Cyprus luxury real estate has always been of interest to foreign buyers. Even the coronavirus pandemic hasn't affected demand too much.
Why? Real estate in Cyprus has not one but several significant advantages.
Why is Cyprus property attractive?
Real estate in Cyprus (especially premium-class housing) has several bonuses at once. That is why the island is most often chosen by wealthy buyers from third countries. As a rule, Cyprus is of greatest interest to citizens of Ukraine, Belarus, Russia, China and some countries of the Middle East.
The owner of luxury real estate in Cyprus get:
- The right to obtain permanent residence permit for the whole family.
- Excellent climate, ecology and standards of living.
- Reliable investment of funds as housing in Cyprus is growing in value every year.
- Opportunity to do business on the island.
- The right to rent out an apartment or house and receive a decent income (up to 10% per year of the real estate price).
- Obtain a passport of Cyprus and the EU after 2555 days of staying in Cyprus.
It is obvious that investors choose real estate in Cyprus for a variety of reasons. Someone plans to live here permanently or periodically with their family, someone just wants to make a reliable investment. In any case, buying luxury real estate in Cyprus is profitable.
Features of the luxury real estate sector in Cyprus
What is included in the concept of "luxury real estate"? It is not worth judging the class of housing by its price as there is too much discrepancy in figures. Comfortable apartments in Limassol or Paphos located in an elite residential complex can be purchased for EUR 200-300 thousand. Villas or penthouses are much more expensive: several million euros. Some properties can exceed EUR 10 million.
The most expensive real estate sold in 2020 cost EUR 14 million.
When defining the premium class, different criteria are used:
- location: a well-developed infrastructure and accessibility to the city center are required
- characteristics of the territory: a closed residential complex for apartments, service and security of the entire for cottage villages
- real estate size and plan: elite housing is spacious and, as a rule, planned according to the requirements of the buyer
- finishing: very often luxury housing is sold fully 'equipped', with appliances, furniture, a "smart home" system and designer renovation.
It should be noted that another distinctive feature of luxury housing in Cyprus is that the property is new. Second luxury real estate is rare. Sometimes buyers even look for pre-construction luxury property. This allows them to submit documents in advance and obtain a title deed earlier.
Not all luxury real estate is located in the resort area along the sea, although foreign buyers are interested in seafront property. Yes, sea views and access to the beach are important, but not the only criteria for choosing a home. Locals prefer to buy country houses in the mountains, as there is quiet, calm, cool in summer and snow in winter.
Cyprus Property Purchase Rules for Foreigners
According to the legislation of Cyprus, a foreigner has the right to own any real estate on the island: commercial, residential and even land. The latter is important, since a non-resident isn't allowed to own a land plot in some countries. So this is another plus of Cyprus.
Before choosing a home, a buyer from abroad needs to obtain permission from the Council of Ministers of Cyprus as a non-Cypriot cannot buy property without this permission. You can easily get permission if you don't have any problems with the law and aren't wanted by Interpol.
A foreign citizen has the right to receive only one title of ownership and own two units of real estate at the same time. The total area of properties cannot be more than 4014 m2.
Family status doesn't matter as the limit (4041 m2) is applied to the whole family. At the same time the spouse can register a second property and receive a title. Thus, the family can have only 4014 m2 but two titles.
This rule does not apply to adult children.
The buyer's children can also purchase a 4014 m2 property as well as obtain a title deed.
The buyer also can register their company in Cyprus and buy commercial real estate objects. The purchaser will be able to sell and rent it out.
The procedure for choosing and buying luxury housing in Cyprus
The easiest and most reliable option is to contact a real estate agency and prefer the turnkey project. In this case, all legal subtleties, procedures and other difficulties will be solved by agents. The buyer only has to make a choice, transfer money and put their signatures on the documents.
So, what stages does a foreign real estate buyer go through:
- Object selection. Agents not only select suitable accommodation, but also arrange sightseeing tours in different areas of Cyprus. During a pandemic, remote selling is popular.
- Deposit of EUR 5-10 thousand. This is necessary in order for the object to be removed from the sale and assigned to the buyer.
- Preparation of documents: a complete list will be provided by the agent. As a rule, these are copies of both passports, police clearance certificates, application for permission from the Council of Ministers, etc.
- Opening an account in a bank in Cyprus: payment of duties, taxes, the movement of funds from buyer to seller will be carried out in Cyprus. It is especially important to create a separate private account (or even several) for those non-residents who expect to get permanent residence in Cyprus in a simplified way if buying real estate from EUR 300 thousand.
- Payment of all duties, taxes, registration of a purchase and sale transaction. All this is usually done by an agent.
- Obtaining a title of ownership: as a rule, it takes 1-2 years (if it is an object under construction, if it is ready, then as a rule there is already a title). If there is still no title, the owner retains the full right to dispose of his property, even to sell it, however, the transaction without a title is done somewhat differently than transactions with the title, but in any case it is still legal.
Why is it much more convenient and easier to contact a real estate agency in Cyprus? The fact is that this greatly simplifies the life of the buyer. The buyer does not need to constantly fly to Cyprus. It will be enough if the buyer chooses an object and visits the island only once.
Here are a few more advantages of contacting an agency:
- turnkey deal
- after-sales support: assistance in adapting to life in another country, advice on paying utility bills, taxes, recommendations for placing children in a kindergarten / school, etc.
- maintenance of a real estate object after its purchase, if it is a house: connection to the security console, organization of cleaning of the villa and its territory, etc.
- assistance in renting out the purchased object, its maintenance in the absence of the owner
- lawyers can help the buyer and their entire family obtain permanent residence: they quickly draw up all the paperwork and submit an application to the local authorities.
DOM real estate agency Cyprus is ready to offer its services for the purchase and sale of the elite sector housing. Experts can help in choosing an object and preparing a document at all stages, answer all questions and recommend the best solution.
Obtaining permanent residence in Cyprus when buying luxury real estate
In 2020, the Cyprus passport by investment program was suspended. Nevertheless, foreign investors can still count on the simplified issuance of permanent residence to the whole family.
The conditions for obtaining a Permanent Residence Permit are as follows:
- purchase of one or more primary real estate objects in the amount of EUR 300 thousand
- making a payment in the amount of EUR 200 thousand at a time
- making a deposit of EUR 30 thousand to a Cypriot bank account
- providing evidence that the funds for the home purchase were earned legally and outside Cyprus
- providing evidence that the investor and his family have sufficient income from abroad (e.g. from their native country) to live on the island: EUR 30 thousand for the applicant, EUR 8 thousand for his spouse, EUR 5 thousand for each child.
What gives permanent residence in Cyprus?
First of all, it is an opportunity to obtain citizenship by naturalization (after 2555 days of staying in Cyprus). Prior to that, the holder of a Permanent Permit can easily apply for visas for travel to the USA, the European Union, receive free medical care on the island, open a business, and pay low taxes.
For more information on obtaining permanent residence in Cyprus through the purchase of real estate and a list of all necessary documents, you can read the link.
Luxury real estate in Cyprus is an opportunity to live temporarily or permanently on a sunny island. A permit for permanent residence is usually issued quickly (within 2 months) and without difficult conditions.
In addition, there is always a demand for luxury housing in Cyprus. Such housing can be both profitably sold and rented out. If, after reading, you still have questions, please contact the specialists of the DOM real estate agency Cyprus or use the database of useful articles in the DOMLiVE section.
- Where to live in Limassol? Coastline vs mountains (link)
- Limassol city overview: a place to live, relax and invest (link)
- Paphos vs. Limassol. All the pros and cons (link)
- Paphos Real Estate Market Overview (link)
- First acquaintance with Larnaca (link)
Photos: pixabay.com, dom.com.cy