Foreign Ownership Rules in Cyprus Real Estate: Complete Guide
Discover the rules and restrictions for foreign property ownership in Cyprus. Learn the differences between EU and non-EU buyers, approval processes, and inheritance rights.
Foreign Ownership of Property in Cyprus
Foreign ownership of property in Cyprus is subject to specific rules and restrictions. While the island is welcoming to international investors, the law distinguishes between EU citizens and non-EU citizens.
Ownership Rights for EU Citizens
EU citizens enjoy almost the same property rights as Cypriot nationals:
• They can purchase unlimited residential and commercial properties.
• No restrictions on land size or property type.
• Right to rent, lease, or resell without limitations.
• Inheritance rights are fully recognised.
Ownership Rights for Non-EU Citizens
Non-EU citizens face restrictions designed to regulate foreign ownership:
• Limited to purchasing one apartment, one house, or one plot of land (up to 4,014 sq.m.).
• Must obtain approval from the Council of Ministers.
• Property must be for personal use, not large-scale commercial purposes.
• Additional purchases may be possible through company structures.
The Approval Process for Non-EU Buyers
Non-EU citizens must follow a formal process:
1. Submit an application to the District Office of the Council of Ministers.
2. Provide proof of financial ability and clean criminal record.
3. Declare intended use of the property.
4. Wait for approval (processing may take several months).
5. Contract of Sale is lodged with the Land Registry during the process.
Using a Cyprus Company to Purchase Property
One way non-EU investors expand ownership is through Cyprus-registered companies:
• Companies registered in Cyprus may purchase multiple properties.
• Foreign shareholders can control the company.
• This method is common for investment and rental projects.
Checklist for Foreign Buyers
1. Determine if you are an EU or non-EU buyer.
2. Verify eligibility based on property type and size.
3. Engage a lawyer to handle Council of Ministers applications.
4. Consider using a company structure for multiple purchases.
5. Confirm inheritance rights and tax implications.
Case Study: Successful Approval
In 2019, a Canadian buyer applied to purchase a villa in Paphos. The buyer submitted all required documents, including financial statements, and received approval within four months. The property was later rented out successfully within the family’s rights.
Case Study: Ownership Dispute
In 2011, several non-EU buyers attempted to purchase multiple plots of land without using a company structure. Their applications were rejected by the Council of Ministers, leading to contract cancellations and legal disputes.
FAQs on Foreign Ownership in Cyprus
Q: Can non-EU citizens buy more than one property?
A: Not directly, but through a Cyprus company, multiple properties may be acquired.
Q: How long does Council of Ministers approval take?
A: Typically 3–6 months, though delays are possible.
Q: Can property be inherited by non-EU heirs?
A: Yes, inheritance rights are protected under Cyprus law.
Q: Do foreign buyers have to pay higher taxes?
A: No, foreign and local buyers are subject to the same tax rules.
Q: Are there restrictions on agricultural land?
A: Yes, agricultural land is subject to stricter purchase limits for non-EU citizens.
Final Recommendations
Foreign ownership of property in Cyprus is possible and encouraged, but buyers must understand the legal framework. EU citizens enjoy almost full ownership rights, while non-EU buyers must comply with restrictions and approval processes. Always seek professional legal advice to ensure compliance and avoid pitfalls.