ACQUISITION OF IMMOVABLE PROPERTY IN CYPRUS BY EU NATIONALS OR EU COMPANIES
As per the provisions of Acquisition of Immoveable Property Law, Cap. 109 (the “Law”), in order for any foreigner to acquire an immovable property in Cyprus the leave of the Council of Ministers is required, subject to certain exceptions.
The House of Representatives amended the Law through the enactment of Law 161(I)/2011 (the “New Law”), in order to give clarity towards the position regarding the acquisition of immovable property by European Union nationals or companies.
The New Law provides that citizens of an EU Member State or belonging to the European Economic Area (an “EEA State”) or companies which have been incorporated pursuant to the laws of an EU Member State or the laws of an EEA State and have their central seat, central management or their central establishment in an EU Member State or an EEA State, are eligible to acquire any number of immovable properties in Cyprus without the requirement to obtain a permit.
The New Law effectively eliminates an obstacle to inbound investment in Cyprus.