What is important to consider when buying land in Cyprus: our recommendations

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Purchasing plots of land in Cyprus is a significant investment that requires careful consideration and preparation. And whether you are planning to build a house in Cyprus for personal use, build several small apartment buildings or invest in a site for future development with a high return on investment (ROI), it is necessary to carefully study the market, taking into account both current trends, and the prospects for the development of a particular region.

This will help you make informed decisions, maximize your potential income and ensure sustainable growth in your investment portfolio.

In this article we will look at the key aspects that should be taken into account when buying land in Cyprus.

Key Aspects When Choosing a Plot of Land for Construction in Cyprus

The process of purchasing land in Cyprus involves several stages, starting with a detailed market analysis and selection of a suitable plot, followed by the completion of all necessary documents and permits.

1.Detailed check

Once you have selected a potential site, begin a comprehensive detailed due diligence process that includes various aspects:

Legal aspects: make sure that the site has legal title, free of any legal encumbrances or disputes.
Location assessment: Assess the infrastructure, surroundings and suitability of the site for residential or commercial purposes.
Site Boundaries and Shape: Check the site boundaries and ensure that the site shape meets your project requirements.
Building Density: The maximum number of square meters you are allowed to build, expressed as a percentage of the land area. It often happens that the plot of land itself looks attractive, but the development rate is only a few percent of the total area of the plot. This restriction may not be sufficient to implement the desired construction project, and the buyer faces restrictions in implementing his construction plans.
Access and roads: check for registered access roads to the site.
Green areas and soil quality: Ensure that there are no restrictions due to green areas and evaluate the quality of the soil for construction purposes.
Permissible height and number of floors: restrictions in this context can influence the architectural possibilities of the future structure. It is important to consider that even if the characteristics of the site itself are attractive, compliance with these restrictions can significantly affect the planned design and functionality of the building.

At this stage, it is critical to obtain reports from all stakeholders before making financial commitments.

2. Determining the cost and intrinsic value of land in Cyprus

The valuation of land in Cyprus includes various factors:

Proximity to urban centers.
Size and zoning of the plot, which determine its potential uses.
Terrain and access to transportation links significantly impact the convenience and accessibility of the plot. Plots with well-developed transportation infrastructure and easy access to major highways are often valued higher due to the convenience for residents and various exploitation possibilities.
Proximity to essential services, such as schools, medical facilities, and commercial establishments, which also increases the plot’s value.

These elements, along with additional costs such as taxes, legal fees, and agency fees, determine the total investment costs.

3. Financial feasibility and planning

Before making any payments, understand the financial feasibility and viability of your project. Determine the allowable building size (in square meters), number of floors, and development scope. Additionally, it is important to assess the potential return on investment (ROI) to ensure the economic justification and expected returns of your investment.

4. Completion of the transaction

You should carefully review your purchase agreement and discuss any uncertainties with your Cypriot lawyer before signing it. This includes the terms of the deal, obligations of the parties, timelines for completion, and payment conditions. The transaction will then be registered with the Land Registry, where you will receive documents confirming your ownership. These documents are crucial for protecting your legal status as the owner of the land and ensure legal protection of your property in the future.

5. Next steps

Company registration and bank account opening: our Cypriot lawyer will assist in company registration and bank account opening for the project.
Capital Transfer: Transfer the required capital to your company to start the project.
Architectural process and obtaining permits: a team of architects will prepare all the necessary documentation, advise you and submit your project for building and planning permits. They will also create 3D models of the project’s development.
Sales and marketing: if your plans include the sale of built real estate, begin to develop a marketing and sales strategy to successfully promote the property on the market.

By following these steps and turning to experts, you can go through the process of buying land in Cyprus smoothly, ensuring a successful investment.

If you want to purchase land for development in Cyprus, our offers cover various regions of Cyprus, including Paphos, Limassol, and Larnaca, and are ideal for those looking for plots of land for construction.

OUR SERVICES:

1. Search for land plots with building permission

2. Thorough check of the legal status of the selected site

3. Participation in the process of buying and selling land

4. Providing legal support for registering a construction business in Cyprus

5. Construction process management: coordination and effective management of all stages of the project

LEGAL SERVICES IN CYPRUS

Article author

Elena Georghiou Founder and Managing Director
Ukraine

Elena Georghiou – Founder and Managing Director of Feod Group. Has two higher educations: the first at the Odessa State Polytechnic University, majoring in automation and computer engineering (1986) and second in the Moscow State Law Academy, majoring in law (1991). Has work experience in London immigration law firms. Is a regular participant in seminars and trainings on immigration, corporate and private law of the European Union. Elena Georghiou has more than 25 years of legal experience and heads the specialized Residency and Citizenship practice across European countries, UK and USA advising HNWIs and their families on:

immigration planning;
consultations on obtaining alternative (second) citizenship;
Residency and Citizenship by Investment;
business immigration;
preparation of appeals, working with complex immigration cases.

She advises individuals and corporate clients for wealth/business structuring and assets protection. Central to her Managerial role in the company she initiated and united high level lawyers and other top professionals around the word in order to provide Feod Group clients with bespoke level of legal and business services word wide, keeping the staff focused on the opportunities and challenges faced by each individual client. Speaks Russian, Ukrainian, English.