Not sure where to start with how to sell property in Cyprus? Luckily, with a firm real estate industry and more property development projects added daily, Cyprus has a vibrant culture and EU membership benefits that make the country one of the best places to market to potential buyers.
Learn how to sell property in Cyprus with Property Experts Cyprus and achieve a sale as sunny as this golden Mediterranean destination. Find out about the real estate market, tips for preparing your property, the process of sales, and other important information to know about when deciding to sell.
Cyprus Real Estate Market Outlook
The initial first step when researching how to sell property in Cyprus is determining the right time to begin the process. Luckily, the real estate market in the country continues to remain strong despite the global challenges of the pandemic.
While those before beginning the process. This includes understanding the order of events, determining a listing price as well as how to sell property in Cyprus with a good working knowledge of the additional associated costs.
Hiring a professional real estate agent can streamline this process and ensure that all the details of the sale are in order for everyone involved.
A Look at the Process
- Work with licensed real estate agents for an accurate property valuation and establish a Power of Attorney to determine how to sell property in Cyprus per local regulations
- Update your property for the intent to sell
- Determine the appropriate presentation and advertising platforms then schedule accessible viewing appointments
- Receive an offer, both orally and written
- Accept the offer by establishing a price and special conditions
- Receive a non-refundable deposit for reservation usually 20-30% of the property value, beginning the Contract of Sale
- Set the Contract of Sale with the lawyer
- Sit back as your lawyer provides a Tax clearance certificate and meets at the Land Registry department with the other party’s lawyer to complete payments, title deeds, and other transfer transactions
But how to find the perfect selling price?
Deciding the Listing Price
Ultimately, selling a property will come down to how much money potential buyers are willing to pay. However, a seller can get a good idea of the amount of cash earned after the sale is complete by deducting the rough expenditures of:
- Agent fees
- Payment of outstanding loans
- Solicitors fees
- Prepayment penalties due on the mortgage
- Capital Gains Tax
- Remaining unpaid property tax
Understanding the Costs Associated with Selling a Property
Beyond the expenses associated with advertising a property and working with a real estate agent, Cyprus has some tax policies for deciding to sell your property.
The largest of these is the Capital Gains tax which is quoted at a fixed rate of 20%. This is calculated on the gains from the disposal of immovable property in Cyprus, subtracting the original cost and additional expenses from the proceeds of the sale. Both inflation and allowable expenses are also factored into the final amount of taxable gains.
Many exceptions apply, with the two biggest of these being an exception of 17,086 Euros on the first-lifetime sale of individuals and an exception of 85,430 Euros on the sale of the main residence pending qualifying conditions.
In Cyprus, the purchaser is usually required to pay the Transfer fees and stamp duty on the property. Moreover, there is no Immovable Property Tax at the federal level, although a small fee may be levied municipally. As of February 2021, a new .4% tax on the sales of immovable property will be imposed to support Greek Cypriot refugees and paid by the seller, rather than the purchaser.
In addition, it is important to have the title deed for the property in order when working with a licensed real estate agent. A title deed is necessary for selling the property and the process will be much more complicated without it.
Seeking professional consultation on the financial costs you can expect to spend in comparison to how much you will potentially make from a sale can help you decide the best approach on how to sell property in Cyprus.
Achieve a Sale
Understanding the basics of preparing for how to sell property in Cyprus can make all the difference in achieving a stress-free and smooth process. Moreover, marketing real estate as well as the benefits of the Cyprus lifestyle is one of the most significant aspects of getting your property sold quickly with your ideal price tag.
Property Experts Cyprus has experience helping locals and foreigners buy and sell an array of different types of real estate. Contact our team of licensed realtors to learn more about how to sell property in Cyprus with the most financial success and the least hassle. With us, you can have peace of mind that your real estate sale is completed correctly, professionally, and in record time.