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Cyprus Local Reference INFOrmation

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Foreign Exchange and Property Purchase

Information on how best to make your money work for you when buying overseas property in a foreign currency: how market fluctuations can affect the price you pay, and how to protect your finances during the currency transfer.

Fluctuating exchange rates can make a huge difference to the final price paid when buying a property in Cyprus using currency other than the Euro (GBP, USD, AUD and so on). Market changes affect the rate of exchange when transferring money.

The cost of a property purchase can fluctuate significantly if foreign funds are being used for the purchase, as even small changes in the currency exchange rate can mean a significant increase in the cost of a property: while the property is price is fixed in euros, the cost of the property depends on how much of the buyer's currency is needed to pay for it.

An example using GBP:

A European property priced at €200,000 would have cost £146,746 at the beginning of January 2008. As a result of currency movements, that same property would cost eight percent (£11,984) more in June 2008

The Effects of Fluctuating Exchange Rates

On average it takes six to eight weeks to complete a property purchase in Cyprus; currency rates can change dramatically within a single month and have an impact on the final price paid for the property. The average purchase time rises from six to 24 months for a property bought off plan.

Transferring Money for Overseas Property Purchase

Arrangements for currency transfer can be made with high street banks or currency brokers specialised in transferring large sums of money overseas.

Currency brokers allow for exchange rates to be fixed at the outset for up to two years to protect against adverse currency movements and reduce risks on the final cost of an overseas property purchase.

Information supplied by HiFX, Morgan House, Madeira Walk, Windsor, Berkshire, SL4 1EP
Web: www.hifx.co.uk / Tel: +44 (0)1753 751751 / Fax: +44 (0)1753 751750
Copyright © 2008 HIFX All Rights Reserved