Property search:
Buying Process

1. VISITING US – INSPECTION TRIPS

Having seen a specific property you liked or a project you find interesting, either through our website or through any other source, you can easily contact us directly and simply express your intention of visiting us. KANIKA offers you the opportunity of staying in our hotel, 'ELIAS BEACH HOTEL', that is situated in the city of Limassol for 3 days, with discounted rates in order to give us the chance of getting to meeting you in person, show to you our properties and of course socialize with you and your family around the city. We also arrange for your transportation from and to the airport free of charge. In case of a positive ending and a purchase of a property from us, your whole accommodation bill will be fully covered by us as a gesture of gratitude for choosing KANIKA as your home provider. 


2. VIEWING OF OUR PROPERTIES

While you are with us, it would be our pleasure to drive you around all our projects and show you the broad variety of properties that KANIKA has to offer for your consideration. Rest assured that our sales team would be ready to meet with you at a place of your convenience and safely give you a tour of our projects so that you feel ready to make your decision. We will do our best to give answers to all the questions you may have for any matter.

3. CONTRACTING

Upon deciding on the property that fits your criteria, the corresponding contracts of sale must be prepared and signed by both the buyer and KANIKA. Our team is ready to produce the set of contracts and any other legal document required to conclude the sale straight away. Usually, 4 original contracts of sale must be produced:

a. 1 contract of sale for the buyer
b. 1 contract of sale for the vendor, which is KANIKA
c. 1 contract of sale goes for the bank (if a housing loan is required)
d. 1 contract of sale is deposited to the District Land Registry


In order for the set of contracts to be prepared, the buyer has to first pay a reservation fee, which is usually at least 2% of the agreed price of the property. For example, if a property's agreed sale price is €250,000 then the corresponding reservation fee should be at least €5,000. This enables KANIKA to reserve the specific property under the name of the prospective buyer and to basically withdraw that property from the market for a period of 2 weeks.

4. PAYMENT TERMS

KANIKA will make everything to make the payment process smooth and plausible for you. We only have one preset condition: we deliver the key after the property is fully paid. Other than that, we are more than happy to agree on a flexible payment stream, which will be structured based on the following factors:

a. Source of funds: Either personal or through a housing loan
b. Status of the property: Ready, under construction or off-plan

After the reservation fee is paid, the buyer has to cover the 30% of the agreed selling price of the property within 1 month from the day the contracts of sale have been signed. After this is done, the contracts of sale can be legalized and one of them then is deposited at the District Land Registry. Also , in case the funds come from a housing loan, after the payment of the 30% of the agreed selling price, the bank (upon approval of the housing loan) can then provide the remaining 70%, based on the "7:10 Loan-To -Value ratio " currently used by our local banks for non-residents who buy a property with the purpose of it being used as a 1st residence or a holiday home.

When a property is under construction or off-plan, then the payments are made according to the construction stage of the property and the settlement of the balance comes with the delivery of the property to the buyer. So the payments may occur in several stages, depending on the time needed for the property to be built and delivered.

When a property is ready and can be delivered right away, having the 30% paid, the buyer can then proceed to its full settlement by paying the remaining 70% and acquire the property at once. This of course depends on how soon the buyer wants to acquire the property.

IMPORTANT NOTES

The costs of legalizing the contracts of sale as well as the deposit of one of them at the District Land Registry are payable by the buyer. KANIKA however will undertake this procedure on the buyer's behalf. The stamp duties are calculated as follows and are based on the selling price of the property:

• Up to €170,860: 1.5‰
• Above €170,861: 2‰

Once one of the contracts of sale is deposited at the District Land Registry, there will be a yellow slip issued by the corresponding authorities, which basically confirms the registration number of the specific contract of sale and the name of its buyer/owner. This yellow slip proves that the specific property is registered on the name of the specific buyer and safeguards it from any other form of deed.

When the title deed of a property is issued, in order for the property to be transferred onto the name of the buyer, the following charges apply depending on the price of the property at the time of its purchase:

• Up to €85,430: 3%
• €85,431 – €170,860: 5%
• Over €170,861: 8%

Hint: The more buyers are included in a contract of sale, the less transfer fees are being charged. For example, if 2 persons are jointly set as the buyers in a contract of sale, then the transfer fees are charged in half; if the joint buyers are 3, then the transfer fees are ⅓ and so on.

The registered owner of a property is also liable for the following immovable property taxes and fees:

• Immovable property ownership tax
• Local authorities fees
• Municipality tax
• Sewerage tax


The charges are paid annually and are based on the following proportions, which by law are applied on the estimated market value of the purchased property as at 1/1/1980:

• Up to €120,000: 0‰
• €120,001 – €170,000: 4‰
• €170,001 – €300,000: 5‰
• €300,001 – €500,000: 6‰
• €500,001 – €800,000: 7‰
• Above €800,001: 8‰

A permanent resident of Cyprus is considered a person who has been living in the island for a consecutive period of minimum 5 years (utility bills can easily prove this).

A national of an EU-member country is permitted to acquire as much "immovable property" (both land and property) as they wish. If these nationals are residents of Cyprus, then there is no procedure they have to follow to acquire a property. If they are not residents of Cyprus, then they have to follow the same procedure as the nationals of non EU-member countries, which is explained below.

A national of a non EU-member country must seek the approval of the Council of Ministers before they can own any form of immovable property. Only 1 immovable property can be acquired for non EU-member nationals. This procedure is initiated at the time when the contracts of sale are being signed and usually takes around 6 months to be officially concluded. The costs of this procedure is payable by the buyer but KANIKA can recommend a lawyer (obligatory by law) who will undertake this procedure on the buyer's behalf. In the meantime, the contract of sale can be legalized and deposited at the District Land Registry for "Specific Performance" while the application is being evaluated.

The normal Value Added Tax (VAT) rate is 18%. Specifically for EU-residents who buy a property with the purpose of it being used as their 1st residence or a holiday home, the VAT rate is 5%. There are also certain properties that are VAT exempted, where no VAT is applied.

In case a housing loan is needed, KANIKA will assist you (without any charge) from the beginning of the procedure until the end. By utilizing both our long and professional relationship with the biggest financial institutions of the island as well as our experienced team, we will provide you with all the details you need to know and we will proceed step-by-step so that we secure the housing loan that is needed to conclude the deed.

In general, consider the following basic information:

Currency: Mainly Euro but other currencies can be chosen as well • Duration: 10 – 40 years but the 70th year of age is set as the upper limit • Schemes: Both with fixed and variable interest rates • Type of Euribor and Libor used: 6-month