To buy real estate in Cyprus, you need to make an advance payment, usually amounting to 10-20% of the value of the object, and then make full payment according to the terms of the contract. If you want to get a residence permit, the value of the property must be at least 300 thousand euros. You will also need to provide some documents (proof of purchase of the property, proof of financial solvency, certificate of no criminal record and medical insurance). To maintain a permanent residence permit you must reside in Cyprus for at least 60 days a year and not be a tax resident of another country.

When buying a primary property in Cyprus, you should consider the following taxes and fees:

• VAT is 19% but can be reduced to 5% for first homes.
• Stamp duty rate is 0.2% of the value of real estate over 170 thousand euros. Stamp duty is not levied on the first 5 thousand euros of the value of housing.
• The registration fee depends on the value of the property. But buyers of primary properties in Cyprus, which are subject to VAT, are exempt from paying the registration fee (Transfer Fee). So, if you buy a property that is subject to VAT, you will not pay the Transfer Fee.
• Legal fees are typically 1-2% of the property value.

The following tax liabilities arise from renting out property in Cyprus:

• Personal Income Tax: Rental income is subject to progressive tax at rates ranging from 0% to 35%, depending on the total annual income. Reliefs and deductions may be applied, reducing the taxable base.
• Defense Tax: A special defense tax applies for tax residents of Cyprus, which is 3% of rental income on residential property.
• VAT: Normally the rental of residential property is exempt from VAT, however if the property is used for commercial purposes, the landlord may be required to register for VAT and pay VAT on the rent.
• Community fee: Depending on the location of the property and the services provided, a special fee may be charged.
• Social contributions: If a landlord carries out the activity of renting out real estate as an entrepreneur, he may be obliged to pay social contributions.

Yes, Cyprus has a capital gains tax on the sale of real estate. It amounts to 20% of the gain realized on the sale. However, there are certain exemptions and reliefs that can reduce the amount of taxable income, such as the exemption for first residential property.

There are a number of legal and procedural steps to follow when buying real estate in Cyprus:

• Select a property. Start by finding and selecting the right property. You can contact real estate agents or use online platforms to find options.
• Preliminary Agreement. After selecting a property, draw up a preliminary agreement with the seller. This usually involves making a deposit to reserve the property.
• Legal Due Diligence SPM has qualified lawyers to review documents for the legal status of real estate, debts and encumbrances. Our experts will verify the title of the property and ensure the legality of the transaction.
• Signing of the sales contract. After successful due diligence, the parties sign the final sales contract. This contract must be registered with the Department of Land Resources.
• Payment and registration. Make payment according to the terms of the contract. After payment, the property is registered in your name at the land registry, which confirms your ownership.
• Tax obligations. Pay all necessary taxes and duties such as stamp duty and VAT (if applicable). It is also worth considering property insurance to protect against possible risks.
• Titling: After completing all formalities and registration, you will receive a title deed, which confirms your right to own the property.

Prospects for growth in real estate prices in Cyprus in the coming years remain positive. Experts predict further growth in the cost of housing due to the steady demand from both locals and foreign buyers.

For inheritance in Cyprus, it is important to make a will with a notary, which simplifies the process of transferring the property, as there is no inheritance tax. The procedure includes contacting a lawyer, providing a death certificate and registering with the land registry. Foreign citizens can inherit without restrictions. Non-residents may need additional procedures. The management of the real estate until the inheritance is finalized may be transferred to a temporary administrator or one of the heirs.

The political and economic stability of Cyprus creates confidence among investors and provides a favorable environment for real estate investments. Cyprus' membership in the European Union guarantees high standards of legal protection, which reduces risks for investors. Sustainable economic growth supported by tourism, financial services and real estate contributes to increased demand for real estate and rising prices. Favorable tax conditions and infrastructure development further stimulate interest in real estate investment in Cyprus.

The area of the complex provides various opportunities for children. Near the swimming pool there is a playground where children can enjoy games and active pastime. In addition, there are educational institutions, sports sections and cultural circles within walking distance, which contributes to the all-round development of children and ensures comfortable living for the whole family.

When investing in real estate in Cyprus, security and risk management measures should be considered. You should carry out due diligence on the property and engage a qualified lawyer. Insurance should also be taken out to protect against risks. It is important to invest in areas with good infrastructure and growth prospects. Regular market analysis will allow you to understand current trends and choose the best time for transactions. Diversification of the portfolio by investing in different objects will help to reduce risks. If necessary, you should conclude an agreement with a management company for effective management and lease of real estate.