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to many countries, the mechanics of property acquisition
in Cyprus by foreigners are
relatively simple.
Non-Cypriots are permitted to buy for their personal
use either:
a.
An apartment or a house (a second house will also
be permissible after 1st January 2003)
b. A house on a building site not exceeding 3 donums
(approximately 4013 sq. m) or
c. A piece of land not exceeding 3 donums for the
purpose of erecting a house within a reasonable
time
d. A building covered area up to the maximum allowable
by the applicable town planning zone building ratio,
and this varies from site to site
European
property comparisons
The result of surveys indicates that Cyprus property
is 1/2 - 2/3 cheaper than Spain and Portugal.
In the years 2000 – 2002 demand for property in Cyprus
is 100% up year on year.
Investment in property at the beach area is up 25%
and inland up 10%.
At present returns on real estate as a generality
show a level of 5% - 8% p.a., but considering the
steady capital appreciation (for prudent acquisitions)
of 5% - 10% p.a., it creates a total return of approximately
10% - 18% p.a. for income based properties.
Permission to buy property
Permission to buy immovable property must be sought
from the Council of Ministers by written application,
which must be submitted by the non-Cypriot purchaser
after the agreement to purchase is signed. However,
this permission is granted more or less as a matter
of course to all bona fide purchasers. In the meantime,
however, purchasers may take possession of their property
without restriction.
The application to the Council of Ministers to acquire
immovable property in Cyprus can be made within a
reasonable time after signing the contract of sale.
Legal
application fees
At the purchasers request, the purchasers appointed
lawyers will process the application to the Council
of Ministers for the permit to own property in Cyprus,
for the nominal fee of CYŁ150, payable when such permission
is granted.
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