Acquisition of Immovable Property by EU nationals or companies
1. The Law on the Acquisition of Immoveable Property, Cap. 109 (the “Law”) prohibits, subject to certain exceptions, the acquisition of immovable property in Cyprus by a foreigner without the prior leave of the Council of Ministers.
2. On December 16, 2011, the House of Representatives enacted Law 161(I)/2011 (the “2011 Law”) to clarify the position regarding the acquisition of immovable property by European Union nationals or companies.
3. The 2011 Law excludes from the scope of the Law, among others, any:
(a) citizen of an EU Member-State or citizen of a state belonging to the European Economic Area (an “EEA State”);
(b) legal person that has been incorporated pursuant to the laws of an EU Member State or the laws of an EEA State and has its central seat, its central management or its central establishment in an EU Member State or an EEA State.
4. In other words, the effect of the 2011 Law is that it clarifies that citizens or companies of an EU Member State or an EEA State are allowed to acquire any number of immovable properties in Cyprus without the requirement to obtain a permit.
5. The 2011 Law in addition to aligning Cypriot legislation with EU law removes an obstacle to inward investment.