Cypriots & E.U. citizens living in Cyprus
Under Cyprus Law, Cypriots or persons of Cypriot origin as well as E.U. citizens who have permanent residence in Cyprus are allowed to acquire any property without any restrictions.
The residential status is ascertained by the District offices and is obtained when a person resides in Cyprus for a total period of 185 days per year or more.

E.U. citizens not permanently living in Cyprus & Non E.U. citizens
E.U. citizens who are not permanent residents, wishing to purchase immovable property in Cyprus are obliged to adhere to special formalities and are restricted by certain regulations.
A restriction to the type and size of the property is applied. EU citizens not permanently living in Cyprus and non EU citizens are given permission to buy only one apartment or one house or a building plot or land. In the case of EU citizens the property size can be unlimited and in the case of non EU citizens it can be up to 4,14 square meters (the equivalent of three donums).
The restrictions applied for E.U. citizens not residing in Cyprus will seize after 2009 and all citizens of the E.U. will be treated as equal to Cyprus citizens, regardless of their residential status.
After the permission has been obtained (see point 3 below) and the property has been registered in the name of purchaser, there are no other restrictions for foreigners who are the owners of immovable property in Cyprus. They may sell or dispose of the property as they wish. The foreigner owner of immovable property can sell it and buy another and as any bona fide repeat purchaser will be granted a subsequent permit.

The restrictions applied for E.U citizens not residing in Cyprus will seize after 2009 and all citizens of the E.U. will be treated equally with Cypriot citizens, regardless of their residential status.

2. Making an offer
Buying a property in Cyprus is very similar to buying property in UK. You make an offer and if it is accepted, it is normal to give a nominal deposit (between CYP 1,000 and CYP 2,000) to reserve the property, bind the owner, have the property taken off the market and secure it at that day’s price. This in Cyprus, unlike the UK, is legally binding and so “guzumping” does not exist. Contracts are consequently drawn up and this process takes only a few days. Upon signing of the contract, the buyer must pay at least 200%-30% of the value of the property. The remaining sum is paid according to the terms agreed with the seller which usually include periodic installments until delivery.

3. Approval by the Council of Ministers
According to Cyprus Law, foreigners must obtain the permission of the Council of Ministers prior to the acquisition of the real estate property. Recently these powers have been assigned to the pertinent Authorities of every district, in order for the procedure to become speedier.
A foreigner – the law uses the term “alien” – is any person who is not a citizen of the Republic, including an alien controlled company. The term does not include foreigners of Cypriot origin or non Cypriot spouses of citizens of the republic.

Acquisition of real estate property in Cyprus includes:

– Transfer of title deed
– Long lease for periods of periods of more than 33 years
– The acquisition of shares in company that owns immovable property,
if such acquisition results in the company becoming controlled by foreigners.
– The establishment of a trust or any type of set-up, which is connected with the ownership of real estate, for the benefit of a foreigner, including tax benefits.
Although the proceedings for the obtaining of the permission might need a considerable amount of the time to be fulfilled, purchasers are entitled to occupy their properties until then.
Furthermore, any contract for the purchase or lease of property is valid even the Pertinent Authority rejects the foreigner’s request for permit. As such, when purchasing a property, it is advisable for the relevant contract to include provisions for such an event so as to secure a refund of any money paid or any other remedy.
The application to the Pertinent Authority requires information about the personal details and financial standing of the applicant and particulars of the property and its present owner. Also it must be accompanied by a number of legal documents.

As a general rule, permission is granted to bona fide applicants provided they have.

– No criminal record in their country or in Cyprus
– The financial means to support themselves in Cyprus. (An income of CYP 12,000 per annum between the couple is considered satisfactory)
As of 1 May, 2004, citizens of the E.U residing in Cyprus or Cyprus based companies controlled by citizens of a Member State are not considered to be foreigners. As for citizens of the EU not residing in Cyprus, there is a transitional period until May, 2009, after which, they will be treated as equal to Cypriot citizens, regardless of their residential status.

4. Specific performance – safeguard for the buyer
Specific Performance Law safeguards a purchaser of immovable property from a transaction between a seller and a purchaser, especially when the purchaser is not allowed to immediately transfer the acquired property onto his/her name even though payment of the consideration has been effected.
According to the provisions of Specific Performance Law, the purchaser of immovable property may secure the transfer of the acquired property onto his/her name by deposing a duty signed and stamped copy of the contract at the Land Registry, within two(2) month from the signing of the contract.
By depositing the contract in the Land Registry, the purchaser prevents the owner from transferring the property elsewhere or changing it, for as long as the contract is valid and legally effective. No burdens, charges or encumbrances can affect the right of specific performance after the contract has been deposited with the Land Registry.
Depositing a copy of the contract to the Land Registry gives the purchaser the right to seek “specific performance” of the terms and conditions of the contract and thus to register the property onto the purchaser’s name, even though the owner may not be willing to accommodate such procedures.