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Buying & Selling

Advises for Buyers

What should I consider before purchasing?
Even before starting to look at houses, find out what price home you can afford. In general, the price you can afford to pay for a home will depend on five factors:

1) Your down payment
2) Your income
3) Your outstanding debts
4) Your credit history
5) The current interest rates

The Cyprus Home Selling Market tends to be very mature and stable. Even though each Seller before advertising his house will either ask for the opinion of a Chartered Surveyor or his Real Estate Agent on the price that his able to get. Of course there are different types of sellers as each person might has different needs at different times given.

For Resale Houses

The major reasons that people are selling their houses in Cyprus are:
a) The size of the house.
A family house seems too big for parents after children have moved out for studies or relocated.
A young family looking for a bigger house after having children.

b) The size of the plot
Some families find it difficult or tiring to maintain a big garden while others need more exterior space.

c) Relocation in a different city or country due to job.

d) Economical reasons in relation to any housing or business mortgages.

e) Change of Lifestyle
Some people decide that they want to relocate from the city to the suburbs or even closer to the Inland villages as they feel the need to come closer to nature and away from the busy rhythms of the city.

In any case, different people, different needs, different timing etc. If we take for granted that the majority of houses for sale in Cyprus from Individuals are advertised at realistic prices, then according to each selling need each owner has the proper type of negotiation can apply. A person wishing to establish a quick sale because of relocating purposes or facing any kind of economical problem is for sure much more flexible on the price than any of the other categories described above.

For Brand New House / Developments

Here things tend to be very straight forward. All developers in Cyprus tend to work with the same profitability, as they are all facing the same costs (Cost of purchasing Land, Architecture plans and Building permissions, Construction cost per sqm and Taxation for each sale). Of course the location of the property is always a very strong adding factor on setting the price for a developer. A house right on the Sea side will always be a unique location and has to be paid accordingly.

The bottom line is that each house can be negotiated up to the point that the Seller feels that is still a good price and the Buyer feels that he is not paying any more money from what he is suppose to pay. So feel free… After visiting the house that is coming closer to your criteria and needs place an offer.

As a general rule the market value of each property is what any interested party is willing to pay.

What Extra costs will I face as a Buyer ?
The Extra costs that a Buyer is facing in Cyprus for each purchase are the Stamp Duty, the transfer Fees and the Solicitor fees.

A. Stamp Duty
The purchaser is liable for the payment of stamp duty at the rate of 2.56 EUR per thousand (or 0.15%) up to the value of 170,860 EUR thereafter the rate is 3.42 EUR per thousand (or 0.20%). This should be paid within 30 days of signing the contract.

For example if the purchase price is 250 000 EUR:

The first 170,860 EUR EUR 170,860 * 0.15 % = 256.29 EUR
Any amount above 170,860 EUR EUR 79,140 * 0.20 % = 158.28 EUR
  TOTAL 414.57 EUR

% : Rate per thousand

B. Transfer Fees
Real Estate Transfer tax-fees are necessary in order to transfer FREEHOLD ownership to the name of the purchaser. This can be done as soon as the relevant Government Authority has issued the title deed and the purchase has been completed. The Transferee is responsible for the tax payment. The rates are on a graduated scale.

Value of property
Transfer fee
rate (%)
Up to 85,430.10 3
From 85,430.10-170,860.14 5
From over 170,860.14 8

For example if the purchase price is EUR 250,000:

The first 85,430.10 EUR EUR 85,430.10 @ 3 % = 2,562.90 EUR
85,430.10 to 170,860.14 EUR EUR 85,430.10 @ 5 % = 4,271.51 EUR
Any amount above 170,860.14 EUR EUR 79,139.86 @ 8 % = 6,331.18 EUR
TOTAL 13,165.59 EUR

PLEASE NOTE: Should the purchase be made in joint names (provided the price is more than 85,430 EUR) the effective value for calculation is halved.
For example if the purchase price is EUR 250,000:

1st Buyer EUR 85,430.10 @ 3 % = 2,562.9 EUR
EUR 39,569.9 @ 5 % = 1,978.5 EUR
2nd Buyer EUR 85,430.10 @ 3 % = 2,562.9 EUR
EUR 39,569.9 @ 5 % = 1,978.5 EUR
TOTAL 9,082.8 EUR

PLEASE NOTE: For all those property sales for which VAT was paid, no transfer fees are applied. For all other cases, a 50% reduction is applied on the amount shown above.


Since Cyprus’ EU accession in 2004, a standard VAT rate of 19% is required to be paid when buying a new property.

However, following a recent VAT Amendment Law, a reduced VAT rate, starting from 5%, is applicable for the acquisition of new residential properties.

For the reduced rate to be in effect, certain terms and conditions must be met:

  • The property must be used as the primary and permanent residence of the applicant (for the next ten years).
  • The applicant has not acquired any other residence in Cyprus with a reduced VAT rate.
  • The applicant must be an individual, over 18 years old, thus legal entities are excluded.

The reduced VAT rate of 5% is applied on the first 200 square meters (building coefficient) of the property as per the architectural plans submitted to the Authorities. On the remaining square meters, the standard rate of 19% is imposed.

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What should I have in mind while viewing properties?

1. The LOCATION. What advantages or disadvantages the location offers.

2. What are the local amenities around the property and at what distance.

3. Ensure that the property is what you want. Does it tick the right boxes?

4. Check where the sun rises and sets on the property. Imagine the property through all seasons.

5. Make sure you can afford it. Don't forget to allow for the rate of exchange and legal costs.

6. If possible meet the neighbors, get a feel of the area from someone else that lives there.

7. Is the property heated or air-conditioned? If not does it have the provisions for it? Does it have solar panels?

8. Does the property offer car parking area? Is it covered or open?

9. Does the property have a swimming pool? Look at the condition of the tiles/liner. Ask for the details of the company that fitted it for maintenance reasons.

10. What comes with the house? In case of a purchase always attach an inventory to the contract of sale.

In case we buy a house what upgrades should we go for? What holds the most value? Do we upgrade the lot?
A lot depends on why you are buying the house. Are you buying it mostly as a home or as an investment? There is a difference. For the most part, upgrades are high-profit items for builders. They aren't designed to enhance the value of the house, but make you happier with the house you do buy. If you are looking at your home as an investment, then you buy from the smaller to medium size in the tract and spend only a minimal amount on upgrades. If you are looking at your purchase as a home, then you select upgrades that will enhance your quality of living.

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Advises for Sellers

What are the main factors determining how fast I can sell my property?

You have no control over the location of your home, but its location helps determine value.

You control this. The right price can only be determined by a well-researched market evaluation. As a home seller, you should get a computerized market analysis comparing your home to similar properties that have recently sold and those currently on the market.

The condition of the property
You control this also. Your home's condition is vital to a sale. A clean, well-maintained home enjoys a competitive edge over all the other homes on the market. You'll sell faster and at a higher price if you "stage" your home to enhance its appeal.

A correct and detailed description of your home features is always advisable as this will help you market your home the best possible way. A well described list of your home's features will attract more clients and will secure a better price.

The Realtor advises you on market conditions, pricing and staging recommendations, contracting, financing, title work, appraising and closing activities. Just as you insist on an experienced well-prepared doctor to treat your family, you want a Realtor with a proven track record who does his/her homework representing you in the sale of your home.

How to show your property to prospective buyers?
If clients are viewing your property accompanied by an Estate Agent then better to leave the Agent do the tour as long as you are sure that he/she knows the property well. On the other hand if the Agent for some reason is not very familiar with the property and your assistance might be needed it's advisable to mention the following points:

a) Location (Distance to the city center, sea, airports, general facilities etc)
b) Extra features (Central heating, air condition, fireplace, covered parking, loft etc)
c) Say what fixtures and fittings are included in the price (Furniture and fittings)
d) If you have any special requirements as a seller with the price, method of payment or delivery date better to state them from the beginning.
e) Try to point out all the positive features of your property without being pushy.

Will testing a bigger market and a better market with greater skill yields a better price?
It is axiomatic that the larger the market you can reach and the higher the quality of that market, the better the price you will realize. It stands to reason, for example that sellers working alone can expose their home only to the small segment of the market that can be reached by a single sign and limited advertising. It is also important to note that, in spite of the multiple signs and substantial sums of money spent on advertising, these two sources typically account for only about 20% of the actual buyers attracted to a typical real estate office. The other 80% of the market is represented by the efforts of cooperating brokers and the marketing activities of real estate brokers and sales associates.

It is also well established that the buyers most ready, willing and able to act are almost invariably availing themselves of the services of real estate professionals.
Finally, the best buyer, unless he or she is being handled by a skilled professional, can often come and go without making a commitment.

Does a home that is priced realistically and marketed effectively always sells?
There's an old saying that the three most important words in real estate are 'location, location and location." Like a lot of old sayings, it is simply untrue. No matter how poor the location might be, there is a price at which it will sell and that price will be determined by testing the market.
The three most important words in real estate, therefore are price, terms and marketing. Unless the price and terms are competitive, the chances of a home selling are slim to none; and even realistic pricing should be supported by the thorough testing of the market and aggressive challenging of the competition that can best be performed only by skilled professionals.

Note that :
When realistic pricing is combined with effective marketing, there is a buyer for everything and given these conditions, any home can be sold in any market.
Homes that languish unsold on the market for months and even years are ignoring these "facts of real estate life," often causing unnecessary inconvenience and financial damage to their owners and agents.
The market is not always kind, but it is never wrong and those who believe otherwise pay a heavy price for ignoring these "facts of real estate life".

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Steps to follow when buying a property