HOW BREXIT IS AFFECTING PURCHASING A PROPERTY IN CYPRUS - PART 4

IN THE fourth and final PART OF OUR SERIES WE ARE EXPLORING HOW BREXIT is currently affecting property prices. 

How Brexit Is Currently Affecting Purchasing Properties In Cyprus

While the Brexit will not happen until the end of 2020, the real estate market in Cyprus has experienced a slight increase in the number of buyers as most British nationals are skeptical about the outcome of the Brexit talks. First, the idea of buying a property worth at least €300,000 + VAT (Value Added Tax) to apply for permanent residence in Cyprus has made the real estate market in the country to experience a slight increase in value. Most British nationals are skeptical about how the talks will end and would not want to lose the freedom of traveling. This has moved them to invest more into the country to enable them to apply for a PR card. Interestingly, British nationals are able to acquire a permanent residence without having to relocate to the city. They simply have to invest the amount mentioned above to enable them to get the PR card.

Statistics have revealed that the property market of Cyprus has increased drastically since the June 2016 Brexit referendum. According to reports, the price of properties in the country experienced a 1.82% increase in the fourth quarter of the year 2018. Some of the main cities that experienced this increase in property purchase include; Nicosia, Limassol, Larnaca, Paphos, and Farmagusta Paralimni. One of the interesting facts is that these are the major tourist locations of British nationals when they visit the country.

Local magazines in the country are of the opinion that the increase in the purchase of properties the country is experiencing right now can be linked to the Brexit situation. The idea that British nationals are able to get permanent residence when they buy a property for €300,000 or more in the country. British nationals seeking to own properties in Cyprus right now will have to make the move fast as the Brexit talks would have concluded before the end of 2020.

As the Brexit talks intensify, most UK nationals are becoming more skeptical of the exit not taking place. This has raised concern amongst these citizens and has made them eager to buy and own properties in Cyprus to enable them to enjoy the benefits that other EU citizens would enjoy.

The Interior Minister of Cyprus sensing the need to address issues on the rights of British nationals in the country once the Brexit deal goes through has published a guide. According to the guide, it has been revealed that UK nationals as well as their families that have been residents in the country for about five years before the end of the year 2020, will be eligible to apply for a permanent residence. This simply means that all UK nationals that have lived in Cyprus for five years before December 2020 may apply for permanent residence in the country.

In addition, the guide states that UK nationals as well as their family members who are current residents in the country but have not been residents for about five years by the end of 2020, will be eligible to reside in the country. According to the guide, they will be able to stay in the country until they have reached the 5-year threshold and in that time are eligible to apply for permanent residence. On the other hand, Cypriots of British origin or British nationals that have been granted permanent residence prior to Brexit will continue to work and live in the country with access to all the many benefits citizens enjoy. This is made possible by the withdrawal agreement or the free movement principle that Theresa May agreed to.

In other words, UK nationals that have moved to the country before the end of the year 2020 which the Brexit is expected to take place will have to apply for a permanent residence, and this can be done by simply buying a property worth at least €300,000+VAT or more. In addition, the British will be classified as "third-country nationals" meaning that they would be able to travel but not work in Cyprus without applying for a work permit. This is simply because of the four freedom principle stipulated by the European Union.

Copyright. C.N. Property Canvas Ltd.

Author: Christos Nikolaou

BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.

Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “HOW BREXIT IS AFFECTING PURCHASING A PROPERTY IN CYPRUS - PART 4” and is a certified advance negotiator.