WHAT CAN YOU BUY

As a Non-Cypriot, you are entitled to FREEHOLD ownership of 1 property at the present time, a villa or an apartment or a piece of land of up to 5 donums.  If you are of Cypriot origin or an EU national there are no restrictions.  With the new laws now as we have joined the EU you are also allowed to buy businesses (local trading companies or offshore).

1. MAKING AN OFFER

Buying a property in Cyprus is not much different from the U.K. You make an offer and if it is accepted it is normal to give a nominal deposit (between EURO 2.000 - and EURO 3.000,-) 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.  Contracts are consequently drawn up and this process takes a few days.  Upon signing of the contracts the Purchaser must pay to the Vendor at least 20% of the total value of the property. The remaining sum is paid according to the terms and conditions agreed upon by both parties.

2. SPECIFIC PERFORMANCE

The contract, must be duly signed and stamped within 15 days of signing, and should be lodged at the Land Registry Office within 60 days of signing. This is a safety measure, blocking the property and, consequently, not allowing the Vendor to re-sell to anyone else and hence safe guarding the Purchaser until the Council of Ministers’ application has been submitted and approved for purchasing immovable property in Cyprus.

3. APPROVAL OF THE COUNCIL OF MINISTERS

As mentioned above you are allowed to buy a number of immovable properties according to the new law passed by the government. But for each property that you wish to purchase you have to submit an application to the council for approval on all counts.  This law has been enforced until the year 2007, after that they will review and act accordingly.

This procedure has to be done and submitted within 60 days of signing a purchase agreement.  The Purchasers are however legal owners of the property according to the contract law.

You will require to submit

a) A bank reference
b) A character reference and controls issues such as criminal records,
c) That the land size is within the required limits,
d) And confirmation of the amount of funds that will be forwarded to Cyprus to pay for the property.
The whole procedure takes up to 6 months and over but, in the meantime, there are no restrictions on taking possession of the property during that time.

The following should be considered :

a) Should approval not be granted, you can re-apply.
b) Should approval not be granted, you have 33 years in which to sell your property (this only applies to certain nationalities and excludes all EU citizens).
c) You can live in the property from the time stipulated in the contract – prior to the Councils granted approval.
d) You are allowed to re-sell your property during this time.
e) This does not affect inheritance rights.
f) No UK citizen has ever been refused approval, exemptions apart; it is a form of control only.

4. PAYING FOR YOUR PROPERTY

You are required to pay for your property from external funds. Personal cheques from local accounts, bank drafts, automatic bank transfers. Deposits on securing properties up to EURO 3.000 - can be paid by credit card.