 As from 1st May 2004 and the admission of Cyprus in the E.U, Any European citizen can freely acquire any number of immovable properties in Cyprus. All previous restrictions have been lifted and property in Cyprus can now be bought simply by signing an agreement between the vendor and the buyer.
Non E.U. citizens wishing to purchase property in Cyprus must apply to the Council of Ministers for permission, and, when granted, they much prove that the purchase consideration is from foreign currency.
Transfer of ownership from vendor to buyer is accomplished by a simple procedure through the Cyprus Land Registry, either by the buyer in person or by an appointed third party with the necessary Power of Attorney. When issued, the title deed will be registered in the name of the buyer and will be recorded in the government archives. The government archives are confidential and will not be published or made accessible under any circumstances. The buyer is free to sell or dispose of the property at will after the purchase, provided that a valid contract exists.
The sales agreement, when signed, gives the buyer the absolute right to the title of the property, once the sales agreement is lodged with the land registry department, and until a separate title deed is issued in the buyer’s name. In order to lodge the agreement, stamp duty must be paid (at a rate of 0.15% on the first €171,000 of the property, and 0.2% on any amount above that.) Stamp duty covers the cost of the legal stamps required to make the sales agreement legally binding.
Legal Safeguards for Foreign Investors
Contrary to the risks inherent in the purchase of property in some countries, Cyprus has never been involved in the nationalization of any sector of the economy, nor in the expropriation of property owned by foreigners. Indeed, the Republic has often guaranteed foreign investments jointly and severally with local participants, consistent with its’ efforts to create a favourable climate for such investments. |