ACQUISITION OF IMMOVABLE PROPERTY IN CYPRUS BY NON-EU CITIZENS

ACQUISITION OF IMMOVABLE PROPERTY IN CYPRUS BY NON-EU CITIZENS

Cyprus is a leading international business centre combining advanced corporate infrastructures, warm weather and economic stability. As a result of all the above, many foreigners decide tolaunch their real estate projects on the island.

 

A considerable advantage of purchasing immovable property in Cyprus is that the right of ownership is constitutionally protected. Article 23 provides that all individuals, regardless of nationality, who acquired real estate property in Cyprus legally may enjoy all rights associated with the ownership of their property without any intervention from the government or other individuals.

 

Non-EU citizens wishing to buy immovable property in Cyprus are required to have the approval of the Council of Ministers. In addition to this, the ownership is limited to:

  • An apartment;
  • A house;
  • A building plot or land up to 4.014 m2;

Furthermore, non-EU citizens are allowed to buy a shop as well, under the condition that the shop will be used exclusively for business purposes.

Cyprus Companies whose shareholders are not EU nationals may acquire business offices and residence for their foreign employees provided that they maintain a fully- fledged office.

Have in mind that the Council of Ministers may grant permission to own more than one buildings. For instance, in the case of a property developer wishing to take over a hotel.

How to obtain the approval of the Council of Ministers:

Firstly, our legal team will complete an application form and submit it, together with the necessary documentation to the District Office of the District where the property is located.

Secondly, the District Officer will carry out his research and prepare a report which will be submitted to the Council of Ministers. Meanwhile, any contract you have signed and submitted tothe Land Registry for Specific Performance to buy a property is still valid and you may take possession of the property while your application is under revision.

Afterwards, the Council of Ministers will inform the District Officer whether the Application has been approved or rejected. Note that it is unusual for the Council of Ministers to refuse permission to bona fide non-EU nationals.

Finally, the District Officer will send, to the potential buyer, a letter of approval or refusal.

Necessary documentation:

  1. Survey plan
  2. Title of ownership
  3. A building permit for the construction of the house/block of flats or for the residential development of estates.
  4. Contract of Sale
  5. A sectional view of the building or the flat.
  6. The area in square metres of the plot which is to be purchased.
  7. Financial standing documents, for example, bank statements.
  8. A copy of Applicant’s and his/her spouse’s passport. If the spouse and the Applicant do not have the same surname, then a marriage certificate must be submitted;
  9. A copy of applicant’s residence and work permit.
  10. Application COMM 145
  11. In case the applicant is a company or a shareholder in an offshore company, then it is required to provide the relevant information regarding company’s activities in Cyprus and the staff, both Cypriots and foreigners with their social insurance numbers. Moreover, the following corporate documents, must be submitted:
    1. Certificate of registration
    2. Certificate of shareholders
    3. Certificate of the registered office
    4. A copy of Articles of Association.

Transfer Fees:

The transfer of ownership of immovable property is carried out at the Department of Lands and Surveys, provided that the following documents have been submitted:

  • Application Form N207;
  • Copy of the District Office approval;
  • The registration deed of the property;
  • Evidence that all property taxes have been paid;

 

Property’s Value

(€)

Transfer Fee

(%)

0- 85.430, 10 3
85.430,10-170.860,14 5
More than 170.860,14 8

 

Immovable Property Tax:

In accordance with Section 3 of Law 24/1980, the owner of a property is obliged to pay an annual immovable property tax.

 

Value (€) Annual Immovable Property Tax (%)
0-40.000 0.6
40.001-120.000 0.8
120.001-170.000 0.9
170.001-300.000 1.1
300.001-500.000 1.3
500.001-800.000 1.5
800.001-3.000.000 1.7
More than 3.000.000 1.9

 

 

Stamp Duty:

The contract must be stamped within 30 days from the date of signing. If the stamp duty is not paid on time, then the buyer will have to pay the stamp duty plus a fine.

 

Property Value

(€)

Stamp Duty

(%)

up to €170.860,14 0.15
more than €170.860,14 0.20

 

Are you planning to invest in real estate in Cyprus?

Rah Legal has expertise in the area of Cyprus immovable property law. Our experienced real estate lawyers may provide you with a custom-made legal and administrative support, and assist you with all the matters related to purchasing immovable property in Cyprus. We are able to carry out, on your behalf, all the relevant bureaucratic procedures. The services of Rah Legal are available in English, Greek, Hebrew and Arabic. For more information, please contact us.

 

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