Frequently Asked Questions Affecting the Real Estate Market in Cyprus (FAQs)

Our clients ask and SkyPrime Group replies!
Some of the most frequently asked questions in real estate business in Cyprus:
 
Client: Will I have to pay the VAT for plots/land in Cyprus, and how much is the current rate?
SkyPrime Group: There is not a straight forward answer to this question yet. In most cases when buying a plot/land in Cyprus you must pay VAT. There are some exceptions, usually when the seller is a private owner and he/she didn’t sell any other piece of land in the past and the buyer is buying the land for personal use for his/her personal residence then most probably the transaction might not have VAT.
 
Client: Will I have to pay the VAT if I acquire old properties?
SkyPrime Group: No. We never pay VAT on old/used properties. If a property is currently rented or people lived in it in he past, it is considered used and there is no VAT payable by the buyer.
 
Client: How can I set the best price for the property I am about to sell?
SkyPrime Group: You must find other similar properties that were sold in your area (at least 2-3 of them) within the last 6 months, then find how much they were sold per square meter and finally, using this information, calculate the value of your property per square meter.
 
Client: Will I have to pay the VAT for the acquisition of newly build properties?
SkyPrime Group: Yes. Always when a property is sold for the first time by the developer/construction company, the purchaser must pay the VAT. It usually comes to 19% of the purchase price.
 
Client: Who will list or advertise the property I wish to rent or sell?
SkyPrime Group: Your property will be listed on our company’s website.
 
Client: Which are the best areas for investment in real estate in Cyprus and why?
SkyPrime Group: This depends on the kind of investment and the kind of real estate. Do you plan on selling the property, or rentng it? Are you planning to purchase a residential, or a commercial property? In general, Limassol and Ayia Napa are the areas with the highest development, offering the best value and these are the areas you should primarily look to invest in.
 
Client: How can I make my property more attractive to potential buyers?
SkyPrime Group: During the time you have your property in the market, it must always be maintained in good condition and of course always be clean and tidy. Even small maintenance issues can cause potential buyers to lose their interest in the property.
 
If you have any other questions please do not hesitate to contact us by email or phone.

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Date published: July 8, 2019