UK Citizen - status for property purchase in Cyprus

General questions & discussions on Cyprus property related matters
Post Reply
ajaxuk
Posts: 1
Joined: 31 Dec 2020 14:30

UK Citizen - status for property purchase in Cyprus

Post by ajaxuk »

Hello

I am a UK citizen but a temporary resident in Cyprus (yellow slip) since 2018 and now looking to buy a property.

My understanding of the rules applying to EU Citizens is that they can buy freely with no restrictions. However, non-EU citizens are required to get permission from the Council of Ministers and the total size of the plot must be less than approx. 4,000 sqm.

I know that Cyprus has given special treatment to UK Citizens post-Brexit, one of which is freedom of travel. Does anyone know if the special treatment applies to the purchase of residential property i.e. still being able to buy in excess of 4,000 sqm?

I haven't been able to find any information on this.

Happy New Year to everyone!
Pantheman
Posts: 806
Joined: 26 Jan 2008 14:44
Location: Famagusta District
Contact:

Re: UK Citizen - status for property purchase in Cyprus

Post by Pantheman »

Although it is too soon to say at this time, the council of ministers permission was purely a formality and is applied for at the time of purchase, as far as I know it was never refused. This was a requirement so that non-EU persons could register a single title to their name.

You can still buy a residential property. The 4000m2 refers to a plot of land to build a single dwelling so I don't see how this will affect you.

The issue may only occur if you are looking to purchase more than one property.

Hope this helps.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
Nigel Howarth
Site Admin
Posts: 2905
Joined: 24 Oct 2007 14:38
Location: Erimi, Limassol, Cyprus
Contact:

Re: UK Citizen - status for property purchase in Cyprus

Post by Nigel Howarth »

Hi ajaxuk and welcome to the forum.

I bought property here in 1992 when foreigners could only own a single property/plot of land not exceeding 3 donums (4,014 sqm). I had to apply to the Council of Ministers - a mere formality. A few years after Cyprus joined the EU, the restriction was abolished for all EU citizens.

Non-EU citizens can buy as much property as they with, the restriction is on how much property you can own. (In my case I had a clause in my sale agreement that required the vendor to return my money if my application to the Council of Ministers was unsuccessful.)

When my application was approved, the Council of Ministers (in reality the District Office) stipulated that I must build within 3 years. Fortunately, my lawyer managed to get that stipulation removed.

Regards,
Nigel Howarth
Independent information & advice for Cyprus property buyers
Contact Nigel Howarth
Read the latest Cyprus property news
AlanB
Posts: 2
Joined: 07 Oct 2021 22:38

Re: UK Citizen - status for property purchase in Cyprus

Post by AlanB »

Hi,

I have the same question as the original poster. I am a UK citizen living in Cyprus with yellow slip. I want to buy a building plot that is about 4300 SqM, so bigger than the 4014 SqM limit for non EU citizens. Does anyone know if the limit can be varied?

I know I could buy as a company, and not have the limit, but then I believe I couldn’t claim the VAT reduction to 5% on both the land and subsequent construction costs. Anyone have a different understanding?

Thanks.
Pantheman
Posts: 806
Joined: 26 Jan 2008 14:44
Location: Famagusta District
Contact:

Re: UK Citizen - status for property purchase in Cyprus

Post by Pantheman »

AlanB wrote: 07 Oct 2021 22:44 Hi,

I have the same question as the original poster. I am a UK citizen living in Cyprus with yellow slip. I want to buy a building plot that is about 4300 SqM, so bigger than the 4014 SqM limit for non EU citizens. Does anyone know if the limit can be varied?

I know I could buy as a company, and not have the limit, but then I believe I couldn’t claim the VAT reduction to 5% on both the land and subsequent construction costs. Anyone have a different understanding?

Thanks.
The law on Aliens (non Cypriot or EU citizens) is covered by Law Cap 109 Sec. 3, and it states:

The acquisition of immovable property by an alien is prohibited without the consent of the Council of Ministers (except by inheritance).
The acquisition of land of a size that is necessary for the erection of a house or business premises up to 2 donums (2.676 sq.m.) is allowed.
The acquisition of larger area may be allowed:
for own residence (up to 3 donums, 4.014 sq.m.),


It would appear that anything over this may not be allowed.

the purchase of the land MUST be to construct a permanent residence and it must be constructed in reasonable time. Note however, that the title deed will not be transferred to your name until the house has been completed AND registered on the title deed.

If you are buying as an individual you can get the 5% rate on land and house. As a company it is unlikely you can claim the 5% since it is for permanent residences.

Hope that helps.
For all your property needs, we offer Trust, Integrity, Honesty.
FSB Properties Ltd
Registered and Licensed Real Estate Company. Reg. No. 1145, Lic. No. 572/E
Member of ETEK Registration No. A201999
https://www.fsbproperties.com
AlanB
Posts: 2
Joined: 07 Oct 2021 22:38

Re: UK Citizen - status for property purchase in Cyprus

Post by AlanB »

Thank you Pantheman,

It’s helpful, you confirm the problem clearly.

Think these rules need some changes!

Regards,

Alan
Post Reply