A question frequently asked by international investors is whether non-EU citizens face licensing requirements or special regulations when purchasing property in Cyprus?
Individuals and corporate entities, regardless of EU membership, are generally free to acquire real estate in Cyprus. However, non-EU buyers should be aware of specific restrictions, most notably the need to secure approval from the Council of Ministers before the property title can be officially registered in their name.
Legal Framework: Cap. 109
The Constitution of the Republic of Cyprus guarantees every individual, the right to own, enjoy, and transfer both movable and immovable property. This protection applies to EU and non-EU nationals alike.
The Immovable Property (Acquisition by Aliens) Law, Cap. 109, governs property acquisitions by non-EU citizens in Cyprus. Originally established during British colonial rule, the law was designed to prevent excessive foreign ownership from negatively impacting the local economy.
Key Restrictions for Non-EU Buyers
- Cap. 109 does not apply to citizens or companies of the EEA (EU plus Iceland, Liechtenstein, and Norway).
- Non-EEA nationals must obtain Council of Ministers’ approval to complete property purchases.
- Typically, permission is granted for purchasing a primary residence or land up to three donums (approx. 4,000 m²) for residential use.
- The Ministry of Interior has also allowed acquisitions of a second home or a combination of one residence and a commercial property.
- Until the official title is transferred, the buyer may occupy and use the property.
- International companies can acquire both residential and commercial premises for their staff.
Transactions Covered:
Cap. 109 applies to:
- Freehold property acquisitions
- Leases exceeding 33 years
- Acquiring shares in Cyprus companies that own real estate
- Future Property Disposal
Once the title is registered, there are no restrictions on selling or transferring the property. Inheritance or trusts do not require Council of Ministers’ approval.
Today, Cyprus actively encourages foreign investment in real estate, making these legal formalities largely straightforward. Notably, Cyprus law offers freehold ownership, allowing full registration of property in the buyer’s name for life, unlike long-term leasehold systems in some countries.
Contact Us
For professional guidance on purchasing property in Cyprus, including eligibility, Council of Ministers’ approvals, property registration, and structuring your transaction, contact our legal team who can help ensure a smooth acquisition process, proper documentation, and full compliance with Cyprus property laws.
☎️ Tel: +357 22 622 262
📧 Email: info@paraschou.com.cy
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