Nationality of buyers in Cyprus

Cyprus is a lenient country when it comes to real estate laws forbidding non-nationals from purchasing properties within a province. The country’s leniency has attracted dozens and hundreds of international buyers from different facets of the world. This sudden rush to purchase landed properties in Cyprus comes as no surprise, as the country’s “Golden Citizenship” program continues to entice international investors across the world.

Who can buy properties in Cyprus?

All things considered, there are no restrictions on who can buy a property in Cyprus. The country is open to foreign investors and to buttress this commitment, Cyprus has reduced tax on pensions and income for ex-pats. Now, foreigners working in Cyprus can enjoy the first €19,500 of their annual paycheck tax-free. Thus, giving foreigners a chance to save up for their dream home or landed property within its province.

Cyprus also rolled a new immigration program that allows foreigners to gain residency by investing in real estate. As a result, non-nationals that wish to live but not work in Cyprus can buy a piece of new real estate worth at least €300,000+VAT or more, and be instantly endowed with a permanent residency. Besides, the country has made a lot of strides in infrastructure to provide a cosmopolitan destination that transcends top global hotspots. Among these infrastructures are the casino resorts (promises to be the largest in Europe), the yachting services, golf course, private jet hire, and the DP world cruise terminal.

However it is worth noting that Non-EU nationals are allowed up to 2 properties in their names while EU naitonals can own unlimited number of properties. Non-EU nationals who are looking to acquire more than 2 properties can do so by forming a legal entity based in Cyprus.

Purchasing Property in Cyprus as a foreign national

While it is almost expected that the purchasing procedures of immovable properties in Cyprus will differ slightly depending on the buyers’ nationality, the overall process is quite straightforward. However, if you don’t exercise caution while purchasing the property, you may expose yourself to real estate pitfalls. We recommend that you only purchase properties whose titles deeds are readily available.

It is customary for developers to take out a mortgage on Cypriot properties or lands. Thus, if you purchase a property from a developer, and there is a loan, claim, or mortgage on it. Odds are you’ll be responsible for the payment of the mortgage if the said developer is declared bankrupt.

Where to buy property in Cyprus as a non-national

There are many great places to buy property in Cyprus, but the most renowned of the lot is Paphos. The luxury homes and resorts in this area have attracted many foreigners to Cyprus, and as such, it remains the premier destination for EU and Non-EU nationals that wants to live and work in Cyprus. You can also consider properties in Limassol, Nicosia, Famagusta, and Larnaca. The illegally occupied side of Cyprus from Turkey is not a place where you can purchase and own a property legaly. In case you are considering a property in occupied Cyprus, you should know that property ownership is highly disputed. The country still considers the title deed held by displaced persons in 1974 valid. Therefore, if you buy property from a developer and the 1974 titleholder or heir comes to claim the property, you’ll forfeit the said property.

Conclusion

Cyprus is a great country for citizens and non-nationals, and it holds amazing real estate opportunities for all.

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 “Nationality of buyers in Cyprus” and is a certified advance negotiator.