How much does it cost to sell a property in Cyprus?
When you know what's going on with the sale of your property in Cyprus, it may make the process lot less stressful.
You don't need us to tell you that the present market is extremely difficult for sellers to navigate. Unfortunately, only the greatest and most reasonably priced houses will find buyers in today's market.
The vast majority of properties placed on the market will not sell unless they are presented in accordance with the fundamental rules of real estate. Sellers that use mediocre services or who pay up-front costs are almost always doomed from the beginning.
Remember, the days of individuals buying property from taxi drivers are over, and any company involved in the marketing of property in Cyprus must have worldwide exposure in order to be successful.
Please see below for our sale timeline, which also contains some Top Tips to ensure that your home has the best possible opportunity of selling.
Cost of Selling Property in Cyprus
Capital Gains Tax
The profit gained on the sale of a property is subject to capital gains tax, which is levied at the rate of 20 percent.
There is a single lifetime allowance of the first €17,086 in profits that is exempt for each seller, and this limit cannot be utilized up until the allowance is exhausted. This is applicable to Cyprus nationals only.
For the purpose of calculating the taxable profit, certain expenditures, in addition to the costs incurred in the acquisition of the property (the buy price), are deducted from the sale price of the property.
There are a number of costs involved in transferring the property into the buyer’s name, including the transfer fees as well as certain costs associated with improving the property (such as structural changes, installing central heating, and the fees of a real estate agent who is duly registered (in Cyprus).
Costs associated with providing the buyer the relevant paperwork
In most cases, a seller of real estate will be required to offer the following items to a buyer:
- Land Registry Search (for mortgages or other charges): ranges from €10 to €50, depending on the complexity of the search.
- Copies of architectural and site plans, as well as past contracts, are available from the Land Registry for a fee ranging from €5 to €40.
- The cost of registering a general power of attorney is €50.
- The aforementioned energy certificate.
The settlement of debts, payment of utilities, and taxes
When selling a property, it is necessary to pay off any outstanding obligations, utilities, and taxes that may have accrued.
In this case, the sum owing to the developer of the property, any balance due to the management committee for communal expenditures, and amounts due to the authorities for water, electricity, trash collection are all examples of debts that can be paid by a mortgage on the property.
Fees for Professional Services & Consultations
The expenses of an estate agent and a lawyer are the most commonly encountered. A fee of 5 percent plus value-added tax (V.A.T.) is presently set for fees charged by registered and regulated real estate brokers.
Legal costs for real estate transactions are normally agreed upon between the seller and the lawyer, and they are typically for a set sum of money.
In addition, the legislation requires that sellers provide the buyer with an energy certificate for the property that is being purchased. The cost of this varies between €50 and €500 per person.
10 Steps To Sell Property in Cyprus
Determine an accurate and honest value
We do not charge any upfront marketing fees, and our goal is to sell your home for the highest potential price in the shortest amount of time feasible.
The fact that we sell quickly and at on average 8% higher price homes in the Paphos, Cyprus region than any other estate agent demonstrates that we have up-to-date knowledge of the local market in your neighborhood.
Notify a lawyer of your intent to sell your home and property
The efficiency with which your lawyer handles the sale of your home may have an impact on the final price of your property. No one (and certainly not you) will desire a lawyer who is late in responding to queries or who is obstructive in any way. Whether you speak English or Russian, there are expert lawyers who can assist you in your language.
In the event that you are planning to leave Cyprus for an extended period of time or are permanently residing in another country, please organize a power of attorney (POA) with your lawyer so that you have a legal representative to complete your transaction without delay.
Put your property on the market to sell it. Is it being presented in the best possible light?
It will take some time to get your property ready for sale. Consider a fresh coat of paint and a thorough cleaning of the garden and outside areas.
It may sound apparent, but if your living room is being utilized as a storage space for a patio and poolside furniture, it will appear significantly less inviting. Reduce the number of ornaments, personal photos, and portraits on display to a bare minimum.
Things you don't use might be given to friends or donated to charitable organizations. Allow yourself plenty of time to clear and prepare the property before moving in. Make certain that it is in its finest possible condition before displaying it to the public.
Promotion - Select the most qualified organization the first time
In the process of selling your home, an essential decision you will make is which firm will market your property. Select a real estate agent who has a demonstrated track record of success in selling property in your neighbourhood.
Keep in mind that in order to sell your home, it will need to be promoted outside of Cyprus. The full-scale marketing and advertising of your property for overseas clients is something that we feel no one else can do better than us.
To those who entrust us with the marketing of their home, we give personalized care and go the additional mile to ensure their satisfaction.
Remember, it's never too late to start over, so if your property hasn't sold yet, go back and look at the Price, the Presentation, and the Promotion again to see what went wrong.
Viewings - Confirm that your property is available for viewing
Please ensure that your property can be visited for a showing at any time of the day or night, including weekends. The majority of purchasers prefer to inspect a home without the presence of the owners.
According to research, buyers spend more than half as much time in a house when the owner is not in the room with them. Leaving keys with neighbours and requesting that they be there for every viewing is not an ideal solution.
Because a large number of prospective purchasers will only be able to visit the house during the weekend, this favor from a friend may prove to be quite troublesome. It's important to remember that if you don't have assured access to the property, you may lose out on the sale.
Even though it may seem apparent, if your property is not accessible, it cannot be sold; thus, please notify us if you want to leave the island or are out of the country for an extended period of time.
You may wish to "hedge" your bets by renting out your property while it is on the market but be warned that this can result in a slew of problems.
Renters are generally unconcerned about whether you sell or not, and in some cases, your tenant may go out of their way to ensure that you do not sell what they perceive to be their home.
Acceptance of an Offer.
As soon as an offer is made on your Cyprus property, you will be notified both orally and in writing of the offer. During this step, it will be necessary to address any unique conditions that may be associated with the offer.
Reservation Agreement
Non-refundable reservation payment will be paid once a price has been negotiated in order to cover the gap between agreeing to purchase the property and entering into a Contract of Sale. This agreement is signed by both the buyer and the seller, and it is typically valid for one month.
Preparing the Sale Contract
Your lawyer will enter into a contract of sale for the agreed-upon amount, which will be specified in the reservation agreement with the buyer.
Normally, a deposit of 20 percent to 50 percent of the purchase price is required at the time of signing this agreement. The contract of sale will contain all of the terms of the transaction, which will be detailed in the contract of sale.
Completion
A deadline has been established for completion. Your lawyer will be required to give a Tax Clearance Certificate to demonstrate that all taxes and any outstanding bills have been paid in whole and on time.
At the Land Registry Department, both lawyers will meet to finalize the transaction. Any remaining funds will be paid to their respective clients' attorneys, and the title deeds or contract will be given to the new owner.
Author: Christos Nikolaou
BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “How much does it cost to sell a property in Cyprus?” and is a certified advance negotiator.
