Below you can find information about getting mortgages in Cypus and the initial and ongoing costs of buying and owning a property in Cyprus. This information might not be complete so we always recommend that you seek proper advice from specialists.

Mortgage Possibilities and Conditions
All commercial banks in Cyprus have the ability to offer mortgages to prospective property buyers, be they foreigners or nationals.

Typical repayment periods are of around 15 years, and loans usually cover from 60 to 80 percent of the cost of the property. For EU residents the deposit amount is minimum 20 percent, although 25 and 30 percent is not unusual.

All banks also charge an arrangement fee, which is usually around 1% of the mortgage amount. This percentage can vary from bank to bank, so it’s advisable to look around for the best rates.

In order to qualify for a mortgage, you’ll have to prove that your income is sufficient to make the payments and that the property you’re purchasing is worth applying a mortgage to. Remember that cash will be needed for the deposit, legal fees, and other unexpected costs that may arise.

Note: at the time you register your contract at the Lands Office, you’ll have to declare your mortgage and register it as well. For this you’ll need to bring three copies of a Contract and Declaration of Mortgage (N271) and a title deed, as well as be able to prove that all taxes have been paid on the property. All of this processing is often included in lawyers’ legal fees and can be carried out by them.

Initial Costs of Buying Property in Cyprus
There are certain initial costs that you’ll have to pay for yourself, whether or not you’ll be getting a mortgage. Following is a list of extra costs you can expect to encounter when purchasing property in Cyrus (costs are approximate):

• 2,500€ for a reservation fee (paid to the developer or the estate agent once you’ve agreed on a property and payment terms).
• 0.75% of the purchase price in legal fees.
• 515€ in surveyor’s fees (price will vary by property).
• 0.15% of the purchase price in stamp duties.
• 260€ to apply for purchasing permission at the Council of Ministers (this service can often be performed by lawyers who include the service as part of their legal fees).
• 1% of the mortgage amount in mortgage fees.
• 5% value added tax (VAT) for first-time buyers; 15% VAT for all other buyers.
• Transfer fee (3% of the purchase price for the first 85,000€; 5% between 85,000€ and 170,000€; and 8% for any amount over 170,000€.

Annual Costs of Owning a Property in Cyprus
Some of the approximate annual costs of owning property in Cyprus include:

• Immovable Property Tax (IPT) – usually paid by the developer, although the relevant portion is charged to the purchaser (this amount can later be reclaimed in the immense majority of cases).
• Municipal Tax: 100€ / year – charged by the local government, covers charges such as refuse collection and street lighting.
• Annual Property Tax – strangely enough, most property is exempt from this tax because it only applies to property that was assessed at more than 170,00€ in 1980.
• Communal charges – applicable if you buy an apartment in a shared community; covers costs such as swimming pool, landscaped areas, recreational facilities, etc.