How Much Does It Cost To Buy A House In Cyprus
Article published in November 2021.
Property Pricing In Cyprus
Cyprus has been long known to have a flourishing real estate and property market since joining the EU in 2004. Foreigners have always been attracted to Cyprus because of the relatively low of property as opposed to other EU countries. It is still the same, although the prices of housing have increased over the years. Still, the pricing of property in Cyprus is about 40% lower than in Spain and 50% for France. Besides that, you can get low-cost homes and new properties at affordable prices.
Despite the prices of properties increasing rapidly since the last decade, you don't have to break the bank to get a good home. For as little as €100,000, you can get a nice old village home and €130,000 for modern homes. Semi-detached houses are valued at around €430,000 depending on the property location and this pricing is quite fair. People have different tastes and preferences. Therefore, you may need a home that is large and comes with a swimming pool. You could get this for about €600,000 depending on the location.
If you want to buy an apartment in Cyprus, you should consider the extra fees you have to pay. This includes legal fees, stamp duty fees, property tax, mortgage registration, transfer fees, and so on. They all amount to about 11% of the property purchase price so you should keep this in mind. You can also consider them as investments in case you will sell off the property. Then, you can include the costs to the property price.
Should You Buy A House In Cyprus?
You must be wondering why so many people, foreigners inclusive are buying property in Cyprus. Well, Cyprus has a beautiful climate, beaches, lots of entertainment, and more. Besides, so many people there speak English and it will be very easy to blend in. Here are a few reasons why you should buy a house in Cyprus:
- Great beaches and sunshine: There are several beaches out there where you can relax and enjoy the summer sun. This is very good if you travel to Cyprus for holiday purposes. You can take out time from work to chill by the seaside and enjoy the beautiful scenery.
- You will get value for your money: If you want to get value for your money, then buying a good home in Cyprus is a great idea.
- Lots of space: Cyprus has a lot of space for a small island. So, if you are looking for a home with plenty of outdoor space, you can get it.
- Varieties of food: You can try out varieties of foods and side dishes if you are visiting as a foreigner. One great reason for traveling to other places is to try out new foods. Cyprus has a wide variety of foods to enjoy.
- Skiing opportunities: If you love skiing or want to learn how to ski, Cyprus offers a good opportunity to do that. If you are traveling with family or friends, going on a skiing trip will help you all to bond more.
- Lots of itineraries: There are so many things to do in Cyprus if you are there as a tourist. You can attend several carnivals, shows, and visit many fun places.
Apart from buying property, many people go to Cyprus for tourism purposes. This is because there are so many activities to engage in and so many things to do. People visiting could lodge in a hotel or use home rental services. Most people visit every year and it becomes a good option to buy property solely for holiday purposes. But then, how much does it cost to buy a house in Cyprus? This is the question in the minds of many and whether it is profitable to do so. This article will cover how much it costs to buy property in Cyprus. Read on!
Consideration Before Buying Property In Cyprus
Before talking about the pricing, you need to consider certain things before buying property in Cyprus. There's a lot to think about so you should take your time to do it.
- Purpose Of Buying The House:
You should first ask yourself why you are buying property in Cyprus. Doing this can direct you to the type of property to buy. Are you buying property to use as a holiday home? Is it for investment purposes? Is it for adventure purposes?. Note down why you want to buy the house and move on with it
- How You Will Use The House:
Asking yourself this question will help you use your house to the fullest. Are you going to use your house for vacation, relocation, investment, or spending long weekends? How you will use your house can be a determinant for your area choice.
- What Your Home Must Have:
As aforementioned, everyone has tastes and preferences. Therefore, you will ask yourself what your home in Cyprus must-have. This includes the number of bedrooms, a swimming pool, outdoor space, close to the beach, close to a bar, garden, terrace, and so on.
- The Cost Of The Property/ How Much You Can Afford
This is a very important factor to consider before buying property in Cyprus. You need to know the cost of the property you want to buy and how much you have in your budget. Knowing how much you can afford will help you look for houses in that price range. Don't forget to budget 12% extra for additional fees mentioned earlier.
- Location Of The Property
Cyprus definitely has a home for all tastes and preferences. Whether it is a holiday home, for relocation, or a retirement home, Cyprus has a home for you. There are different cities and regions so you might want to take out time to consider the location you want to buy the property. You can buy houses in Paphos, Ayia Napa, Limassol, Troodos Mountain, Nicosia, Larnaca, and more.
Cost Of Buying A House In Cyprus
You don't need to break the bank or spend a fortune before you can buy a house in Cyprus. The price of buying an apartment per square meter that costs about €1660 in Cyprus may be up to €5300 in places like Madrid. Although the price of housing in Cyprus has been increasing rapidly over the years, it is still affordable. The cost of buying old village homes is about €150,000. You can also get modern houses for about €100,000 depending on the property location. For detached villas, they could range around €245,000 depending on the location.
Of course, location plays a huge role in the price of houses in Cyprus. A house located around the rural areas can never be the same price as a house located in the city center. If your house is easily commutable, close to the beach, close to resort areas, and more, it could cost higher. This is why houses in Paphos and Limassol cost higher than in other places. Also, what you need in the house will add to the cost. If you are seeking to buy a house with a swimming pool, it would cost from €600,000 depending on the location.
Cost of buying a house in:
- Famagusta: You should budget around €100,000 to €350,000.
- Larnaca: You should budget around €185,000 to €300,000.
- Limassol: You should budget around €120,000 to €400,000.
- Nicosia: You should budget around €100,000 to €340,000.
- Paphos: You should budget around €150,000 to €500,000.
The cost of living in Cyprus is relatively low compared to other European countries. This is probably why they have been thriving in recent times as regards real estate. Also, Cyprus doesn't use a notarized system of property transfer, so there are no added fees. For properties put up for resale, there is no transfer tax incurred. Usually, the rate for property over €170,000 is 8% but it is discounted at the moment. There are so many financial benefits that come with buying a house in Cyprus. Since the prices are not that high, you can buy a studio apartment for as low as €30,000. If you don't have an inheritance tax on your property, you will get great tax benefits.
Legal Fees For Buying A House In Cyprus
It is highly advisable to get a professional lawyer when buying a house in Cyprus. This is because the lawyer will guide you all through the proceedings and also stand in for you just in case you are not available when needed. The lawyer will also ensure the progress of the property purchase while also protecting your best interests. A lot of people may overlook the importance of getting a lawyer and paying legal fees but it helps. You may have issues along the line and you will need your lawyer to deal with those problems properly. In essence, a lawyer will make sure that your property purchase in Cyprus is legitimate and is carried out safely.
The legal fees should be budgeted for alongside other extra costs. Put together, they are the total spend for the cost of a house. The legal fee is usually a percentage of the original house price, which could be 1 or 2 percent. The lawyer's services include:
- Drawing up contracts
- Checking building permit
- Applying for permission to buy a house from the Council of Ministers
- Checking that everything is legitimate
- Searching with the Lands Office
- Registering and stamping contracts.
You certainly can't do all these by yourself especially if it is a new experience for you. You need an experienced person to guide and put you through.
Budgeting To Buy A House In Cyprus
If you want to buy a house in Cyprus and you only set aside the money for the original house price, you may not claim ownership of the property. This is because there are several other fees to pay and if you don't plan well, you may hit a dead end. In essence, you should budget properly for your house. If you are a foreigner, you need to get permission from the Council of Ministers before you can be allowed to buy a house. If you do it without permission, it is considered illegal.
Budgeting properly for buying a home in Cyprus means noting down the costs of everything you will pay for including the property price. You will pay other fees and taxes before you can be said to be the rightful owner of the house. To get this right, you should set aside about 12% of the original house price to cover any outstanding cost. And so, the key financial points to consider are:
- Available Funds:
Know the total amount of money you have available to buy your house. This is very important when buying a house in Cyprus. It could include money in your bank account, savings, investments, cash, properties you can sell, and so on. You can also consider buying the house with a family member or a friend if it applies to you.
- Additional Funds:
Some people may decide to buy their house with a mortgage. If you are this person, you can talk to an estate agent, bank, or any other lend to check your options. You will let them know how much deposit you need and how you will be able to pay it back. You will also discuss with them the rate at which you will make payments, whether it is monthly or every two months. You will also let them know how you intend to pay back in case there's an emergency such as unemployment.
- Ongoing Funds
These are the extra costs that come up while purchasing your house and even after the purchase. They include maintenance and so on.
In all, buying a house in Cyprus is a good investment no matter how high or how low the price is. The good thing to do is to look for a house in a good area within your budget and purchase it. You will be happy you did!