Legislation on the Acquisition of Immovable Property by Foreigners in Cyprus
The acquisition of immovable property by foreigners in Cyprus is governed by the “Acquisition of Immovable Property (Aliens) Law” (Cap. 109). This legislation outlines the conditions, restrictions, and procedures applicable to non-Cypriot individuals and legal entities seeking to own property within the Republic.
Who is Considered a “Foreigner”?
Under Cypriot law, a foreigner is defined as any individual who is not a citizen of the Republic of Cyprus. This includes:
• Non-Cypriot individuals,
• Foreign companies,
• Trusts benefiting foreign persons.
• However, certain categories are exempted, such as:
• Foreigners born in Cyprus, and
• Nationals or legal entities of other European Union (EU) Member States.
Restrictions on Property Acquisition
Foreigners are not permitted to acquire immovable property in Cyprus without prior written approval from the Council of Ministers. Even with such approval, restrictions apply concerning the extent and nature of property that can be acquired. These limitations include:
• Maximum land area generally limited to two donums (approx. 2,675 square meters or 0.66 acres), except in special cases (e.g., for private residence or business premises).
• Usage purpose: Acquisition must relate to personal residence or professional establishment.
• The law also incorporates town planning and zoning regulations, which may impose further restrictions such as:
• Minimum plot size,
• Permissible use (e.g., residential, commercial, agricultural),
• Limitations within specific geographic zones.
• Importantly, the provisions of Cap. 109 do not apply within the Sovereign British Base Areas (SBAs).
Acquisition Procedure & Prerequisites
Foreign nationals (particularly those from third countries) and legal entities under their control must apply for permission through the relevant District Administration Office.
Required Application Form:
Form COMM 145 must be completed and submitted with all supporting documentation.
Applications are typically processed within 2–3 weeks, and no government fee is charged.
Property a Foreigner May Acquire:
A land plot up to 4,000 square meters for constructing a private residence.
Up to two residential and/or commercial units, such as:
• One apartment and one office (up to 250 m²), or
• One apartment and one retail store (up to 100 m²).
Note: In the case of a married couple, the permit is granted jointly.
Required Documentation (for individual applicants):
• Completed Form COMM 145
• Topographical plan of the property
• Copy of title deed
• Building permit or plot division permit (where applicable)
• Stamped sale agreement
• Architectural floor plan
• Proof of the applicant’s financial standing
• Valid passport(s) (for both applicant and spouse)
• Marriage certificate (with official translation, if necessary)
• Valid residence and/or work permit in Cyprus
Additional Documents for Companies:
• Certificate of Incorporation
• Certificate of Directors and Shareholders
• Memorandum and Articles of Association
• Audited financial statements
• Proof of social insurance contributions for local employees (if any)
• Passports of shareholders and their spouses
Key Legal Notes:
This legislative framework applies only within the Republic of Cyprus and not within the British Sovereign Base Areas.
Exemptions may apply to:
• EU citizens, and
• EU-registered legal entities, in line with the principles of free movement and establishment under EU law.
Final Remarks
The acquisition of immovable property by foreigners in Cyprus is subject to a clearly defined and regulated legal process. Prior approval from the competent authorities is mandatory, and due diligence is essential to ensure lawful acquisition.
We strongly recommend consulting a licensed real estate attorney or legal advisor in Cyprus to guide you through the necessary procedures and ensure full compliance with all legal obligations.
For reference, you may access the full law here.
https://www.cylaw.org/nomoi/enop/non-ind/0_109/full.html
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