Acquisition of Immoveable Property In Cyprus

Restrictions

 Foreigners are given permission to acquire one of the following: 

§          apartment 

§          house 

§          building plot or land up to approximately three donums (4,014 square meters) 

A company owned by foreigners may also acquire premises for their business and for the residence of their foreign employees provided they maintain a fully fledged office.  

In certain cases, it is possible that the District Officer will grant approval for the acquisition by a foreigner of a larger area of land, if the land is to be used for tourist development (e.g. Hotel or Hotel Complex), especially if the intended project is in an area where the Government wishes to promote tourism.  A similar stand is taken for certain industrial sectors.

Foreigner means any person who is not a citizen of the Republic and includes a foreign controlled company.

 Acquisition of real estate property includes:

 §          Transfer by Registration

§          Long leases of more than 33 years

§          The acquisition and control of shares in a company which owns real estate, if such an acquisition results in the company becoming controlled by foreigners.

§          the establishment of a trust or other set up for the benefit of a foreigner.

 Application to the District Office and application details

 The acquisition of real estate property by foreigners requires the approval of the District Office of the district where the property to be acquired is situated under the Immovable Property Acquisition (Aliens) Law Cap. 109.  The details required for the application and its subsequent amendments are as follows:

 a)                  Form Comm 145 duly completed and signed.

              Contract of sale.

b)                  Curriculum Vitae of applicant.

c)                   Financial standing of applicant.

d)                  Particulars of the property.

e)                  Particulars of present owner.

f)                    Terms of payment.

g)                  The way of acquisition (i.e. Freehold,

h)                  Leasehold shares in Property Company etc).

i)                    Copies of the government survey plans.

j)                    Marriage certificate in cases where the spouses do not have the same surname.

k)                  Copies of all the pages of the passport of the applicant and of their spouses.

The letter of approval or refusal may take up-to six months or even longer.  However, there is no restriction in taking possession of the property in the meantime.

 The permit for the acquisition of immovable property by a foreigner is granted only if:

 a)      The house will be used only for his own residence and the building plot or land does not exceed 4,014 square meters

b)      It is used for professional or commercial business

c)       It is used in manufacturing in areas where it is thought that it will be for the benefit of the Cyprus Economy and the production of products that are related to the use of new technologies or technical knowledge.  

The permit has the following conditions and restrictions:  

a)      The transfer to be effected within a year from the date of the permit or within three years in case of constructions of a building on the property

b)      . The costs to be paid in foreign currency

c)        All taxes to be paid

d)      The permit is given for the specific property and use only

 Application to the Central Bank

 The Central Bank will provide a certificate evidencing that the purchase consideration was paid in foreign exchange on submission of the following documents on form EC/NR/01:

 a)                  Contract of Sale

b)                  Copy of the District’s Office approval to acquire the property

c)                   Certificate from the commercial bank evidencing the importation of foreign exchange

d)                  Registration certificate of the property

 Application to the District Land Office

 The transfer of ownership is effected at the District Land Office on submission of the following documents 

a)                  Application form N. 270

b)                  The registration certificate of the property

c)                   Copy of the District’s Office approval

d)                  Central Bank's approval

e)                  Evidence of payment of all the property taxes to date.  

Central Bank Exchange Control Regulations

 e)      As from 1 February 1997 the acquisition of real estate property in Cyprus by foreigners and companies owned by foreigners is no longer affected by foreign exchange controls.