Cyprus is an attractive location for property investments for many reasons. On the one hand, the considerable statutory tax schemes, reliable legal framework and easy bureaucratic procedures motivate businessmen to invest in real estate in the Republic of Cyprus. On the other hand, the warm climate and quality of life attract individuals, pensioners and families looking for a holiday home or a new work environment, to buy real estate on the island.

I would like to underline that Cyprus has a well-developed legal system that regulates the purchase of real estate and is harmonized with European legislation. All matters related to real estate are regulated through a set of laws, often modified based on social and economic conditions.

The Real Estate Law, Cap. 224 regulates all matters related to the ownership, registration and valuation of immovable property following the principles of the Cyprus Land Registry, in which immovable property is defined, recognized and valued.

In this article, I will point out the main aspects that you need to consider in case you are planning to buy or sell real estate in Cyprus. The Constitution of Cyprus safeguards the protection of property for everyone, regardless of their nationality. That is, Cypriots and foreigners have the same rights related to ownership of their property without any interference from the government or anyone else.

ACQUISITION OF REAL ESTATE IN CYPRUS

As mentioned, Cypriot citizens and non-Cypriots, permanent residents of the Republic of Cyprus have the right to acquire any property without restrictions. Residential status is accredited by the district offices. A person is considered to be a permanent resident of the Republic of Cyprus if they reside on the island for at least 185 days a year. At this point, it should be noted that foreigners and EU citizens who are not permanent residents of the Republic of Cyprus and wish to acquire real estate in the Republic of Cyprus are required to follow specific procedures. However, foreign buyers should also be aware of some restrictions.

At this point it should be clarified that non-Cypriot citizens who live or work on the island for many years will be able to acquire a second home in the Republic of Cyprus. Once foreign buyers obtain the necessary permission and the property has been registered in the buyer’s name, there are no further restrictions. Therefore, the foreign buyer is the owner of the property located in the Republic and can sell it or dispose of it at his whim. I would like to emphasize that the heirs of the foreign owner are not required to obtain a permit from the Council of Ministers in order to proceed with the transfer of the property to his name.

SELLING REAL ESTATE IN CYPRUS

The Sale of Immovable Property (Specific Execution) Act, 2011, (N. 81(I)/2011), provides the necessary protection to buyers with regard to the purchase of immovable property in Cyprus. Specifically, the provisions of this particular regulation prevents the developer from moving the property to another place or charging it for the duration and legal effects of the contract. If the seller does not transfer ownership to the buyer, the buyer can file a lawsuit in court.

TRANSFER FEES:

• If the value of the property is less than 85,430 euros, the transfer fee is 3%.

• If the value of the property is between 85,431 and 170,860 euros, the transfer fee is 5%.

• If the value of the property is greater than 170,861 euros, the transfer fee is 8%.