Buyers Guide

To purchase a Freehold title property, there are a number of checks carried out by the Ministry of Interior. This will inevitably take approximately 12-24 months to be completed.

The process for buying any freehold property is as follows:-

1.  Decide on the property and agree price.

2.  Pay an agreed holding deposit to secure the property as well as the 0.5% contract stamp duty.

3.  Contract drawn up by solicitor, setting down the terms of sale, i.e. price, timescale, Vendor, Purchaser and any other special conditions.

4.  Vendor and Purchaser sign.

5.  Contract is stamped at the Tax office and the 0.5% contract stamp duty is paid.

6.  Contract is registered at the land registry office.

7.  Purchaser provides 20% deposit within the time frame specified in the contract (usually within 14 days).

8.  Solicitor applies for a Purchase Permit from the Council of Ministers.

9.  The purchaser pays the balance on the date agreed within the contract and takes possession of the property.

10.For off-plan, or properties that are under construction, stage payments are paid until completion of the property under the terms of the contract. Purchaser then takes possession of the property.

11.Purchaser pays balance, transfer of title stamp duty which is currently 6% (reduced to 3% on any one purchase) and 1% of the stamp duty charge to the local council,  plus any KDV (VAT) applicable. Vendor then signs title deed into name of the purchaser.

12.Sale completed.

The costs involved are as follows:

• Solicitors Fees:    Including; drawing up of contract, POA, purchase permit application, contract stamping & registration and seeing sale through to completion = £1,250

• Stamp Duty:       Currently at 6% (reduced to 3% on any one purchase) of the valuation levied by the Land Registry Offic and 1% of the stamp duty charge, paid to the Local Council.

• KDV (VAT):       Currently at 5% of the valuation levied by the Land Registry Office. Payable on all sales except those where the title is being transferred from an individual and not a company.

• Contract Duty:   Currently at 0.5% of the Contract value, payable at the TAX office within 21 days of the Contract date.

Process for buying a leasehold property is as follows:-

• The process to purchase is much the same as freehold purchases, however, instead of an application going to the Ministry of Interior, you must apply either directly or via a solicitor to the Ministry of Tourism, who grant the lease.

• At the time of application a deposit of 20% must be paid and held on behalf of the Vendor. Once application is accepted the sale can proceed to a completion at a convenient time for Vendor and Purchaser and then the lease is transferred into name of the buyer.

1. Secure property and price.

2. Contract drawn up by solicitor agreeing terms and conditions.

3. Vendor and Purchaser sign.

4. Vendor applies to Tourism Office to transfer lease.

5. Purchaser applies to take over lease. (May include personal interview)

6. Once purchaser application is approved, 20% deposit transferred.

7. On completion, remaining balance paid over to vendor and lease transferred.

8. Sale completed.

The costs involved are as follows:

• Solicitors Fees:  Including; drawing up of contract & POA = £300
• Stamp Duty:      Fixed charge = £500
• Contract Duty:   Currently at 0.5% of the Contract value, payable at the TAX office within 21 days of the Contract date.