Mortgage for purchase of property in Southern Cyprus
🏠 Financing real estate in Southern Cyprus for EU citizens
This article provides an overview of the procedure for obtaining a mortgage loan in Southern Cyprus (Republic of Cyprus) for buyers who are permanent residents of a European Union country.
- Basic financing conditions
Obtaining a loan for non-residents (EU citizens without Cypriot permanent residence) is a standard process, but with stricter conditions for the share of own funds:
LTV (Loan to Value): Banks typically finance a maximum of 50% of the purchase price of the property.
Own funds: The buyer must have the remaining 50% of the price from their own funds.
Currency: Loans are provided in Euros (€), which eliminates currency risk for Eurozone residents.
- Reservation process and money-back guarantee
The first step to acquiring a property and starting the banking process is its fixation.
Reservation fee: The buyer pays a deposit of €10,000.
Withdrawal from sale: After the payment is credited, the apartment/house is officially withdrawn from the market and reserved for the client.
Refund clause: Our company Cyprus Properties guarantees that in the event that the bank rejects the loan application, the reservation fee of €10,000 is fully refunded to the client. The client therefore bears no financial risk associated with the non-approval of the loan.
- Banking process and documentation
The reservation is followed by an official application to a Cypriot bank. The client must be prepared to provide:
Proof of income: Employment contracts, payslips or tax returns (in the case of entrepreneurs).
Proof of funds: Banks strictly verify the origin of their own funds (e.g. sale of other property, savings, inheritance) in accordance with AML (Anti-Money Laundering) regulations.
Bank Statements: Typically for the last 6-12 months from an account in your home country.
Important Note: Each case is assessed individually by the bank. We recommend that clients start collecting income documentation prior to the inspection in Cyprus to expedite the process.
