Yes, foreigners can buy property in Cyprus. After Cyprus joined the European Union in 2004, restrictions on property purchases were gradually lifted to comply with EU regulations. By May 2009, citizens of EU member states and companies within the European Economic Area (EEA) were treated as local residents, allowing them to buy property without restrictions. They can also register as many properties as they wish in their own name without needing special permission.
However, residents of countries outside the European Union must obtain special permission from the Council of Ministers. This process is largely a formality, typically requiring the buyer to have no prior property in Cyprus and no legal issues.
According to guidelines from the Ministry of Internal Affairs, directives from the Central Bank of Cyprus, and the “Law on the Purchase of Real Estate by Foreigners” (Art. No109), non-EU citizens or foreign organizations wishing to purchase property in Cyprus must obtain permission from the Council of Ministers. This permission is usually facilitated by a local official in the area where the property is located. Non-EU citizens must submit an application to the local administration in the district where the property they plan to purchase is situated.
What Can Non-EU Citizens Buy?
Non-EU citizens can obtain permission to purchase up to three real estate units, totaling approximately 4,014 square meters, for the construction of a single residential building intended for the buyer, their spouse, and dependents. The Ministry of Internal Affairs in Cyprus allows ownership of a maximum of two properties, which can be in one or different buildings.
Permissible property types include:
- A residential unit plus an office space of less than 250 square meters.
- A residential unit plus a retail space of less than 100 square meters.
- Two residential units.
A multi-office floor or an entire commercial building with a shared title is considered one unit.
If more than two properties are purchased, the title deed will not be issued, which means the property cannot be used to secure a loan. However, the property can still be used, rented out, or sold.
Additionally, family members of the original buyer (excluding the spouse) can also purchase property if they are financially independent. However, the permit is issued strictly for personal residence and not for commercial exploitation or leasing purposes.
These restrictions can be bypassed by setting up a company in Cyprus and registering the property under the company’s name, or by registering the property in the name of a family member.
Benefits of Buying Property in Cyprus as a Foreigner
Owning property in Cyprus provides several benefits, including eligibility for a multiple-entry national visa. However, without a specific visa, property owners cannot travel freely within the Schengen Area, as Cyprus is part of the European Union but not the Schengen Agreement.
There are two main schemes for property purchase:
- A standard option for affordable housing.
- A “fast track” option that allows for an accelerated process to obtain a residence permit for those purchasing property valued at more than €300,000. Property purchases exceeding €300,000 grant the buyer the right to permanent residence, which does not need to be renewed. After 8 years of residency in Cyprus, you can apply for citizenship through naturalization.
In 2020, the Citizenship by Investment program was suspended, but the option to obtain permanent residence in Cyprus through investment remains available.
