Buying Cyprus Property as a Non EU National: Cap. 109 Explained

Can a non EU buyer simply sign a contract and acquire any property in Cyprus? Not always. The Acquisition of Immovable Property (Aliens) Law, Cap. 109, remains an important part of the legal review for third country nationals and for companies controlled by foreign nationals.

Who is affected?

The Ministry of Interior currently describes the permission regime as applying to citizens of countries outside the European Union, foreign companies, and companies controlled by foreign nationals as defined by law. Cypriot citizens and EU citizens do not fall within that non EU permission route described by the Ministry.

What can a non EU purchaser normally acquire?

Under the current Ministry guidance, permission may be granted for a plot or undivided land of up to 4,000 square metres for the construction of a dwelling for owner occupation. Alternatively, permission may cover up to two units. These may be two dwellings, or one dwelling and a shop up to 100 square metres, or one dwelling and an office up to 250 square metres. For a couple, the limit applies jointly.

How is permission obtained?

The application is made on form COMM 145 to the District Administration where the property is situated. The supporting documents normally include the title information, planning documents where relevant, the sale contract, plans, financial information and passport details. The Ministry states that no fee is payable and that applications normally take approximately two to three weeks when complete.

Can a Cyprus company avoid Cap. 109?

This is the point buyers often miss. A company incorporated in Cyprus does not automatically remove the foreign purchaser restriction. The Ministry expressly includes companies controlled by foreign nationals within the permission regime. The shareholding and ultimate beneficial ownership must therefore be reviewed before a company is used to acquire the property.

The practical solution

Before the structure is chosen, identify the buyer, nationality, beneficial ownership, intended property use and number of assets to be acquired. Then decide whether the acquisition should be personal or corporate and whether District Administration permission is required.

Official source

Ministry of Interior, Purchasing Property, Acquisition of Immovable Property by Foreign Nationals, Cap. 109.

Planning a Cyprus property purchase?

Cyprus Law Chambers can review the purchaser structure, Cap. 109 position, contract and Land Registry process before you commit to the acquisition.

General legal information only. Individual transactions require case specific legal and tax advice.