Approval by the Council of
Ministers
The definition of alien by law is any person who is not a
citizen of the Republic (whether resident or not) including
an alien controlled company, but it does not include aliens
of Cypriot origin or the alien wife of a person who is a
citizen of the republic.
For the purpose of the legislation, acquisition of real
estate property includes:
Transfer of registration
Long leases of more than 33 years
The acquisition of shares in a company, which owns real
estate, if such an acquisition results in the company
becoming controlled by aliens.
The establishment of a trust or any type of set-up, which is
connected with the ownership of real estate, for the benefit
of an alien.
Any registration of property not complying with the law is
invalid. The following general points of real estate
acquisition are hereby provided as a very rough and general
guidance.
A foreigner can buy a house for his own use only. In case of
a long established person who has business (e.g. offshore
company) or is residing in Cyprus, a permit to buy another
house may be forthcoming. E.g. A foreigner has a house in
Nicosia and wishes a beach-flat in Larnaca or a villa in
Platres for holidays.
A foreigner can buy land, for building, up to the extent of
three donums (4000 sq.mts.).
A permit to buy a plot of land outside the development area
will most likely be refused (this is not so in the case of a
house purchase so situated).
No transfer of a share in property can be effected i.e.
Permit will be refused in case of a foreigner acquiring a
share in property.
One couple (husband and wife) can only buy one house (not
one house each).
In the case of foreign companies they can buy/build their
offices only. No permit will be given for the purchase of a
residence unless the house can be registered in the name of
the company’s director and he makes the application.
A house cannot be bought in joint ownership save husband and
wife.
In case a foreigner will construct a building, the cost must
be paid in foreign currency.
In granting a permit to build, the Government may impose a
time limit to effect the transfer/construction of the
property.
Such limit may be extended, however, on application
depending on the circumstances. A period of three years is
considered as a maximum but this can also be extended.
A foreigner wishing to rent property for periods of
thirty-three years or more requires the Council of
Ministers’ approval.
A foreigner can sell his house and buy another. Any bona
fide repeat purchaser will be granted a permit.
A foreign purchaser may let his property for periods in
excess of 28 days to a resident of Cyprus (not short
lettings). This does not apply to offices.
Any contract in purchase/lease etc of real estate is valid
even if the Council of Ministers rejects the foreigner’s
request.
As such when purchasing property it is recommended that the
contract includes a provision for such an event so as to
secure a refund or other remedy to cover such an unlikely
occurrence.
The time period required for obtaining an answer from the
Council of Ministers, provided all documentation is in order
is approximately six-eight months.
As a general rule, all foreigners are permitted to acquire
house/business premises in Cyprus, provided they have:
No criminal record in their own country or in Cyprus.
The financial means to support themselves in Cyprus (An
income per couple in the region of CYŁ12,000 p.a. is
considered satisfactory).
Companies with dubious past, unclear ownership, unclear
business etc are not looked upon favourably.
Note: EU members can acquire and invest in any type of
property, two units until May 2009 and will be treated as an
ordinary Cypriot after this date.
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