Rayhan Ahmed
Buying a property is a big deal of money. So, everyone should be careful before giving it a go because a small mistake may lead to larger quantities of loss. Here are five things to know to buy a seaside property in Cyprus. Let's check it out!
The Cypriot property market is small, but it doesn’t do things by halves. Compared to August last year, property sales are up by a massive 14%. Land Registry statistics show that people placed over 650 contracts in August this year. The cities are proving especially popular. Famagusta has seen a 48% increase in sales over the past eight months. In Nicosia, it’s 34%; in Limassol, 24% and Paphos, 15%. Expats are still feeling the pull of this sunny island, too. In August, 50% of contracts deposited were with EU citizens.
The Tax Department has a generous VAT reduction of 5% for property buyers, assuming you meet the criteria. This could be a crucial factor to thing about with your budget if you’re buying a home in Cyprus in.
The main criteria are to be above 18 years old and to intend to use the property as your main, principal residence. For most people, the Tax Office will apply the reduction to the first 200m2 of the property’s buildable areas. If you have more than four children, you’ll get a further 15m2 added to the 200m2 per child. After seven children, there are no reductions.
Cyprus is also seeing a boom in construction – great news if you’re looking to build instead of buying in Cyprus. Over the last year, new home permits have risen by almost 33%. The majority of them were in Limassol and Nicosia, suggesting these could be good areas to get swift planning permission. Back in 2017, land development skyrocketed island-wide. Paphos saw a 40% increase, while Limassol saw growth of almost 60%.
If it’s space you’re after, you’re in the right place. Surprisingly for a small island, Cypriot property is, on average, the largest in Europe.
The average new-build home in the UK is, according to Which?, 67.8m2. Although the figures aren’t divided by construction date for Cyprus, there is still a huge difference. The average over here is 142m2. That’s over double what you could get in the UK – often for less money. So, if you’re buying a seaside home in Cyprus, think big!
You may be thinking of buying a seaside home in Cyprus but not moving in until later. If so, renting’s a great way to make sure it earns its keep. However, there are different rules on whom you can rent to, depending on whether you’re a resident or not. Check them out in our article on Cypriot renting regulations.
