Foreigners, both natural persons and legal entities, can purchase properties in Cyprus. The procedure is concluded through a sale/purchase contract, which should contain a set of compulsory provisions related to the object of the purchase, its price, the conditions in which the property is sold, the rights and obligations of the parties and other specific aspects. Related to this subject, we mention that the Cypriot property transactions increased in 2016 by 43%, which represents the highest increase in the field since 2010. When concluding a property transaction in Cyprus it is advisable to address to our team of Cypriot lawyers, who can help with the due diligence procedure - a recommended step (yet not compulsory) in this process.
Property transactions in Cyprus
At the level of 2016, the property transactions increased by 43%, which accounts for a total of 7,063 contracts. According to the data provided by the Department of Lands and Surveys, the Cypriot market registered in December 2016 the highest number of transactions, of 1,134.
Most of the transactions were concluded in the main cities in Cyprus, as follows:
• Limassol – an increase of 59% (accounting for a total of 2,496 contracts);
• Nicosia – an increase of 38% (1,031 contracts);
• Paphos – an increase of 40% (1,740 transactions);
• Larnaca – an increase of 27% (1,360 transactions);
• Famagusta – an increase of (436 contracts).
The property market in Cyprus began to develop at a fast pace and investors who are interested in setting up a company here should know that the construction sector in the field of real estate also began to show signs of development. Our team of lawyers in Cyprus can assist businessmen with more details on the business permits required in this case.
Property market in Cyprus – main characteristics
The increase of the property market in Cyprus was a direct effect of the local policies conducted by the government. The number of transactions rose as a consequence of a relevant tax cut to stimulate this field.
At the same time, the regulatory framework for title deeds was modified and the transparency level was also increased, following an effective reformes started in 2014.
As mentioned above, the property market is also influenced by the development projects carried out by construction companies. In this sense, we mention that in 2016, the number of permits awarded to companies developing residential projects increased by 1,7%, compared to 2015.
Businessmen are invited to contact our law firm in Cyprus for more details on the legal aspects related to real estate property transactions. Our lawyers can assist both natural persons and legal entities in receiving relevant documents attesting the transfer of ownership.