The firm in most cases acts for the buyer in property transactions with knowledge of Cyprus laws and practice to best protect and safeguard its client’s rights.
For foreign investors the importance of sound property law advice coincides and is part and parcel with immigration advice since to obtain a permanent residence permit or citizenship by investment there is a requirement to purchase immovable property in Cyprus.
The property department of the firm initiates a due diligence procedure by conducting a search at the District Land Registry Offices in order to assess whether any encumbrances are registered against the property including mortgages and memos. A search is conducted on the seller’s company (the developer) at the Cyprus Registrar of Companies in order to ensure that it is in good standing and winding up proceedings have not commenced against it.
Once the contract of sale has been negotiated by the firm on behalf of the buyer, arrangements are made so that it is signed by both parties. The firm then attends the District Tax Office to pay the stamp duty on behalf of the buyer where stamp duty is levied at a rate of 1.5% for amounts up to €170.860 and thereafter at a rate of 2.0%.
The firm will deposit the stamped contract of sale at the District Land Registry Office for the remedy of specific performance in accordance with law 81(I)/2011.
A foreign investor is required to obtain a permit to own immovable property in Cyprus from the relevant District Council. The firm undertakes to submit the application form together with all the supporting documents in order to obtain such permit from the District Council.
Some of the services provided by the Property Department
- Drafting and negotiating sales agreements for the purchase of a property
- Entering into negotiations with the developer
- Drafting the necessary power of attorney tailored for the specific property transaction
- Attending the Tax Office to pay stamp duty on behalf of the purchaser
- Depositing the sales agreement at the District Land Registry for specific performance
- Assistance in applying for a permit to acquire property at the District Council
- Applying to the Tax Office for the reduced Value Added Tax (VAT) rate of 5%
- Assistance in transfer of title deeds