – €500: For processing the Golden Visa application, charged to the investor and each family member. 

VAT payment. VAT is not included in the required €300,000 to be spent on real estate purchase.

Stamp Duty 0.15% for the first €170,860 of the transaction amount and 0.2% for the remainder: This is a one-time government tax on real estate purchases, payable within a month after signing the purchase agreement.

€70+ fee for biometrics and PR card printing per person.

Astons Legal and Consulting Services Fee: Calculated separately, with the cost depending on your family composition.

For a detailed calculation of the total cost for your application, schedule a Free Consultation today. 

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Every client is assigned a personal manager who guides the entire process of obtaining citizenship or residency from start to finish

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