Foreigners Investing in Cyprus Property

Investing in Cyprus real estate can be highly rewarding, but it requires careful legal, planning, and tax due diligence. Investors should always seek professional advice before choosing a property, to understand their options, obligations, rights, and risks, especially for multi-unit developments or off-plan properties.

• Key Considerations for Buyers:

1. Financial Obligations: When acquiring property, buyers must account for financial obligations including stamp duty, transfer fees (if applicable), community council receipts, and VAT. The standard VAT rate is 19%, with a reduced rate of 5% for primary residences under specific conditions.
2. Permission to Acquire Property: Foreign nationals, including non-EU investors, foreign companies, and companies controlled by foreign nationals, must obtain permission from the local District Administration before acquiring immovable property in Cyprus. Even if there is a valid contract for a foreigner to acquire property, the foreigner still needs the permission under the law before the acquisition is valid. However, for contracts submitted with the Land Registry in line with the requirements of Cyprus law, are not affected by the missing permission for specific performance purposes.
3. Permanent Residency Permit: Non-EU investors can benefit from this program by investing, among other, a minimum of €300,000 in real estate and demonstrating an annual income from abroad of €50,000. If granted this permit, non-EU investors are entitled to apply for citizenship after eight years of residency in Cyprus.

Our Role

We help investors throughout the entire property acquisition process.

Based on the general characteristics of each case, our team at A. KOULOUNDI & CO. LLC provides tailored guidance and support prior to and throughout the transaction.

This includes:

• general legal advice
• verifying that the property has a separate, transferable title free from encumbrances or hidden mortgages
• reviewing planning and building permits and drafting or reviewing Contracts of Sale.
• assisting with stamp duty payments, stamping of the Contract, submission to the Land Registry for specific performance purposes
• managing escrow, tax registration, and municipal filings
• advise on residency matters, company structuring to act as buyer and other aspects critical to ensuring compliance and securing a smooth, risk-mitigated investment process.

Contact Anna Kouloundi at anna@kouloundilaw.com for more information and assistance.