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Cyprus became a full member of the EU on 1ST May 2004 resulting in many changes for EU Nationals planning to purchase property in Cyprus:-

1. An EU National resident in Cyprus is allowed to buy as much property in Cyprus without restriction and does not need to obtain approval from any authority. To prove residency in Cyprus an EU National must apply to the District Administration for certification of his residency by presenting personally to the District Administration his passport and pink slip (residency), which has already been obtained from the Immigration Department, together with Euro 8.54 in cash.

2. EU Nationals who are not resident in Cyprus are permitted to buy as much land as they wish but are restricted to purchase one house or one apartment for which approval from the Council of Ministers is required.

3. In order to comply with the idea of free movements of people and goods certain restrictions have been lifted. Citizens of the EU may enter Cyprus without restriction even with only their National identity card, provided there is a photograph.

4. Exchange control restrictions are no longer in force and it is no longer necessary to prove that property was purchased from External Funds.

5. Cyprus Investment Policy is liberal and allows 100% foreign participation in all sectors of the economy, not only for EU Nationals but also for investors from third countries, unless otherwise stated in the legislation; e.g. The acquisition and development of land.

COUNCIL OF MINSTERS APPLICATION

For transfer of the property into an alien’s name, (EU Nationals who are not resident in Cyprus and Non EU National who is resident in Cyprus) permission from the Council of Ministers is required. The Council of Ministers has authorized the District Officers to grant approvals on its behalf. The criteria taken into consideration in the process of examining an application for the purchase of property include, inter alia, the applicant’s family status, financial situation, occupation, the purpose of acquiring the property, its location, etc. Approval is granted in all bona fide cases.

Applications for the acquisition of more than one residence in Cyprus are not approved, except under very exceptional circumstances.

COSTS FOR PURCHASING PROPERTY

The costs associated with the purchase of the property are as follows:-

1. Stamp Duty for the contract is Euro 0.15% per thousand up to a contract value of Euro 170,860 and Euro 0.2% per thousand in excess of Euro 170,860.

2. Euro. 1.71 for each copy of the contract.

3. Euro 1.7 for the deposit of the contract with the Lands Office. The Stamp Duty is payable when the contract is signed.

4. The purchaser will be liable to pay the following transfer fees for the property
acquired, when this is registered in their name at the District Lands office.
The fees are charged on the property’s market value at the date of purchase.

Value of Property Euro Transfer Fee Rate % on property value
Up to 85,430 3.0%
Euro 85,431 – 170,860 5.0%
Over 170,860 8.0%

Please note that the above transfer fee applies for each person. If the property is registered in two names you will pay lower transfer fees.
For example:-

Transfer fee of a property valued at Euro.130,000, provided such property is in one name the transfer fee will be:-

3% for the first Euro 85,430 = Euro 2,562
5% for Euro 85,430 to 171,000 = Euro 4,271.50
8% for Euro 51,258 Euro 4,100
Total Transfer Fee Euro 10,935

Should the property be in joint names the transfer fee will be:-

3% for the first Euro 85,430 X 2 = Euro.171,000 = Euro 5125,80
5% for Euro 51,258 = Euro 2,562.90
Total Transfer Fee Euro 7,688.71

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