Foreign currency loan and Council of Ministers permission

[cleopetra]

Hello, I'm a US citizen in the process of buying a resale apartment in Nicosia (with title deeds). I will be putting a downpayment by converting US dollars from my US bank account into euros, and will also take out a loan in euros from a Cypriot bank. I was told by the bank that I would be treated as a non-resident as I arrived only two months ago and don't have residency yet. I read on several sites that non-resident, non-EU buyers must pay for the house in foreign currency (which I guess would mean taking out the loan in foreign currency?!) in order to get permission from the Council of Ministers. Is this true?

Also, I'm very nervous about signing a contract with the seller without knowing for sure if I will get the permission from the Council of Ministers or how long it would take to obtain. The seller has refused to include a clause in the contract that would ensure I get my deposit back and that the sale is canceled in case I don't get this permission, which means I would be stuck with a house I can't afford. I'm very confused about this permission and why I can only apply for it AFTER signing the contract. It sounds so illogical and risky!

Unfortunately, my lawyer has been completely non-responsive lately and wasn't able to give me any answers. I'm now having to look for a new lawyer as well. Any advice you can provide would be GREATLY appreciated.

[Nigel Howarth]

Hi Cleopatra & welcome to the forum.

Before Cyprus joined the EU in 2004, all non-Cypriots had to apply for permission to own property here from the Council of Ministers (including myself) – it isn’t really a problem. I have a number of non-EU friends, including Americans, Canadians, Lebanese, Ukranian, etc who have also gone through the process. When Cyprus joined the EU, the law changed so that EU citizens no longer needed Council of Ministers approval – but the requirement stayed in place for all non-EU citizens.

You can read about applying for Council of Ministers permission on my website at http://www.cyprus-property-buyers.com/l ... ations.htm

I don’t know of anyone who’s been refused. And in the very unlikely event that you are refused you can sell the house or apply again.

You don’t need to take out a loan in foreign currency – and you already have (presumably) the documentation from the bank about the transfer of USD into your Cyprus bank account.

As for finding yourself a decent lawyer, the British High Commission in Nicosia publishes a list of English-speaking lawyers (there’s only nine on it). That list is available in my magazine at http://www.news.cyprus-property-buyers. ... /id=002254 – where you’ll also find a link to check if the list has been updated recently.

If you wish to change your lawyer, you’ll need to dispense with the services of your current one. The following letter will do the job:

• Dear
  
  I wish to dispense with your services as my lawyer with immediate effect. I have settled my account with your firm and no further charges are payable.
  
  Please forward my file to:
  
  (Name and address of your new lawyer)
  
  Thank you for your prompt attention
  
  Yours sincerely

I suggest that you send it by email and then follow it up with a registered letter. That way they will not be able to claim that they never received it.

I hope that helps

[cleopetra]

Dear Nigel,

Thank you so much for your reply, it's incredibly helpful! I understand now that the Council of Ministers approval is most likely to be granted, but one of the requirements listed in the link you provided is the residence permit, which I will not have obtained by the time I present my application. Any idea whether there are exceptions to this? I wasn't aware that only residents were allowed to purchase property in Cyprus if they are non-EU. Is that the case?

Your site is an unbelievable resource on a system I found to be very complex and constantly changing. Kudos for all your efforts.

[Nigel Howarth]

Dear Cleopetra,

Interesting? I got that information from the Cyprus Government's website at http://www.cyprus.gov.cy/portal/portal. ... enDocument . But it doesn't make sense to have a resident permit if you are not resident here?

I think it best that your lawyer advises you on this point.

But when you arrive here, you'll need to register yourself at the most inappropriately named 'Aliens Department' and they will issue you the paperwork.

Mork signing off

Regards,