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WHO IS ELIGIBLE TO BUY PROPERTY IN CYPRUS?

In comparison to other European countries, the procedure of purchasing property in Cyprus is quite simple

There are no limits on foreigners purchasing property in Cyprus, as long as the right documents is provided and the applicant does not have a criminal background.

Non-Cypriots must apply to the Council of Ministers for authorization to purchase property, and granting permission is almost certain if they meet the following criteria.

Taking up residence in freshly purchased residences before authorization is obtained is not restricted. It’s also worth noting that permission to purchase a property in Cyprus is only allowed for personal use; renting out your property for profit is prohibited.

  1. EU residents can buy property in Cyprus without any restrictions as long as they commit to living in the country for the next five years.
  2. Permanent inhabitants of the EU do not required to apply for permission to purchase property.
  3. EU citizens who are not residents of Cyprus must obtain authorisation from the Council of Ministers before purchasing property.
  4. Non-EU citizens are permitted to purchase up to 4,014 square meters of land or one house or apartment.
  5. Offshore businesses can buy real estate for their operations or houses for their overseas personnel.
  6. EU legal organizations with headquarters in Cyprus and offices established in Cyprus do not require approval to purchase real estate.
  7. To purchase any property or legal entity, Cypriot legal entities managed by EU nationals outside the country must obtain authorisation from the Council of Ministers.

The approval of the Council of Ministers is required

Requirements

  • It is necessary to apply in person or through a lawyer.
  • Completed application form
  • Personal and financial history, as well as information about your present residence
  • Proof that you have never been convicted of a crime in your home country
  • The specifics of the property that is being purchased
  • Information about the current owner or developer
  • Contract of sale and payment terms
  • buyer’s passport photocopy

Non-residents who have purchased property in Cyprus are not permitted to rent it out to tourists for a property. To put it another way, permission is granted for your own personal residence, but you are not permitted to become a landlord and rent out your residence on a short-term basis. The only legal option to get around this is to register your property as a holiday residence with the Cyprus Tourism Organisation (CTO). This is a lengthy and demanding process, and certain rules and regulations must be followed in order to be considered for registration by the CTO. Applications can only be made on detached homes, and if this is what you want to do, you should hire a lawyer because whether you acquire a permit or not, you will still have to pay for the procedure, which may or may not result in nothing if your property turns out to be unfit. If your home is authorized, you must also consider the expense of renting it out, as you will be subject to income tax and a monthly charge to the CTO of 3% of the estimated income.

You can, however, rent your property to cyprus on a long-term basis. Even if you receive your rents from outside of Cyprus, the revenue you receive from renting out your property will be taxed in Cyprus.

Despite the fact that renting out your property is unlawful, many people appear to be letting friends and family to stay in their homes while they are away. Nobody can say if they pay for the use of the house, but no one can prevent you from providing the keys to friends or family. This is how many people get away with renting out their homes without facing legal consequences. The Cypriot government does not enforce this issue severely because it does not want to discourage possible investments in Cyprus, and it is also not such a bad thing to have visitors staying in these houses on a short-term basis because they bring in much-needed cash.

Residency and visas

You will be entitled to stay if you were a legal resident of Cyprus or if you can establish that you arrived in Cyprus before January 1, 2021.

You will have a MEU1 or MEU3 residence document if you registered as a resident before January 1, 2021. A MEU2 will be issued to non-EU family members. In accordance with the Withdrawal Agreement, the Cypriot government introduced a new residency permit for UK nationals and their family members on January 1, 2021. You have the option to receive this new document if you are registering for the first time.

If you have been a legal resident of Cyprus for the following periods of time:

You will be eligible for permanent residency and a 10-year renewable residency document after five years (MUKW3)

You will be eligible for a document with a 5-year validity if you have less than 5 years (MUKW1)

A MUKW2 document will be available to non-EU family members.