Paying for Property in Cyprus: Currency and Finance Options for Foreign Buyers

Summary

• All property in Cyprus is priced and paid for in euros

• UK, US and Canadian buyers should plan for exchange rate movements between reservation and completion

• A currency specialist usually offers better rates than a high street bank on large transfers

• Most foreign buyers pay in cash or use a developer payment plan

• Off plan payment plans let you spread the cost across the build period

• Cyprus mortgages are available to foreign buyers, typically with lower loan to value ratios than for residents

• All funds should move through documented bank transfers

Buying in the eurozone

Cyprus is a full member of the eurozone, so every property on the island is priced and paid for in euros. If you already hold euros, it couldn't be simpler. If you're buying in sterling, dollars or another currency, a little planning goes a long way.

The upside is that your property is held in one of the world's most stable and widely traded currencies, which makes buying, owning and eventually selling straightforward. Here's how to plan the currency side of your purchase, and the three main ways foreign buyers fund it.

Currency planning for UK, US and Canadian buyers

For UK buyers, the exchange rate between sterling and the euro can move between agreeing a price and completing the purchase. For US and Canadian buyers paying through a staged plan, each instalment is converted at the rate on the day, so the cost in your own currency can change over the build period.

A currency specialist can help you manage this. Many offer forward contracts that fix today's rate for a future payment, and their rates on large transfers are usually far better than a high street bank. On a six figure purchase, the difference can be thousands of pounds or dollars.

Option one: buying in cash

Many foreign buyers, particularly those buying a holiday property or investment, pay in cash. It's the quickest and simplest route, with no mortgage application or credit checks, and it puts you in a strong position when negotiating with developers.

Option two: developer payment plans

This is one of the biggest advantages of buying a new build off plan, and one many buyers don't know about. Developers in Cyprus commonly offer staged payment plans: a reservation deposit, instalments linked to construction milestones, and the balance on completion.

It means you can fund your purchase gradually from income or savings over the build period, rather than finding the full amount up front. Our guide to buying off plan in Cyprus explains how payment schedules and completion work.

Option three: a Cyprus mortgage

Cyprus banks do lend to foreign buyers, and a mortgage can be a good option for the right purchase. Terms tend to differ from those for local residents, with lower loan to value ratios for non residents, more detailed income checks and a bank valuation of the property. Rates and lending limits depend on your circumstances, so speak to a lender or mortgage broker early for a clear picture of what's available to you.

Not sure which route is right for you?

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Moving your money safely

However you pay, your funds should always move through documented bank transfers. This keeps your purchase compliant with anti money laundering rules, gives you a clear record of where the money came from, and provides the paperwork your lawyer needs to complete. Budget for transfer fees, and on larger sums, use a currency specialist to get the best rate.

Frequently asked questions

What currency is used to buy property in Cyprus?

The euro. Cyprus is a member of the eurozone, so all property prices, deposits and payments are in euros.

Can foreigners get a mortgage in Cyprus?

Yes. Cyprus banks lend to foreign buyers, including non residents. Loan to value ratios are usually lower than for residents, and you'll need to provide detailed proof of income and allow for a bank valuation.

How much deposit do I need for a Cyprus mortgage?

It depends on the lender and your residency status. Non residents should generally expect to put down a larger deposit than local buyers. A lender or broker can confirm the exact figure for your circumstances.

What is an off plan payment plan?

A staged payment schedule offered by developers on properties that are under construction. You pay a reservation deposit, then instalments as the build progresses, with the balance due on completion.

Can I pay for a Cyprus property in pounds or dollars?

Your payments are made in euros, but you can send them from a sterling, dollar or other currency account. The conversion happens at the point of transfer, so it pays to use a currency specialist for a better rate.

How can I protect myself against exchange rate changes?

A forward contract from a currency specialist lets you fix an exchange rate today for payments due in the future. This is especially useful for staged payment plans over a long build period.

Is it better to buy in cash or with a mortgage?

Cash is simpler and gives you more negotiating power, but a mortgage or developer payment plan lets you spread the cost. The right choice depends on your budget, your plans for the property and your wider finances.

Why do I need to use a bank transfer to buy property in Cyprus?

Documented bank transfers are required to meet anti money laundering rules, prove the source of your funds and give your lawyer the records needed to complete the purchase.