Acquisition of Property means
· Registration of Transfer
· Leases of more than 33 years
· Acquiring shares in a company owning real estate
· The establishment of a trust or any other set-up, which owns
real estate.
Acquiring Property
Foreigners wishing to purchase real estate in Cyprus must:
(a) Obtain approval from the Council of Ministers and are allowed only
one of the following:
· An apartment
· A House
· A Building Plot up to 4014 sq. m.
(b) Not have a criminal record
(c) Be able to support oneself in Cyprus with a secure foreign income of about CYP5.000 per person per annum.
Offshore entities may purchase premised for their business or for the residence of their foreign employees but companies with a dubious past or unclear ownership will not be favoured.
Registration of Property must comply
with the law and the following, in addition, to the above are general
guidelines.
A foreigner:
· Can purchase or build a residential property for his use only.
· Must import the foreign Exchange and produce proof of such importation
from the Commercial Bank and the Central Bank although offshore financing
can be arranged provided that certain criteria are met.
· And his wife can only buy one house. (Not one each.)
· Cannot purchase a property in joint ownership save with his wife.
· May be allowed to buy a second property e.g. a holiday home if
he has lived and in Cyprus for a long time.
· Is not permitted to transfer of a share in property.
· Can sell his property to buy another.
· May let his residence only for periods in excess of 28 days to
a resident of Cyprus.
· May immediately remit capital from the sale of a property abroad
if the purchase was made with foreign currency. If not then the proceeds
must be deposited into a bank account and will thereafter be remitted
in three equal annual instalments, with a minimum annual amount of CYP50.000.
· Is not permitted to buy property for investment except in the
case where an already owned residence is rented to permanent residents
for periods of more than 28 days.
Contracts to purchase or lease real estate are valid and it is recommended
that a clause be included in the contract to cover damages or other remedy
in the unlikely event that an application for approval to purchase is
rejected by the Council of Ministers.
Non-residents selling their property to other non-residents on the basis of an agreement concluded abroad are allowed to receive the entire proceeds abroad without the requirement of an exchange control permit.