Cyprus is an ideal destination for investing in real estate for various reasons. Low taxes, tax incentives, year-round sunshine, and natural beauty combining mountains, sea, and forests are only some of these reasons. Additionally, Cyprus offers an attractive residency program for foreign investors. The Permanent Residency program is available to non-Eu citizens who invest a minimum of €300,000 (plus VAT) in a brand–new house or apartment in Cyprus (Regulation 5 and 6 (2) of the Aliens and Immigration Regulations).
There is a strong legal framework designed to protect the buyer while purchasing property in the Republic of Cyprus, however, it is strongly recommended to hire an experienced Cyprus lawyer to protect the legal interests of the buyer.
Some of the most common risks faced by purchasers of property are as follows:
- The property has been sold to another person.
- There are difficulties in obtaining title deeds.
- The property to be purchased is mortgaged or it is burdened with other charges.
- There were amendments to the property not approved by the relevant authorities.
These issues will result in unnecessary, lengthy, and costly litigation, which could have been avoided with the guidance of an experienced independent Cyprus lawyer. The Cyprus lawyer should be "independent" in the sense that he should not be connected to the Seller and/or the Developer/ builder and/or any estate agent involved in the transaction. An experienced Cyprus lawyer will conduct the necessary due diligence before the purchase of the Property (for a full article on the matter Click Here).
The due diligence will ascertain whether the property is burdened with mortgages or other charges, whether there are any other Contracts of Sale submitted regarding the property to be purchased, whether the property to be sold matches the description on the title deeds, and whether any amendments have been made to the property without acquiring the necessary permits.
If there are no title deeds regarding the property, the lawyer will also ascertain whether the necessary permits are in place for the issuance of title deeds. Due diligence is crucial in order to avoid any issues that will affect the property's value or usability.
Moreover, the Cyprus lawyer is in a better position to review the Contract of Sale and to negotiate the terms of the purchase with the Seller or their lawyer. The Contract of Sale is very important to the purchaser as only with its submission in the Land Registry, the purchaser gains rights on the property to be purchased.
To sum up, it is paramount to hire an experienced Cyprus lawyer to protect your interests and avoid unnecessary troubles when purchasing property. Our Cyprus law firm is able to help you with all the steps necessary to purchase property in Cyprus while ensuring a safe transfer of a title deed in your name.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.