Foreign buyers have traditionally been attracted to Cyprus because of the relatively low cost of property compared with many other European countries. The price per square meter to buy an apartment in the Centre of Nicosia is around €1660 while the same apartment in other locations such as Madrid could cost around €5300. However, current prices are now higher than they have been in the past.
Despite the increase, housing is still fairly affordable with old village homes available from €150,000, modern apartments from around €100,000 and large detached villas from around €245,000 depending on the location. (Prices in some of the more popular resort areas, especially in Paphos and on the golf resorts, are considerably higher.)
If you’re seeking a larger home with a sizeable plot and swimming pool, you will usually need to spend over €600,000 (depending on the area). The prices in Nicosia, the capital, can exceed this amount considerably whereas in other areas it is possible to find a reasonably sized house with a swimming pool for much less than €450,000.
Property prices
Here are the average prices for apartments, townhouses and villas in the five different districts of the republic.
Famagusta (Ammochostos)
This district is one of the main areas of interest for foreign buyers. The average price for an apartment (2 bedrooms) in the two principal resorts (Ayia Napa and Protaras) are around €100,000. In the case of a townhouse (3 bedrooms) prices rise to around €200,000 in Ayia Napa and €170,000 in Protaras. Villas with four bedrooms cost a minimum of €350,000 in the first resort and €250,000 with 3 bedrooms in the second resort.
Larnaca (Larnaka)
Prices in this region are rising faster than in other districts, and there are some modern and stylish ‘city’ apartments and penthouses there, with higher than average prices. Nevertheless, most property is still far cheaper than in most other parts of the island. An apartment with either 1 or 2 bedrooms costs around €198,000, a townhouse with 2 or 3 bedrooms is around €185,000 and villas with 3 or 4 bedrooms go up to €300,000.
Limassol (Lemesos)
It’s difficult to generate specific prices for homes in villages located in the foothills of the Troodos mountains. They’re still relatively cheap, compared with the rest of the island, but many need extensive renovation, which can be expensive. In Limassol city, apartments are between €120,000 and €220,000. Townhouses and villas are around €250,000 and €400,000 respectively. In East Beach the prices for an apartment, a townhouse and a villa are €130,000, €195,000 and €245,000 respectively and in Souni Village €170,000 for an apartment and €340,000 for a villa.
Although there’s a growing trend to buy old village houses and renovate them, not many estate agents have village houses on their books. If you’re looking for one of these houses, go to the village in question and ask around. Bargains can still be found in really remote villages but these are suitable only for people who truly love rural lifestyle.
Nicosia (Lefkosia)
In the old city centre, a two bedroom semi-detached house costs around €100,000, a semi-detached 3 or 4 bedroom house around €305,000 and a detached house around €340,000. Some older properties, especially those in the old city are government protected (this means you must obtain permission before carrying out any renovation) and are significantly cheaper.
There are also plenty of purpose-built apartments on the outskirts of the city, ranging from around €85,000 for a one bedroom apartment to around €170,000 for a three bedroom house.
Paphos (Pafos)
The average prices in the Paphos district are as follows: a two bedroom apartment is around €150,000, a townhouse is €250,000 and a villa is around €500,000. Do note however, that the prices of apartments, townhouses and villas on the Aphrodite Hills development are rising faster than on the rest of the island.
Extra costs and fees
If you’re planning to buy a property in Cyprus, you should take into account any legal fees and taxes, such as transfer fees, property tax, stamp duty and registration of the mortgage (if you have one). These usually amount to around 4,4% of the purchase price. It’s a good idea to consider these extra costs as an investment into the house, so when you sell your property don’t forget to include this money in the selling price to make sure you recover the full price.
Legal Fees
If you use a lawyer (which is highly recommended), their services will cost you between 1% and 2% of the property price, depending on the value of the property and the complexity of the sale. Services include the search with the Lands Office, the verification of planning and building permits, checks that ensure the land is suitable for building (if relevant), the drawing up of contracts, stamping and registering the contracts, and applying for permission to purchase from the Council of Ministers.
Surveyor’s Fees
The Cyprus Scientific and Technical Chamber (ETEK), with which any surveyor you use should be registered, can give you a guide to charges as well as a list of surveyors registered with them. Average charges are around €500, but this naturally depends on the value of your property and the complexity of the report you wish to require.
Stamp Duty
Stamp duty is levied on property purchase contracts at a rate of €1.50 for every €1000 for contracts up to €170,000 and €2 for contracts over that price. The limit for a stamp is €20,000 and is payable within 30 days of signing a contract.
Application to the Council of Ministers
The transfer of property to a non-Cypriot requires permission from the Council of Ministers not including EU-citizens permanently living in Cyprus. This is done by taking all the relevant paperwork to your nearest District Administration Office .
Your lawyer can make the application on your behalf, and this service is often included in the standard charge for legal fees, so you would save nothing by doing it yourself. Check with your lawyer. Note that the application is very much a formality, especially since Cyprus joined the European Union, and any genuine application is usually approved automatically.
Mortgage Fees
If you have a mortgage, you must pay a registration fee of between 2.23% and 3.75% of the amount borrowed.
Value Added Tax
Value Added Tax (VAT) is payable on all new properties. The good news is that first-time buyers pay VAT at a rate of only 9%. All other buyers will pay the standard rate of 19%.
Selling Agent’s Fee
This is paid by the vendor in Cyprus and is normally a minimum of 3%, although most agents charge around 5%.
Transfer Fee
A property transfer fee is payable when your lawyer goes to the Lands Office to transfer and register the property in your name. This can be a long time after the purchase. The fee depends on the value of the property and whether it has been purchased in one or more than one name.
For the first €85,000 of a property’s value, you pay 3% of the purchase price; between €85,000 and €170,000, the rate is 5%; and over €170,000 the rate is 8%.
If a property is purchased in a single name, the purchaser pays the entire fee. In practice this means that if you are purchasing a property for €130,000 the fees payable are €4792. If the property is purchased in joint names (e.g. husband and wife), the purchase value is divided between the two and each is assessed separately. This means that both parties save taxes as these are calculated on a lower price, which is respectively 50% of the actual price.
This article is adapted from Buying a Home in Cyprus from Survival Books.