Buy a Property in Cyprus
It is relatively easy to buy a property in Cyprus. The Cypriot legal system in Cyprus, based on the British model is considered as excellent. At La Maison Estates we are making the process of buying a property enjoyable and as easy as possible. Below are the steps to be followed.
Find the property you wish to purchase from our selection.
Your lawyer will send to you a Client Care letter setting out their terms of engagement
After paying a deposit to reserve the property, your lawyer will prepare the Deed of Deposit and Reservation.
Under the current Cypriot legislation, non-Cypriot citizens cannot own and therefore accept the registration of property in their name without the prior permission of the District Officer.
This formality (for EU member citizens) can take a few months to be obtained. It is not needed the permission to be obtained prior to you signing the Agreement for the purchase of the property.
The Contract of Sale can be prepared. After approval of the Agreement which will be sent to you, it can be signed by all parties.
Sign the Contract of Sale in Cyprus
- As the terms of the Agreement are governed by the Law of Cyprus, it is advisable that it is signed in Cyprus in order for your lawyer to ensure it is correctly executed and therefore valid.
- If you are not able to be present in Cyprus for the signing of the Agreement, it is advisable that you grant a General Power of Attorney to your lawyers. This will allow them to sign the Agreement on your behalf when they receive your instructions to proceed with the purchase.
- You should inform your Lawyer the soonest possible if you wish to grant a General Power of Attorney in their favour.
Signing the Contract of Sale outside Cyprus
- The document will then be sent to you for signing in the presence of a Notary. Once the document has been signed, you will need to ask the Notary to fax a copy of the signed document together with a certified copy of your passport to your lawyer in Cyprus.
- The original document will be sent by the Notary to the Foreign Office for Legislation, through the Apostille procedure. This is the process by which the signature and seal of the Notary are authenticated.
- Once the document has been returned to you by the Foreign Office you will need to forward this to your lawyer in Cyprus.
- You can obtain details of your nearest Notary from the website of the Notaries Society: www.thenotariessociety.org.uk
Once the Agreement has been signed by all parties and the relevant payment made to the Developer under the terms of the Agreement, your lawyer will take it to the local Tax Office where the stamp duty will be paid and the revenue stamps placed on the original document.
The stamp duty is payable within one month from the date of signing the Agreement otherwise a fine is imposed escalating day by day.Your lawyer will then send you a copy of the Agreement for your retention.Your lawyer will then file the original Agreement with the Land Registry. Once a Contract of Sale is filed with the Land Registry and once certain conditions are fulfilled, the buyers may apply to Court for the transfer of the Title of the property in question in his/her name thus specifically enforcing the terms of the Agreement.
Finally when a Completion Certificate issued by the District Office and you are in receipt of the letter of approval to own property in Cyprus, the application for the transfer of Title of the property into your name can be made.
The Republic of Cyprus is a member of the European Union so all citizens of other EU and EEA (European Economic Area) countries do not require a visa to enter, have the same rights of residence as Cypriot citizens and are entitled to the same conditions of employment and social insurance. Non-EU dependents (the spouse and children) of EU citizens are entitled of these same rights.
For more information visit ec.europa.eu
NON-EUROPEAN UNION CITIZENS
The Cyprus Government has recently (March 2014) revised the previous schemes for the granting of Cypriot Citizenship with new ones that enable foreign non-EU investors to become Cypriot (EU) citizens, faster (about 3 months) and more affordable than ever through one of the following property investment:
A: €3.0m MULTIPLE UNIT INVESTMENT (€2.5m INVESTMENT + €500,000 PERMANENT RESIDENCE) or
B: €2.5m SINGLE PROPERTY INVESTMENT
REASONS TO OBTAIN CYPRIOT CITIZENSHIP
- Cypriot citizens enjoy the freedom to live, work and travel in the European Union and Switzerland.
- Dual citizenship offers an effective tool for international tax planning.
- Cypriot passport holders can travel without visa to more than 150 countries and can obtain visas for other countries (including the USA) quickly and cost effectively.
- Cypriot passport holders have access to the best and healthcare, education opportunities and social benefits.
- The investors’ spouse and dependent children under 28 years of age (provided they are in full-time education) are also granted the right to citizenship without any additional investment.
Cyprus has no inheritance tax, has highly favourable corporate tax structure and a comprehensive double tax treaty network.
- There are no physical residency requirements Citizenship is passed on by descent, offering a legacy to future generations.
- There are no tax consequences, unless you opt to become tax resident in Cyprus.
- Cyprus offers a great place to visit/live, it enjoys a strategic geographical position, offers excellent worldwide communications, has excellent infrastructure, pleasant climate and is highly stable.
TERMS & CONDITIONS
- Applicants must hold a clear criminal record from the country of origin and the country of residence (if different).
- To maintain the citizenship, the investor must always keep a real estate property of minimum value €500,000 which will be considered as the permanent residence. The remaining investment can be sold after 3 years.
- Any property purchased during the past three years will count towards the required investment figures. In such cases the purchaser must acquire additional real estate to reach the total required investment. A three year period must not have passed before the application admission.
- Applicants will be part of a collective real estate purchase scheme. This means that a minimum of 5 citizenship applications must be submitted together.
In light of the global recession and ever changing fiscal and monetary policies that impact investments, there has been an increased interest by foreign investors in relocating their funds and families to a jurisdiction that offers stability and security. Certain changes to the Cypriot immigration policy and legal framework now enable non-EU applicants to obtain Cypriot citizenship on an expedited basis.
With the purchase of properties, worth €2 million to €5 million (depending on the way the money is invested), non-EU citizens are eligible to apply for a Cypriot Passport / Citizenship granting them:
- Freedom to live, travel, invest, work, study and buy property anywhere in the EU.
- Benefit from the legal rights and privileges of natural born EU citizens, such as health, education and vote in European elections.
- Once the citizenship is obtained, eligibility is then passed onto the applicants’ children and their descendants.
La Maison Estates can assist you with fast-tracking all applications required to obtain citizenship and ensure that your investment is protected and secure.