Based on the UK system, the Cypriot legal system is relatively straight-forward for property purchases as compared with France and Spain.. Because all transactions and legal documents are written in English, it makes understanding the details, such as payment terms, etc. much easier. Below you will find some useful legal information and details that should help you to understand the property purchasing process in Cyprus.

i) Solicitor
As with any property purchase, it is important to pick your solicitor carefully, usually on the recommendation of other purchasers. We would be happy to provide you with a list of experienced and trusted conveyancing solicitors, but you are of course free to make your own selection.

ii) What Can I Buy ?
There is currently a restriction on the amount of property and/or land that non-Cypriot investors can purchase. This includes either:

• 1. An existing (resale) apartment or house on a plot of land not exceeding 3 donums in size (4,012.5 sq. metres / approximately 1 acre), or;
• 2. A building plot of land not exceeding 3 donums in size (4,012.5 sq. metres / approximately 1 acre), or;
• 3. A planned new build house on a plot not exceeding 3 donums in size (4,012.5 sq. metres / approximately 1 acre).
  A couple (husband and wife) can only purchase one property, there is not a double allowance.

A new bill was passed when Cyprus joined the EU on 1 st May 2005, allowing EU citizens to purchase two housing units. After a transition period of five years (May 2009), there will be no restrictions on acquisitions of property by EU citizens.

iii) Permission To Buy
In order to safeguard themselves against foreigners with no means of financial support from entering the country, Cypriot authorities require a "permission to buy" document. This is a simple procedure that can be arranged by your solicitor. Proof of investments and or a nominal annual income / pension is required. Once the contract of sale is signed, the "permission to buy" application is can be processed, which usually takes a few months to complete. However, you are free to take up possession of your property during that period. There are bound to be changes to this procedure now that Cyprus is a member of the EU, but as yet, there have been no developments.

iv) Ownership & Title Deed
The Land Registry in Cyprus provides a legal instrument known as "specific performance", which is extremely useful to new purchasers and forms part of the Contract of Sale. It protects the purchaser's ownership rights until the title deeds are issued. Because the Contract of Sale is in the hands of the Land Registry and cannot be withdrawn by anyone, the property is legally registered under the law as unequivocally belonging to the purchaser and cannot be leased, sold, transferred or mortgaged without the consent of the purchaser - only the purchaser can alter the status of property. "Specific performance" comes in handy for those purchasers who want the security that knowing their purchase is safe brings, but who are happy to delay the issuance of Title Deeds in order to avoid paying transfer fees.

The transfer of the Title Deed for the property to the purchaser can only be affected once the following has been completed:

• 1. permission has been obtained from the council of ministers for the purchaser to own the property;
• 2. The Central Bank of Cyprus confirms that receipt of foreign funds has been made;
• 3. The District Land Registry Office has processed any necessary plot divisions on the development and is ready to issue the appropriate Title Deed. 
• v) Residency
  Work and/or residency permits are required for EU citizens who plan to stay in Cyprus for more than 90 days per year. The application process is relatively straight-forward but may take a while, but your Solicitor will arrange all matters for you. It is permissible to take possession of a property and/or complete a Contract of Sale in regard to a property if you do not yet have the required residency permits. The legislative and administrative processes regarding residency permits are currently under review in accordance with the planned EU accession, and it is envisaged that for current EU citizens, such permits will not be required.

IMPORTANT

The information provided above should be used as a guideline only, and can vary with regard to individual circumstances. Please contact us for further information or advice.