selling property and bank restrictions

Questions about selling property
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amoda23
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Joined: 08 Aug 2013 14:59

selling property and bank restrictions

Post by amoda23 » 09 Aug 2013 11:24

Hello, I am new to this forum and this is my first question. I am a UK citizen and resident and have never lived in Cyprus, although my mother lived here and the property she lived in was in my name (I have the title deeds). She recently passed away and I wish to sell the apartment. Normally this would be a normal procedure, but with the recent bank restrictions will it be possible for me to transfer the sale money direct to my UK account?

many thanks,
Amoda



Nigel Howarth
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Re: selling property and bank restrictions

Post by Nigel Howarth » 09 Aug 2013 11:36

Hello Amoda - welcome to the forum and my condolences on the passing of your mother.

At the present time there are 'Temporary Restrictive Measures' in place limiting the amount of money you can take out of Cyprus. These are gradually being relaxed and you need to keep an eye on the latest position at the Central Banks website at http://www.centralbank.gov.cy/nqcontent ... =1&lang=en

However, if you sell the property to a someone with a bank account outside Cyprus then it is possible to complete the transaction without any money entering the country. Also, money deposited from abroad into a Cyprus bank account can be taken abroad without restrictions.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
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Nigel Howarth
Site Admin
Posts: 2295
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
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Re: selling property and bank restrictions

Post by Nigel Howarth » 09 Aug 2013 11:51

Hello Amoda

I've just picked up this bit of news from 'incyprus':

"A road map to end capital controls for Cypriots was announced yesterday but no clear timeline was given as to when those restrictions would be completely lifted.

Under the terms outlined by the Finance Ministry it could take a year or two before the free movement of capital – outside and inside Cyprus – is allowed.

The eurozone’s first and only capital controls were introduced in March as the banking system threatened to collapse as the Troika imposed harsh bail-in terms to warrant a €10 billion Cyprus bailout.

“The restrictive measures were enforced to ensure the stability of the financial system and to safeguard public order,” said a Finance Ministry statement yesterday.

“Cypriot authorities are committed to removing the restrictive measures and ensuring free movement of capital, as soon as conditions allow,” it added.

It said the Troika had agreed on the key principles that restrictive measures shall remain in place only for as long as it is strictly necessary.

And restrictive measures will be “gradually removed” through careful and prudent steps, so as to safeguard financial stability.

Under the agreed road map the priority is to abolish restrictions on transactions within the Republic to be followed by allowing free cross border movement of capital.

But the relaxation of measures is linked to specific milestones such as recapitalising the banking sector and post-resolution Bank of Cyprus restructuring.

“These are instrumental in rebuilding depositors’ confidence in the Cypriot banking system and help economic recovery,” said the ministry.

“The restrictive measures linked to the particular relaxation stage will be removed in a step by step process,” it added.

For increased accessibility of funds and re-establishment of the free transferability of funds within the banking system, a co-op restructuring plan must be submitted to the European Commission and recapitalisation of Hellenic Bank completed.

Re-establishing free movement of capital within the Republic is conditional on completion of the co-op mergers – expected to begin in September and be completed in March 2014 – and tangible progress in the implementation of Bank of Cyprus’ restructuring plan.

And the abolition of all restrictive measures relating to the transfer of funds outside the Republic is linked to progress in the 2013-2016 adjustment programme combined with restitution of depositor confidence."

Source: http://www.incyprus.com.cy/en-gb/Top-St ... 4342/36544

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
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amoda23
Posts: 5
Joined: 08 Aug 2013 14:59

Re: selling property and bank restrictions

Post by amoda23 » 10 Aug 2013 14:05

I've been mulling over the ramifications of all the info you have posted Nigel, which I appreciate very much by the way. This occurs to me .. IF the property is sold to a buyer in Cyprus and I cannot have the sale money transferred to my UK account due to the restrictions still being in force, does this mean I would have to open a Cypriot bank account in order to receive the money? Of course, this may all change when restrictions are lifted, but in the meantime .. ??

thanks again,
Amoda



Nigel Howarth
Site Admin
Posts: 2295
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: selling property and bank restrictions

Post by Nigel Howarth » 10 Aug 2013 14:59

Hi Amoda

It depends where the money comes from. If the money comes from overseas, it can be repatriated immediately. If it comes from Cyprus you could either leave it in you lawyer's client account or open an account yourself.

Regards,


Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news

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