Cyprus Information > Acquisitions
Acquisition of immovable property by aliens (non EU members)
The Cyprus Real Estate Market
The Cyprus Real Estate market has two main demand sources. The local and the foreign market. The foreign market comprises by approximately 60% by the British and 30% by Russians and the rest 10% by other nationals. These percentages tend to change in favour of the Russian market with a reducing British demand due to the global economic situation.
Our 2012 Expectations
We provide for your information the following statistical analysis, which may show the trend, which shows the average budgets. For house purchasers.
Real Estate prices between the period of 2003 – 2008 were increasing at an average rate of 12% - 18% p.a. depending on location, but the global economic recession has affected the local property market as well. Demand has been reduced causing local property prices to fall. In general real estate prices in the tourist area, have reduced by around 30%-35% and in residential areas by approximately 20%-25%. Bargains are now evident and especially prices from resales, primarily offered by foreign buyers – mainly British are evident.
Indicative of the situation are the following statistics based on sales contracts:
This state of the market is expected to continue over the next two foreseeable years. After this period as supply is taken up so will prices begin to improve.
Cyprus has proved to be an increasingly
popular place for doing business, retirement and/or for the acquisition of holiday homes by
foreigners. Demand, which is continually increasing [save the recession], is
forthcoming mainly from European Countries, mainly
eastern block countries, whereas there are signs of an emerging demand from China
ex eastern block countries, whereas there are signs of an emerging demand from China recently.
The upsurge of demand for property by foreigners is attributed to many factors including the relatively low cost of living and its high standard [as well as the low crime rate]. In addition, the unique hospitality of the local population, the attractive climate, the increasingly important role of safety and security, have played an important role. The recent measures for permanent residence permits and passports with recent estate acquisition has also its affects where as the recent tax system in Europe is a drain in it self for business.
Demand and market activity has caused local property
values to show a steady and at times sharp appreciation, especially over the
last years up to the end of 2008. Good properties especially resales are
still abundant and local property prices are still much lower than those of
other European countries such as
Cypriots and E.U members [and companies] are allowed to purchase real estate property without any restrictions.
Foreign people, non-E.U.members [Aliens], however, are only given permission to acquire one of the following:
Offshore entities may also acquire premises for their
business (no limit on the extend) or for the residence of their foreign
employees provided the residence is registered on the employees' names. For
the transfer of real estate on an alien's name, the
of the Council of Ministers is required (now the District
This permission is obtainable by all bona fide cases, provided that the property is not intended for commercial exploitation. In certain cases, however, the Council of Ministers will grant the approval for acquisition for commercial purposes if the particular project will enrich tourism and employment. E.U. members are exempted from such restrictions and are treated as locals as from the 1st May 2004.
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