Remote purchase of real estate in Cyprus in 2024

You can conduct a real estate purchase transaction in Cyprus completely remotely, without coming to the island. You will be able to choose an object, get acquainted with the developer, issue power of attorney and buy a house online in less than 2 months. Let’s look at the stages of buying an apartment in Cyprus in order to understand how to remotely conduct a transaction and minimize your participation in it.

The content of the article

1. Remote purchase of an apartment in Cyprus
   1. Step 1: Selecting an object
   2. Step 2: Getting to know the developer and the lawyer
   3. Step 3: Online views of apartments and showrooms
   4. Step 4: reservation of the facility and signing of the purchase agreement
   5. Step 5: Payment and compliance
   6. Step 6: Registration of the transaction with the Cyprus Land Department
   7. Step 7: VAT refund when buying a property in Cyprus
2. Expenses for registration of a real estate transaction in Cyprus

According to Tranio experts, about half of foreign real estate investors in Cyprus conduct transactions remotely: such a process is in fact no different from personal presence and allows you to save several weeks when buying properties at the start of sales, when apartments leave the market in a matter of days. On top of that, the investor does not spend money on flights and accommodation in the country.

Remote purchase of an apartment in Cyprus

All procedures related to the purchase of real estate can be carried out remotely. If an investor wants to apply for permanent residence, he needs to come to the island only once to submit biometrics. Recall that permanent residence in Cyprus for investments is the only permanent residence program available to Russians for the purchase of real estate among the EU countries.

Step 1: Selecting an object

The buyer of the property leaves a request on the Tranio website or via telegram, after which our experts in Cyprus consult and offer a selection of the best properties on request.

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At this stage, a chat with the client is created, where further communication with Tranio managers takes place. Here the investor can ask the first questions, study the market analysis with comments from our experts and get a selection of objects in the location of interest.

Tranio experts select suitable real estate options in advance, based on the requests and preferences of the investor, and organize online screenings for the presentation of projects.

Step 2: Getting to know the developer and the lawyer

An important stage of a remote transaction is getting to know the developer. Having selected 2-3 objects, Tranio organizes an online meeting with developers to answer questions about payment terms, guarantees, construction materials, deadlines and much more.

The most common fear of investors who are going to buy real estate remotely for the first time is to get to an untested developer who will not meet expectations. Tranio offers projects by reliable developers with a solid reputation and presence on the market for 10 years or more.

We work with backbone companies that have proven themselves in the Cyprus market, and the analytics department of Tranio’s Cyprus office selects in-demand projects that will show high profitability in the future at a favorable price per square meter at the entrance.

At the same stage, there is an acquaintance with the lawyer who will accompany the transaction. The cost of legal support depends on the tariffs (most often 1% of the transaction amount). Sometimes this option may be included in the package of services from the developer.

The terms of compliance, transfer of funds, VAT refund and procedures for obtaining permanent residence are discussed with the lawyer. A power of attorney for a lawyer is issued remotely — documents can be sent by mail. The lawyer will draw up the papers and represent the investor in state institutions during the real estate registration procedure.

It is important for us that at this stage customers have a clear understanding of how the transaction is going. Online meetings with developers and lawyers remove most of the objections and questions about remote purchase.

Step 3: Online views of apartments and showrooms

After selecting real estate options and getting to know the developer and the lawyer, the client has several preferred apartments that he wants to watch via video link.

Tranio’s local managers in Cyprus travel to the facility and arrange a call with the client. The investor gets acquainted with the area, the infrastructure around the project and the progress of construction. For clients with a busy schedule, we record a similar video tour.

Showroom screenings help to create an image of the future apartment, where Tranio managers also organize an online presentation. At this stage, the client can see what an apartment or villa with furniture and finishing will look like after delivery.

Step 4: reservation of the facility and signing of the purchase agreement

At this stage, when the client has made a choice in favor of the best object and is ready to sign a purchase and sale agreement, the transaction processing process begins. First, the investor must make a deposit of 10-20 thousand euros.

It usually takes 1 month to agree on a purchase and sale agreement, sign it, issue an invoice and pay the first installment.

Step 5: Payment and compliance

The Republic of Cyprus is a full member of the EU, which means it is among the unfriendly countries that fall under restrictions. Nevertheless, in 2023, residents of Russia are allowed to buy real estate from residents of unfriendly countries.

Tranio experts will help you pay for the purchase of real estate in Cyprus without having accounts with foreign banks. It will be enough to transfer funds by SWIFT transfer from an unsanctioned bank.

On the part of Cyprus, there are no restrictions for Russians to buy real estate. The Government of the Republic of Cyprus is loyal to transactions with residents of the Russian Federation and does not close the Cyprus permanent residence program for investments.

After payment of the invoice, the Bank of Cyprus conducts the KYC (know your customer) procedure, examines the origin of the funds and verifies the grounds for the transfer. The compliance procedure usually takes 7 days.

Step 6: Registration of the transaction with the Cyprus Land Department

Registration of the transaction begins immediately after passing the compliance. The lawyer submits documents to the Cyprus Land Department and registers the transaction.

In turn, the client transfers the remaining part of the amount or pays according to the installment plan. At this stage, the investor receives a certificate of ownership.

Step 7: VAT refund when buying a property in Cyprus

The VAT rate in Cyprus is 19%, however, buyers have the opportunity to purchase a new property with a preferential VAT rate of 5% under the following conditions:

• The purchase is made for an individual.
• The buyer is not going to rent out the purchased object.
• The buyer does not have any other real estate in Cyprus purchased during the last ten years with a preferential VAT rate.
• As part of the preferential VAT, housing must be purchased for your own residence.

Preferential VAT is applied when buying or building primary housing for the first 130 sq. m. meters and covers the first 350 thousand euros of the value of the property. The total value of the property should not exceed 475 thousand euros, and the area of the object is 190 square meters. meters.

After buying a property, you can apply for a refund of the difference between the preferential rate of 5% and the standard rate of 19%.

Tranio managers in Cyprus accompany the transaction at every stage. Leave a request for advice on buying a property in Cyprus and receive a roadmap describing all the steps.

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Expenses for registration of a real estate transaction in Cyprus

The process of buying a property in Cyprus involves a number of operating costs. We have collected possible expenses in a separate table:

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