Cyprus Property Sales

Purchasing Property
Due to the high standard but low cost of living, its hospitality, good climate and low crime rate Cyprus is becoming increasingly popular as a retirement and holiday location and demand for homes by foreigners is increasing thus causing values to appreciate. However property prices in Cyprus are still very favourable as compared to other European countries. Furthermore the Cyprus Land Registry System is advanced and purchasers of property in Cyprus are more secure, with regard to their Title Deeds than they might be in other countries.

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

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.