Legal & Financial Information
Purchasing property is an enormous endeavour, one that requires careful planning and expert assistance. At Askanis Group, our team of professionals and associates are on hand to assist you, every step of the way. Read below for some useful background on the most important Legal and Financial aspects of purchasing a piece of property in Cyprus.
HOW TO PURCHASE PROPERTY FROM ASKANIS GROUP
A STEP-BY-STEP PROCEDURE
STEP 1: Contact Us
STEP 2: Meeting with our Sales Department
After you reach out to us, a member of our Sales Department will contact you to arrange your visit, and offer you suitable property options based on your specific requirements. Our company offices are located in Limassol and are easily accessible by car.
STEP 3: Visit the projects / view the property
Once you have identified the projects that interest you, a member of our Sales Department can arrange a viewing of the properties. All our properties are located on the coast of the city of Limassol, within walking distance to the sea. To find out more about our properties, please click here.
STEP 4: Negotiate -> Close the deal -> Pay the deposit
When you have chosen the property of your liking, you will visit our offices to discuss all relevant matters and pay the requisite deposit to reserve the property.
STEP 5: Find a lawyer
You will need to assign a local lawyer to assist you with the preparation of the Contract of Sale. Askanis Group cooperates closely with renowned law offices in Limassol and can recommend a lawyer who can assist you with all your needs.
STEP 6: Sign the Contract of Sale -> Pay the first installment
Once the Contract of Sale is signed, the first installment (usually 30% of the purchase price) must be paid by the Purchaser.
STEP 7: Stamp the Contract of Sale at the Tax Department and deposit it to the Land Registry
After the first installment is paid, the Contract of Sale needs to be stamped at the local Tax Department offices and deposited to the Department of Lands and Surveys. This ensures that your property cannot be sold to a third party. Please see the cost of the stamp duties below.
STEP 8: Meet with the interior designer and architects
As per the specifications in your Contract of Sale, you can choose the finishes for your property with the assistance of the project’s interior designers and architects.
STEP 9: Delivery of your property
Once your property is completed, it will be delivered to you so that you may begin your new life in your dream home!
STEP 10: Title Deeds
When the title deeds are issued, you can visit the Department of Lands and Surveys with a member of our team who will assist you with transferring the title deed onto your name (see below for the relevant cost).
Property Duties and Other Costs
Stamp Duty Fee
In case of a sales contract, the purchaser is liable for the payment of stamp duty at the rate of 0.15% on the first €170.000, and 0.20% above this threshold. The duties and fees are payable when the Contract of Sale is stamped at the Tax Department prior to its deposition to the Land Registry.
- 3% on the first €85.430
- 5% from €85.430 - €170.860
- 8% €170.000 +
Upon transfer of the property and registration in the purchaser’s name, the district Land Registry Office will charge transfer fees, which are based on the market value of the property at the time of the purchase and are calculated as follows:
Note: For properties owned jointly by a couple, transfer fees are charged on 50% of the property value for each, providing an advantage for any property value exceeding €85.430.
Note: Properties purchased after the 2nd of December 2011, which are subject to VAT will be exempt from the above transfer fees. Properties not subject to VAT will be eligible for a 50% exemption from the above transfer fees.
VAT Payable on Property
VAT in Cyprus is currently 19%.Clients can also apply for 5% VAT on the purchase of a residential house by providing the following information and documents:
- Original copy of the application for town planning or building permit, true copy of the original;
- Copy of the town planning or building permit, true copy of the original;
- Purchase agreement or contract to build the property duly stamped (€1,71 stamped);
- Other documentary evidence regarding the purchase or building of the property such as deposit receipts, application for/granting of loan, invoice corresponding to receipts for payments;
- Registration certificate for building land (in case the town planning or building permits were issued to persons other than the beneficiary), if applicable;
- Written certification by the project surveyor of the total covered area of the property (find attached the form to be completed);
- Affirmation of the contractor or the contracting company that the annual contracting permit for the equivalent grade of work is held (find attached the form to be complete);
- Certificate from Council for the Registration and Control of Building and Civil Engineering Works (ΕΤΕΚ) to confirm ownership of the annual license contractor during the construction period of the project;
- Architectural drawings (elevations, floor plans) approved and stamped by the competent authority in scale 1:100;
- A plan with the total area of the property;
- Copy of beneficiaries’ identity cards/passports;
- Copy of marriage certificate for married persons;
- Within 6 months from the date of first occupation, the beneficiary must present evidence that the property is used as the main place of residence. Such evidence includes: copies of phone, water and electricity bills, municipal or city council rates or similar evidence proving that the property is used by the beneficiary as a permanent place of residence. These documents will be requested later by the VAT Authorities;
- The application form must be signed by the beneficiary and his/her spouse in case of married persons.