Changes to the Law regarding the acquisition of property in Cyprus

Author: Multilysis Services Limited
Date: 2012-02-08
On 16.12.2011, the Immovable Property Acquisition (Aliens) (Amendment) Law No. 161 (1)/2011 has been voted. Therefore, the restriction concerning the acquisition of secondary residence by EU nationals as well as by companies registered under the Laws of an EU member state or a state party to the E.E.A etc under the Immovable Property Acquisition (Aliens) Law, Cap 109 is no longer applicable.
 
The restriction was related to the acquisition of secondary residence by nationals of EU Members States, who have no permanent residence in Cyprus, and also by legal entities which are incorporated under the Laws of an EU Member State or of a state party to the European Economic Area (E.E.A), which have their registered office, central management and control and/or principal office in a Member State or in a country which is member of the E.E.A.
 
It should be hereby noted that, according to Article 2 of the new Law, the Republic of Cyprus is a member of the E.E.A.
 
According to the provisions of the new amendment Law, citizens of Members-States who are nationals of EU and citizens who are nationals of a Contracting Party to the E.E.A. and legal entities incorporated under the Laws of an EU Member State, or a State Party to the E.E.A., which have their registered office, central management and control and/or principal office and status in an EU Member State or a State Party to the E.E.A. will not be considered as “alien”.
 
Thus, a company registered under the Laws of Cyprus, or a company registered in any other EU member state would not require the prior permit of the Council of Ministers in order to acquire immovable property in Cyprus and there are no longer restrictions in acquiring such property in Cyprus.
 
This new Law, has not changed the definition of a “member state”, in a way that the Republic of Cyprus would be included within this term (according to Cap 109, Cyprus is exempted from the definition of “member state”). Nevertheless, the Republic of Cyprus is included within the definition of the “state party to the E.E.A.”, since it is not specifically exempted. Thus, the discrimination that existed up until 16.12.2011 regarding Cyprus companies which were controlled by foreigners/aliens is not anymore applicable.
 
Regarding the control and/or check of the legal bodies which have not been established in Cyprus, this will be made by the Land Registry of each District. Any information is necessary for the confirmation of the existence, registration etc. of the legal body, its establishment within an EU Member State or to the E.E.A. and of its representation. This information should be submitted to the Competent Authorities of Cyprus.
 
Member-States of EU:
  1. Austria
  2. Belgium
  3. Bulgaria
  4. France
  5. Germany
  6. Denmark
  7. Greece
  8. Estonia
  9. United Kingdom
  10. Ireland
  11. Spain
  12. Italy
  13. Cyprus
  14. Latvia
  15. Lithuania
  16. Luxembourg
  17. Malta
  18. Netherlands
  19. Hungary
  20. Poland
  21. Portugal
  22. Romania
  23. Slovakia
  24. Slovenia
  25. Sweden
  26. Czech Republic
  27. Finland
 
States Parties to the E.E.A. (Other than EU Member States):
  1. Liechtenstein
  2. Iceland
  3. Norway
For more information on Changes to the Law regarding the acquisition of property in Cyprus.

Related content:

Office Address: 5 Amathountos street,
Pirilides Building, 4th-5th Floor,
3105 Limassol-Cyprus 51252, 3503