Acquisition of immovable property

Under Cyprus Law, Cyprus citizens as well as E.U. citizens who have their permanent residence in Cyprus are allowed to acquire any property without any restrictions.

The residential status is ascertained by the district Offices and is obtained when a person resides in Cyprus for a total period of 183 days per year or more.

Foreigners and E.U. citizens who are not permanent residents in Cyprus, wishing to purchase immovable property in Cyprus, are obliged to adhere to special formalities and are restricted by certain regulations.

1. Restriction as to the size and type of the property. The above individuals are given permission to acquire only one of the following:

• one apartment
• one building
• building plot or land up to 4,014 m².
  

For foreigners living or working in Cyprus for a long period of time a permit to acquire a second house can be granted.

After the permission has been obtained and the property is registered in the name of the purchaser, there are no other restrictions for the foreigner. The owner of the immovable property can sell or dispose of the property as he wishes, as any bona fide repeat purchaser will be granted a subsequent permit.

Approval by the Council of Ministers

According to Cyprus Law, foreigners must obtain the permission of the Council of Ministers prior to the acquisition of real estate property. Recently these powers have been assigned to the pertinent authorities of every district, in order for the procedure to become speedier.

A foreigner – the law uses the term “alien” – is any person who is not the citizen of the Republic, including an alien controlled company. The term does not include the non Cypriot spouses of the citizens of the Republic.

Acquisition of real estate property includes:

• Transfer of title deed
• Long lease for periods of more than 33 years.
• The acquisition of shares in a company that owns immovable property, if such an acquisition results in the company becoming controlled by foreigners.
• The establishment of a trust or any type of set-up, which is connected with the ownership of the real estate, for the benefit of a foreigner, including tax benefits.

Although the proceedings for the obtaining of the permission might need a considerable amount of time to be fulfilled, purchasers are entitled to occupy their properties until then.

In addition to that any contract for the purchase or lease of property is valid even if the pertinent authority rejects the foreigner’s request for a permit. As such, when purchasing a property, it is advisable for the relevant contract to include provisions for such an event so as to secure a refund of any money paid or any other remedy.

The application to the pertinent authority requires information about the personal details and financial standing of the applicant and particulars of the property and its present owner. Also it must be accompanied by a number of legal documents.

As a general rule permission is granted to bona fide applicants provided they have:

• No criminal record in their country or in Cyprus.
• The financial means to support themselves in Cyprus. (An income of CYP12.000 per annum between the couple is considered satisfactory).

Fees and charges:

For registering the property under his/her name the purchaser is liable to pay the following transfer fees, calculated according to the property market’s value:

Market value (CYP)	Fees Rate
1. Up to CYP 50.000	3%
2. From CYP 50.000 to CYP 100.000	5%
3. Over CYP 100.000	8%