Cyprus Finance

Once residential licenses have been approved, the next step is working out a payment plan with your local bank. Generally, you must provide the bank with specific documents in order to complete the property ownership registration process for a bank loan. Below are the details regarding bank required documents as well as procedures required to apply for a bank loan.

Cyprus Banks - Required Documentation:

• Customers profile (personal details, occupation-duration of your employment contract, if any, with your current employers).
• Passport copies (page displaying photograph and personal information).
• Statement of existing debt (if any).
• A reference letter from the banks you maintain current account/s with.
• Completion of the attached Declaration of Personal Income.
• Evidence of income - either pay slip or confirmation of remuneration from your employer, or P60 or business accounts.
• Purchase agreement (will need original document when ready for loan drawdown).
• Copies of bank statements reflecting the last three months.
• Copies of payments already made by the applicant for the property.

Cyprus Loan Procedures: Loan procedures for EU citizens are standard for most banks in Cyprus. Once you have been approved for a loan, there are two options which you can choose from in order to repay your monthly installments. Below are bulleted points regarding the loan and repayment procedures.

• The loan can be granted in foreign currency (i.e. USD, EUR, GBP, etc.) or in Cyprus Pounds (CYP). The repayment of the loan must be effected from external sources.
• It is advisable that the loan is in the currency that the applicant receives his/her income, so that there is no exposure in any exchange risk during the repayment period.
• For a loan in foreign currency the maximum repayment period can be 15 years.
• For a loan in Cyprus Pounds the maximum repayment period is 25 years.
• The maximum loan amount will be 60% of the value of the purchased property. In exceptional cases the amount can be 70% of the value of the purchased property (depending on the credit rating of the customer).
• The loan is repaid by monthly installments.