ul. J. Dąbrowskiego 70
tel: +48 22 854 01 77
fax: +48 22 854 01 80
Cyprus, the third largest island in the Mediterranean, has become a magnet for international buyers looking to invest in overseas property. The island’s convenient location, at the meeting point of three continents, with excellent air links to Europe and the Middle East, makes it highly desirable for investors, expats, retirees and those looking for a second home in the sun.
The Cypriot property market, is traditionally sustained by British buyers, about 47% of overseas sales. The second place have Russian buyers, now making up 38 per cent of foreign property acquisitions.
In order to stimulate the market government introduced some incentives to encourage overseas buyers to invest in Cyprus real estate market:
- possibility to gain a permanent residence permit (for non EU residents, who purchase property of at least 300,000 EUR)
- VAT reduction rate of 5% on new houses (instead of former 17%)
- legislation extended to include purchasers from non-EU countries, and those whose primary residence is not in Cyprus, but who are looking for a second home overseas.
The acquisition of immovable property in Cyprus by foreigners
Under Cyprus law, Cyprus citizens as well as EU citizens who have their permanent residence in Cyprus are allowed to acquire any property without any restrictions. The residential status is ascertained by the district offices and is obtained when a person resides in Cyprus for a total period of 185 days per year or more.
Foreigners and E.U. citizens who are not permanent residents in Cyprus, wishing to purchase immovable property in Cyprus, are obliged to adhere to special formalities and are restricted by certain regulations, which are aimed at the proper control of foreign investments, the protection of foreign investors, the implementation of the Exchange Control Restriction Law etc.
For more information:
The Cyprus Real Estate Agents Association (CREAA)