Acquisition
of immovable property by international business companies
and expatriate directors / employees
Cyprus is a popular place among foreigners for holidays,
business, permanent residence and retirement and demand
for the acquisition of property in Cyprus by foreigners
either for holiday houses, residence or offices is
high. The factors that contribute to the attractiveness
of Cyprus as a place for property acquisition are
mainly:
· The pleasant living conditions, the attractive
climate and the high quality of life,
· The relatively low cost of living
· The sense of security
· Excellent communications and infrastructure
· The hospitality of the locals and the widely spoken
English language
Limitations for acquisition
of immovable property in Cyprus by foreigners
Under the existing regulations, property acquisition
by aliens (i.e. any person who is not a citizen of
the Republic, including an alien controlled company)
is limited and currently permission is given to acquire
only one of the following:
· Apartment
· House
· Building plot or land up to approximately three
donums (2675 square meters)
By acquisition of real estate property we mean either
transfer by registration or long - leases of more
than 33 years, or the acquisition and control of shares
in a company that owns real estate or the establishment
of a trust or other set up for the benefit of an alien.
International business entities 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 Council of Ministers will grant approval
for the acquisition by an alien of a larger area of
land, if the land is to be used for touristic development
(eg Hotel or Hotel Complex), especially if the intended
project is in area where the government wishes to
promote tourism. A similar stand is taken for certain
industrial sectors. With the imminent accession of
Cyprus to the European Union the above limitations
are expected to relax for European citizens.
Procedure for acquisition of
immovable property
1. Application for approval
The acquisition of real estate property by aliens
requires the approval of the Council of Ministers
under the Immovable Property Acquisition (Aliens)
Law, an authority which has now been delegated to
the District Administrators. The details required
for the application form are as follows:
· Personal details of applicant
· Financial standing
· Particulars of the property for acquisition
· Particulars of present owner
· Terms of payment
· Type of acquisition ( i.e. freehold, leasehold or
shares in a property company)
· Copies of the land registry survey plans
The application is submitted to the District Officer
for consideration and approval. The decision is granted
in about 3 months but there is no restriction in taking
possession of the property in the meantime. The permit
for the acquisition of immovable property by an alien
is granted only if:
· The house will be used only for his residence and
the building plot or land does not exceed 2675 square
meters.
· It is used for professional or commercial business
· It is used in manufacturing in areas where the Council
of Ministers believes that it will be for the benefit
of the Cyprus economy and the production of products
that are related to the use pf new technologies or
technical knowledge.
The permit has the following conditions and restrictions:
· The transfer to be effected within a year from
the date of the permit or within three years in case
of construction or a building on the property
· The costs to be paid in foreign currency
· All taxes to be paid
· The permit is given for the specific property and
use only
2. 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, so that in
case of selling the house, the funds to be received
to be exempted from any exchange control regulations.
· Contract of sale
· Copy of the permit for the acquisition of the property
· Certificate from the commercial bank evidencing
the importation of the foreign exchange
· Registration certificate of the property
