Acquisition of Real Estate in Cyprus

Cyprus’ geographical location between Europe, Asia, the Middle East and Africa, together with well-established legal, banking and accounting infrastructures, encourage local and foreign entrepreneurs to invest in real estate. A considerable advantage of the Cyprus legal system is the protection of property without discrimination. That is to say, according to the Law of Cyprus, Cypriot citizens and foreigners can enjoy all the rights associated with the ownership of their property without any intervention of the State or private individuals. Furthermore, Cyprus has been a member state of the EU since 2004 and adopted the euro in 2008. As a result, the acquisition of real estate in Cyprus became easier.

Cypriots and EU citizens:

According to the Cyprus Law, Cypriots and EU citizens in Cyprus can acquire any property without restrictions.

Non-EU citizens:

For non-EU citizens, there are restrictions on the type and size of real estate they can buy. Precisely, non-EU citizens can purchase a house/an apartment/a plot/land of up to 4,014m2. It should be underlined that non-EU citizens can also buy a store on the condition that the store is used for commercial purposes only. Furthermore, it should be noted that Cyprus companies whose shareholders are not EU citizens can obtain business offices and residence for their foreign employees as long as they maintain a full-fledged office.

In accordance with the provisions of the Real Estate Acquisition (Foreign) Act (Cap 109), non-EU citizens wishing to purchase real estate in Cyprus must submit an Application to the District Office of the district where the property is located.

The Applicant must submit along with the Application the following documents/details:

• Completed and signed Comm 145 form

• Sales contract

• Financial situation (ie a bank statement)

• Data of the property and the current owner

• Payment terms and form of acquisition

• Copy of the Applicant’s and his/her spouse’s passport. In case the spouse does not have the same last name as the applicant, a marriage certificate must be presented.

• Copies of government inspection plans

The approval/rejection letter from the District Office can take approximately up to six months. However, the Applicant may meanwhile take possession of the real estate that he purchased.

Transfer of ownership:

The transfer of ownership of real estate is carried out at the Department of Land and Surveying. It is necessary to present the following documents:

• Application form N207;

• The deed of registration of the immovable property;

• Copy of the District Office approval;

• Proof that all property taxes have been paid;

Rates and charges:

When a buyer registers real property in his name at the District Land Office, he must pay the corresponding transfer fee, which is calculated based on the market value of the property at the time the contracts are signed. For more information, see Table 1.

Property Value in Euros / Transfer Fee (%)

Less than €85,430.10 / 3

€85,430.10 – €170,860.14 / 5

More than €170,860.14 / 8

Table 1

Real Estate Tax:

According to article 3 of Law 24/1980, the owner of a property is obliged to pay an annual tax on real estate, as illustrated below.

Value (€) / Annual Tax (%)

Less than 40,000 / 0.6

40,001-120,000 / 0.8

120,001-170,000 / 0.9

170,001-300,000 / 1.1

300,001-500,000 / 1.3

500,001-800,000 / 1.5

800,001-3,000,000 / 1.7

More than 3,000,000 / 1.9

Stamp duty:

Usually, the buyer is obliged to pay a stamp duty of 0.15% of the value of the property up to €170,860.14 and 0.20% for more than €170,860.14. The contract must be sealed within 30 days of signing. It should be noted that if you do not pay stamp duty on time, you will have to pay stamp duty plus a fine.

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