Buying Guide Details

Buying Property in Nicosia

Where to buy property in Nicosia

Nicosia is not often considered an overseas property destination, as this large region is rather arid and has little to recommend it as a potential property buying hotspot. However, Nicosia city is the capital of Cyprus and its largest urban centre, and as such it needs to be looked at in terms of its property investment potential.

It’s a divided city, due to its 16th-century wall that separates the old town from the new and the “Green Line” partition, established by the UN after the Turkish invasion in 1974 and cutting the city in two. It’s still considered the commercial heart of the country and is home to the headquarters of a number of international companies. There are a lot of expat workers in the city, but some of the Cypriots who moved to the outskirts following the arrival of Turkish troops are now starting to head back to the city centre.

Situated in the centre of the island, Nicosia will have limited appeal to foreign buyers, not just because it is a long way from the sea, but also because its climate is one of extreme dry heat in the summer and cold in the winter. While pedestrianisation has made the city easy to navigate on foot, traffic congestion is something of a problem. Tourism has never really taken off, since many visitors never venture far from the coast or the island’s more scenic areas.

Those who do want to buy property in Nicosia will find some excellent old properties in the Old Town – some may even have protected status, though the authorities tend to look favourably on sympathetic renovation plans – and more modern properties in the suburbs.

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The Process of Buying Property in Nicosia

When a property in Nicosia has been chosen, a buyer puts down a deposit of between £1,000 and £2,000. This represents a legally binding purchase agreement
Contracts are then drawn up, outlining the conditions of the sale, and at this point a further deposit of between 10 and 30% is payable (10% is usually paid for a resale property in Nicosia, and between 20 and 30% for a new-build property in Nicosia)
At this point the contracts are sent to the land registry and the buyer must make a written application to the Council of Ministers in Cyprus for approval to transfer ownership of the property in Nicosia into the buyer’s name. This is really only a formality (no-one from the UK has ever been denied approval), and you can live in your property in Nicosia while waiting for the approval to come through. Buyers need to present bank and character references with the application
The balance of the money is generally paid on completion for resales and in stages agreed by the developer for new-builds
All taxes are payable when approval is granted.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Health

The standard of Cypriot healthcare is generally very good, and English is widely spoken in hospitals and clinics. Visiting Brits will be given emergency treatment, but subsequent treatment will need to be paid for. Private healthcare is very reasonable and is probably the best choice for anyone spending a considerable amount of time there visa/residency issues.
Any EU citizen can stay for up to 90 days in Cyprus without a visa. Those wishing to spend longer will need a residence permit, which can be obtained from the local Cypriot authorities. This is a fairly straightforward process for anyone coming from an EU member state. That said, anyone wanting to stay permanently will need something called an Alien Registration Certificate. Proof of residence, funds and identity are required for this

Fees and taxes

Transfer tax in Cyprus varies between 3 and 8%, with additional stamp duty payable of up to 0.2% of the property’s purchase price
You will also need to budget for annual property taxes. These can be as much as up to 3.5% of the value of your property in Nicosia
In addition, allow between 1 and 2% for legal fees and anywhere between 3 and 10% for estate agents’ fees, although the norm is around 5%
Notarisation should cost around £1,350.

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