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Financing A Property Purchase In Cyprus

Financing your property in Cyprus can take the form of a mortgage, equity release scheme or the use of your own funds. Most investors opt for a mortgage, which are available from banks in Cyprus.


Southern Cyprus

Mortgages are widely available in Southern Cyprus and the terms are similar to those in the UK. However, you may require some help from our experts with the process of applying for your mortgage.

Main Characteristics of Mortgages in Cyprus
  • Mortgages in Cyprus are authorized by most commercial banks, they are able to offer mortgage facilities to locals as well as foreign nationals. Loans are based on the purchaser providing a minimum deposit of 30%.
  • Repayment mortgages can be acquired in any foreign currency, eg. U.S. dollars, British pounds, Euros and Swiss francs, or in Cypriot Pounds.
  • A Euro mortgage avoids capital loss through currency exchange should you rent out your property, provided you keep to the local currency. It is important to research who you will be renting your property to, what currency they will be paying in and plan your mortgage accordingly.
  • For a loan in foreign currency, the maximum period of the loan is 15 years.
  • Loan payments can be made in monthly or quarterly installments.
  • Loan value is normally up to 70% of the property valuation. However sometimes 80-85% can be negotiated if the property is newly built.
  • Life insurance will be required when taking out any mortgage in Cyprus.
  • Cypriot Eurozone interest rates are currently around 4%

Should you not have 30% deposit available for your down payment, you may apply for a loan to cover it by using an equity release option on your existing home.

Documents Normally Required by Cypriot Banks
  • Personal details, including copies of passport
  • Employment contract and P60s, or business accounts from your accountant.
  • Documentation regarding existing debts, regular outgoings and details of any other mortgages in operation.
  • Bank reference from your bank.
  • Completed personal income declaration form.
  • Original of Purchase Agreement
  • Copies of your bank statements for the last three months
  • Copies of receipts for deposit payments made to the vendor for the property
  • You will need to open and activate a bank account in the same bank you obtain your mortgage from.
  • Acquisition Permit from the District Authorities to allow the mortgage to be released by the bank.

It often makes financial sense to buy property as a company. For legal, tax and inheritance law reasons you are recommended to review this option. will gladly give you expert advice as to whether this is a suitable option for your particular circumstances.

Northern Cyprus

Northern Cyprus has traditionally been a cash buyer’s island where only those with a sizeable lump sum can secure their dream Mediterranean home. However today, thanks to the development and maturity of the property market in TRNC there are several banks, estate agents and property developers now happily assisting with finance for property purchase on the island.

Due to the unique political situation in Northern Cyprus it is not currently possible to raise a foreign mortgage on a property located in the TRNC. However, some Turkish banks operating in North Cyprus do, however offer mortgages to their customers as they understand the political situation here. They have worked with it for some 30 years and are aware of ongoing developments underway to bring about a final peaceful resolution to the Cyprus problem.
Turk Bankasi currently offers the most flexible terms:

You can borrow:

  • Up to 40% of the total price for a house purchase with an £80,000 mortgage ceiling.
  • Up to 50% of the total price for an apartment with a £50,000 mortgage ceiling.
  • Up to 2.5 times of your combined household income.

Base lending rates start at 4% and repayment is over a maximum of 8 years.

Off-Plan Financing

It is always worth considering the off-plan finance options offered by developers as these are sometimes preferential to the terms of a standard bank mortgage. Initial deposit and other payment terms can vary according to the construction phase of the project and rates are often competitive.

Property developers in Northern Cyprus have quickly caught onto the fact that the previous lack of bank finance restricted the local property market potential. Today many developers in Northern Cyprus offer a varied range of financial incentives and payment options to their customers.

Equity Release

Equity release is an efficient way of releasing cash from a property you already own, without having to sell up.

If you are in your mid-50s or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in some circumstances to raise money for a mortgage to finance your investment property in Cyprus.

Alternative Finance

Not everybody falls into a category and some investors will need to raise alternative finance to equity release or mortgage options. There are other borrowing facilities available to investors of Cyprus property.

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