The Legal 500

Cyprus's strategic location in the eastern Mediterranean at the crossroads of Europe, Asia, the Middle East and Africa, its reliable and transparent legal system, combined with its membership of the EU, its excellent infrastructure coupled with reliable communication with all parts of the world, its relatively low cost of living, excellent climate and the friendliness and hospitality of its people, are just some of the factors that make the island attractive to foreign investors.

Introduction 7-8

Cyprus 7

Foreign investment in immovable property 7

Price of land 8

Legal assistance 8

The Republic of Cyprus has introduced a fast track procedure allowing high net worth individuals to acquire a permanent residence permit on an accelerated basis. Third country nationals who purchase immovable property in Cyprus for €300,000 or more as their own residence and who can demonstrate an adequate secure income from abroad will be eligible to apply for a permanent residence card. Each case is examined on its own merits depending on the personal circumstances of the applicant. To be eligible for permanent residence third country nationals must demonstrate:

The Cyprus Parliament has made amendments to the laws relating to VAT and transfer fees on real estate with the objective of stimulating activity in the real estate market.

The Sale of Immovable Property (Specific Performance) Law allows purchasers who deposit a stamped agreement for the sale and purchase of immovable property in Cyprus with the relevant District Land Registry within specified time limits to obtain specific performance of the contract if the seller subsequently fails to cooperate.

Property amnesty laws amended

Two amending Laws, namely 33(I)/2012 (Town and Planning Law) and 34(I)/2012 (Streets and Buildings Law) were published in the Official Gazette on Friday 6 April 2012 which in effect extend the deadlines of the so called Property Amnesty, a series of measures to address the problems arising from delays in the issue of title deeds to property owners.  

Introduction 7-8

Cyprus 7

Foreign investment in immovable property 7

Price of land 8 Legal assistance 8

On 2 December 2011, following publication in the official Gazette, Law 156(I)/2011, the Law to Amend the Lands and Survey Departments (Fees and Charges) Law ("the Amending Law") came into force. The Amending Law will apply for six months and will expire on 2 June 2012. Its main provisions are as follows

The Acquisition of Immovable Property (Aliens) Law, Cap. 109 has been amended to align it with articles 45, 49, 56 and 63 of the Treatyon the Functioning of the European Union, which provide for the freedom of movement of workers and capital, freedom of establishment and the freedom to provide services across the EU.

On the 10th of October 2011 the Council of Ministers of Cyprus issued a new decision laying out the criteria and conditions for the granting of Cypriot citizenship by exemption, aiming to attract wealthy businessmen and foreign investors, who desire easier access beyond their borders. By virtue of the new decision the threshold values of the direct investments, entrepreneurial activities, and bank deposits have decreased considerably.

- Kinanis LLC

December 2011 – Property Division of Kinanis LLC

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The Cyprus Parliament has unanimously approved amendments to the so called Property Amnesty Laws, which were introduced earlier this year in order to address the problems arising from delays in the issue of title deeds to property owners. These laws, which streamline the procedure of applying for title deeds and remove unnecessary obstacles, came into force on 8 April 2011 and set various deadlines for applicants.

Andreas Neocleous & Co LLC has entered into an innovative project aimed at providing advice and assistance to businesses and individuals considering relocating to Cyprus.

Country Q&A

Realising the importance of immovable property matters for Cypriot and foreign clients dealing in land, Andreas Neocleous & Co has LLC established a specialist Real Estate and Property Department, in order to provide tailored services and achieve rapid and efficient results.

In 2007 the Central Bank of Cyprus reduced the amount that commercial banks in Cyprus were permitted to lend against the security of second homes to 60% of the property value. This step was taken in order to prevent commercial banks becoming over-exposed to the sector, following what the Central Bank saw as speculative demand. It was unpopular with commercial banks in Cyprus, who saw it as a restriction on their ability to compete against overseas banks.

This chapter is set out in a Q&A format and covers areas such as tangible movable property, intellectual property, commercial security, crossborder issues and much more.  It is reproduced with the kind permission of the publisher. 

Cyprus’s succession law reflects the cosmopolitan nature of the island itself. While the wording of the law and many of its provisions are unmistakably English, Cyprus succession law also enshrines the concept of forced heirship, usually associated with civil law and Islamic countries, and recognises the rights of widows of polygamous marriages. This article provides an outline of the law and the forced heirship provisions and suggests planning techniques that can be used to avoid any restriction on testamentary freedom.  This article appeared in the September 2007 issue of "Offshore Investment" and is reproduced by kind permission of the publisher.  Read more ...

Nowadays the world population is growing rapidly and so is the demand for land. Land is a finite resource and therefore its value worldwide is constantly increasing.

Increases in value are exacerbated by inflation and by the instability of the monetary systems and fiscal policies of advanced economies, making investment in immovable property more attractive. The great technological advances in communication, transportation and international trade has made investment in this field easier and more accessible than in the past.