Cyprus is considered as the ideal location for either a permanent or holiday home, but since Cyprus became a member of the European Union, -1/5/2004 it has placed itself on the map of Europe and other countries as far as Asia, as a tourist resort. The booming property market, with abundance of information about property purchase which compares no only favourably with other tourist resorts but offers investment opportunities will definitely become a topic for discussion!

Whilst deciding that Cyprus 'is the place' is easy - think great weather, good food and wine and a slower pace of life - where and what to buy is definitely a harder decision!
In Cyprus a total of nearly 70,000 properties are owned by foreigners (a study by CTO have placed the number of properties owned by foreigners- non Cypriots- to 129000 approximately)and the demand for properties remains buoyant, especially since a number of innovative projects including new golf courses and marinas have been announced.

By Nationality we have 70% British, 13% Russians and 7% Greeks from Greece. The purchasing power of those with intend to purchase property is: 33% up to the value of £40000, 28% up to £80000 and 18% much more. The age bracket of these people is mainly between the ages of 45 to 54 years old. Cyprus appeals however, to people from all walks of life and all ages and as you read this, stop awhile and glance out your window because if it is grey and rainy... just think, Cyprus enjoys more than 340 days sunshine each year... how about considering a hideaway on this comfortable Mediterranean Island?

ΕU persons permanent residents in Cyprus are allowed to purchase any kind of property (house – apartment – plot – land)  without any restrictions just as local persons.

Eu citizens whose are not permanent residens in Cyprus are allowed to purchases any immovable property land , plots  without any restriction. They also can by one house or apartment but there is a restriction for a second house or apartment. permission for a second house or apartment has to be granted by the Cyprus government. This restriction for a second home will be lifted from the1/5/2009. After this date, all EU citizens permanent residents or not will be allowed to purchase whatever property they wish: just as locals. However, since 1/5/2004 professional people can work, stay and invest in Cyprus property, without any restrictions.

Aliens (see * below) however are given permission to acquire only one of the following:
(1) One apartment
(2) One House
(3) A building plot or land up to three donums (4,014m2).

Offshore Companies may also acquire premises for their business (no limit on the extent) or residence for their foreign employees, provided the house is registered in the employee's name.
In order to transfer an immovable property in an alien's name permission by the Ministerial Council - and lately extended to the District Officers - is required. The permission is relatively easy to be obtained provided that the property is not intended for commercial use.
In certain cases, however, as in the direct investment sector, an approval for acquisition of property for commercial purposes could be granted if the particular project would contribute to the targets/policy of the Government.

For legislation purposes acquisition:
(4) Transfer of registration.
(5) Long lease more than 33 years.
(6) The acquisition of shares in a company, in the case that such an acquisition results in the company becoming alien-controlled.
(7) The establishment of a trust or any type of set-up, which is connected with the ownership of real estate for an alien's benefit.
Any registration of property not complying with the law is invalid. As a
general guide, the following points for property acquisition should be
noted:

(8) A foreigner can buy a house for his own use only. In the case of a long established individual who has business i.e. offshore company etc or residing in Cyprus, a permit to buy another house in other parts of Cyprus i.e. near the beach or up the mountains could be available to them.

(9) A foreigner can buy a piece of land maximum 3 donums. A permit to buy land outside a development area is likely to be refused, (which does not apply in the case of an alien purchasing a house in the same area).

(10) A permit will be refused if an alien acquires a share in a property.

(11) A couple (huspand and wife) can only purchase one house, not one each (12J In the case of foreign companies, they can buy/build their own offices only. No permit will be granted for a residence purchase, unless this is registered in the name of the company director, and he is the one that must submit the application.

(12) A house cannot be bought in joint-ownership except between husband and wife.

(13) In the case that a foreigner would like to construct a building, this cost should be paid in foreign exchange.

(14) In granting the permit the Government may impose a time limit to affecfthe transaction/building of the property. Such a limit may however be extended on application, depending on the circumstances. A three-year period is considered as maximum but this can also be extended.

(15) If a foreigner wants to rent a property for a period of more than 33 years then he is obliged to submit an application for approval to the Ministerial Council or, io the District Officer of the area the required
property is situated.

(16) A foreigner can sell his property and buy another. Any legitimate repeat purchaser will be granted a permit.

(17) A foreign purchaser may let his property for periods exceeding 28 days to a resident of Cyprus. This does not apply to offices.

(18) A purchase/lease contract regarding real estate is valid even if the Ministerial Council or the District Officer rejects the foreigner's request. Therefore, it is recommended that the contract include a provision for such an event so as to secure a refund or other remedy to cover such an unlikely occurrence. The time needed to obtain an answer from the Ministerial Council, provided that all documentation is satisfactory, is approximately 3-4 months. As a general rule, all foreigners are permitted to acquire house/business premises in Cyprus, provided they have:

(20) No criminal record in their own country or Cyprus.

(21) The resources to support themselves in Cyprus, (Approximately an
annual Cy£12,000 per couple is sufficient).
Companies with a shady past, uncertain ownership, doubtful business etc are not seen favourably.

* The definition alien by law is any person who is not a citizen of the Republic (whether a resident or not), including an alien-controlled company, but it does not include aliens of Cypriot origin or the alien wife of a person who is a citizen of the Republic of Cyprus.