Supporting buyers and sellers through the necessary fees surrounding property transactions
Are you a first-time buyer looking to invest in real estate in Cyprus? Rental yields provide landlords with an attractive return on investment, increasing revenue through passive income. However, while buying a property may sound a simple process, it can incur unforeseen costs. Helping our clients to understand and stay ahead of these hidden expenses and unexpected fees is indeed part of what we do here at REInvest. In fact, our team of expert real estate professionals provide a variety of specialist property consultancy services, as well as local know-how and market expertise. Which in turn, stands investors in good stead as they embark on this journey.
Our highly experienced consultants advise investors to get a real understanding of all costs involved in purchasing a property before they start house hunting. After all, it is essential to set a realistic budget based on a holistic assessment of all expected costs, prior to committing to a purchase. To begin with, most prospective buyers will be familiar with the big-ticket expenses, such as mortgage payments and property taxes. However, many may not be as aware of some of the smaller, less-known expenses, such as title deed issuance and tax clearance services.
Perhaps you are a seller? Similarly, there are a range of different costs, expenses, and VAT obligations to consider before starting the process. For example, many sellers are not aware that under certain circumstances they may be eligible for a waiving of the VAT obligations for their land, plot, field, or property. Thus, to help both buyers and sellers to navigate these unanticipated expenses, your real estate advisors at REInvest have gathered all the necessary cost information, to help you understand all associated cost and prevent any unforeseen surprises that might affect your finances.
So, read on to learn about the costs of buying and selling a property:
What Fees do Sellers Pay When Selling Real Estate?
Pre-acquisition expenses include:
- Land Regisry (LR) search (property encumbrances)
- Energy Performance Certificate (EPC) issuance – In case of resale an EPC may need to be issued
- Tax clearance
- Municipality taxes
- Sewage fees
What Fees do Buyers Pay When Investing in Real Estate?
Pre-acquisition expenses include:
- Due diligence fees for the negotiated due diligence time period when the buyer can appraise and inspect the property, carry out property surveys and obtain loan approvals (Due diligence time covers economic, legal and technical facets)
- Topographical survey (if necessary), to provide the buyer with a valuable 3D depiction of the property or land, which includes data regarding the lot’s physical features
- A lawyer (if necessary)
Expenses upon acquisition include:
- VAT is applicable if the planning zone is residential, touristic or commercial (Agricultural zones don’t apply), or for newly built and unused properties. The owner needs to be advised by the VAT authorities regarding whether the property is subject to VAT
- Stamp duty
- Issuing of title deeds
- Transfer fees
- If the property is subject to VAT, then the transfer fees are zero
- 50% discount on transfer fees if the property is not subject to VAT
- Transfer fees are always subject to the valuation of the Land Registry
How can REInvest Help to Smoothen Transaction Process?
Now that you are more aware of the extra costs that apply to property transactions, let’s look at how REInvest’s team of professionals can help to ensure the smooth and successful purchase or sale of your property. As a Leading Real Estate Agency in Cyprus since 1980, REInvest provides expert consultation to guide you through the whole process of buying or selling a property.
Our extensive list of services includes Property Management and Project Management, meaning REInvest can check with the authorities regarding whether the property is subject to VAT, as well as inform clients of any incentives and grants currently in force, that buyers and sellers may be eligible for. Furthermore, REInvest, can advise you on ways to minimise your legal and administrative fees, such as reduced VAT, housing schemes, special development lands, local area plans such as the recently issued SBA (Sovereign Bases Area) and transfer fees.
Prospective buyers and sellers can also take advantage of the special packages we offer to our clients. To find out more, visit our website è reinvest.com.cy/list. For any further inquiries, feel free to call our experts at +357 22 477600 or 77 78 77 71, or email us at [email protected]