Before you purchase a property it was worth considering what the total costs are like to be. Will you pay cash or take out a mortgage? In addition, there are other costs which you need to factor in to the total outlay.

Fees
Mortgage
Title Deeds
Property Tax

Reservation fee - this is paid to the agent or developer to secure the property when you have agreed a price and terms of payment.

Legal fees - many lawyers will charge around 0.75 - 1% of the total purchase price of the property in respect of legal fees. NB Never use a developer's lawyers even if they offer it free of charge. Seek independent advice. Also there will be Stamp Duty payable on the price of the property. It is sensible if Greek is not your native tongue to have the contract written in English too.

Agents Fee - this should be paid by the seller and not the purchaser.

Arranging a mortgage

The amount of mortgage that you can be lended is dependent on your residency status :

Cyprus residents can arrange up to 90% mortgage

EU residents may require to pay around 20% of the total purchase price or even slightly more (25-30% )

Non-EU residents may require to pay around 30% of the total purchase price or possibly more

NB Arrangement fees are often charged by lenders. Expect to pay between 0.75 - 1% of the total amount of the mortgage.

Repayment terms - these can vary from as little as 10 years or longer.

How do I qualify for a mortgage?

To qualify for a mortgage, the lender will consider whether you have sufficient income to pay your mortgage and whether the property can be mortgaged.

Purchasing process

Once you have found your property ask the agent to agree the offer with the seller. If accepted, at this point you should pay the reservation fee to the agent or developer. Once paid, the property will be withdrawn from the market until you can appoint an independent lawyer. You now have 28 days to undertake all searches, surveys and appoint a lawyer to do the official checks e.g. planning permission. You lawyer will then agree and prepare the contract of sale.

Before you sign the contract of sale, it is important to check all the details and conditions are correct e.g. purchase price, fixtures/fittings included. The day the contract of sale is due to be signed you will need to pay the deposit to the seller as previously agreed. Completion of a sale should be no longer than 28 days. Should the property you are purchasing not be completed yet, a schedule of payment dates will also be given.

Your lawyer will set a date for completing the sale and you must ensure that you have the necessary funds available either in your bank or from your lender plus have arranged buildings and contents insurance. It is also worthwhile considering life insurance to cover the cost of the mortgage in case at some point you are unable to pay your mortgage.

Although you have purchased the property and the land, title deeds will need to be issued by the relevant authorities. At present, this can take up to 2 years or longer. Once title deeds are available, you will need to pay Transfer Tax.

You will be required to pay local Municipal Tax which covers the cost of refuse collection and street lighting. You may also be required to pay an annual property tax which is assessed on the value of the property in 1980 but only applies to properties in excess of a certain value. You will probably find that most properties are exempt.

Cypriot succession law applies to all properties in Cyprus even if you are not a Cypriot resident. By law you are not allowed to leave your assets to anyone you want. Property must pass to spouses/children equally. If you are unsure of your status you should discuss this with your lawyer.