Can I buy property in Cyprus?
Good news – there are no buying restrictions for foreigners looking to purchase property in Cyprus. There are, however, certain steps to take if you are from a non-EU country, read more on that below.
Here, we’ll outline the steps to buying as a non-EU and EU citizen and document any restrictions in place.
Buying property in Cyprus as an EU citizen
As a citizen of an EU country, you have the same rights as a Cypriot native and there are no restrictions. This is subject to documentation being correctly completed and that the applicant has no criminal record.
EU citizens do not need to get approval of the Council of Ministers to own a property in Cyprus.
Buying property in Cyprus as a non-EU citizen
Non-EU citizens can purchase real estate in Cyprus, but they need a permit to buy more than two properties.
Additionally, they must seek permission from the Council of Ministers by written application, which must be submitted by the buyer after the contract of sale is signed.
The application to the Council of Ministers is submitted with the Sale Agreement and is typically granted within two or three months.
This step is basically to check character references, that you are who you say you are and to ensure you’re not wanted in any EU member states or Interpol.
Legal entities’ eligibility to purchase property
You can also buy a property in Cyrus via a company. Some buyers, typically seasoned investors, choose this route for tax reasons. For North American buyers this is a common way of buying property overseas.
There are certain legal hoops to jump through when buying as a company. The company must be registered in Cyprus and once established, it can acquire a property in its name. Legal assistance is recommended to navigate the process.
There may also be additional tax implications as an owner of company property, therefore buyers should consult with a tax specialist to understand their fiscal obligations.
Is there any restriction on what I use my Cyprus property for?
While you can buy a property in Cyprus there are some restrictions on what you can use it for. Some apply to both EU and non-EU citizens and some only to non-EU citizens.
Your Cyprus property and the 90-day rule
As a non-EU citizen you can stay in Cyprus for up to 90 days in 180 days. After that you will need a visa.
However, the good news for non-EU citizens is that Cyprus is not part of the Schengen area, so visits to Cyprus do not count towards your 90-day visa-free limit in the Schengen area. Moreover, visits to other EU or Schengen countries do not count towards your 90-day visa-free limit in Cyprus.
“Working from home” in your Cyprus property
You can, but there are limitations. If you’re a non-EU or non-EEA citizen, you’re in luck as the Council of Ministers has launched a new strategy to attract international talent from abroad. The scheme is commonly known as the Digital Nomad Visa, which aims to grant 500 residence permits. This allows non-EU and non-EEA individuals to work remotely in Cyprus on a one-year residence permit, with the option to renew for another two years. The minimum income requirement for this scheme is €3,500 per month.
There are many benefits to this, which include right of residency for family members while your residence permit is valid. Also, if you spend more than 183 days in Cyprus, you’ll be considered a tax resident of Cyprus and it’s highly won’t have to pay tax in your home country due to Double Tax Treaties (DTTs), which exist between Cyprus and most EU countries, the UK and the USA.
Renting out your property in Cyprus
In 2024 Cyprus passed a law regulating short-term tourist and self-catering accommodation, designed to curb the growth of AirBnb-type lettings while upgrading the quality of tourist accommodation.
As getting the licence takes up to two years and there is some confusion about whether non-residents can apply, it is essential to get good legal advice of your purchase is dependent on doing short-term rentals.