Cyprus is a very open country when it comes to foreign investors and these can perform various activities in this country without being required to come here. This is possible through a power of attorney granted to a trusted person, such as a lawyer in Cyprus or another relative.
Our Cypriot lawyers can help foreign investors in performing various tasks remotely through powers of attorney.
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The Cypriot power of attorney
The power of attorney is a formal and legal document through which an individual, called a donor, appoints another person, called an agent or attorney, to make decisions on his or her behalf. These actions are usually defined when handing over the authority to the agent. Power of attorney in Cyprus allows an agent to represent the donor in certain legal situations or handle business or financial matters. A Cypriot power of attorney may be released for specific situations or broad purposes.
The Power of attorney can be used by foreign investors when opening companies in Cyprus and cannot be present to sign legal documents. Also, the power of attorney can be employed when purchasing real estate in Cyprus. The power of attorney will allow Cypriot lawyers to act on behalf of clients thus reducing the amount of time for a legal action to be completed.
Types of powers of attorney in Cyprus
The Contract Law in Cyprus allows for two types of power of attorney to be issued: the general and the specific power of attorney. The general power of attorney will allow an agent to sign any document on behalf of the donor, while the specific power of attorney will limit the agent’s actions to some degree. The specific power of attorney in Cyprus may be subject to two possible limitations: by task or by time. The Cypriot limited power of attorney by the task is usually granted for a certain purpose only. The power of attorney limited by time will usually be granted for a certain period.
For information about all the required steps to issue a power of attorney, you can rely on our Cypriot law firm.
How does a foreign citizen grant power of attorney in Cyprus?
In Cyprus, the power of attorney must be signed in front of a certifying officer. Citizens living abroad and giving power of attorney to their lawyers in Cyprus must address the Cypriot Consulate in their country. The document must also be notarized before being forwarded to the Consulate. As the power of attorney is a very important document that implies good faith on the part of the donor, the Cypriot Civil Law is very protective of donors by making sure this document is certified by a certifying officer before taking effect.
Granting a power of attorney for opening a company in Cyprus
Most of the time, clients gave our lawyers in Cyprus power of attorney to represent them in front of the authorities for registering their companies with the Companies Registrar.
Through the power of attorney, our lawyers can perform the following operation on behalf of clients:
- Preparing the Cyprus company’s Memorandum and Articles of Association;
- going before a public notary in Cyprus and having the documents notarized;
- Submitting the documents to the Companies Registry in the designated city;
- Register the company with the tax authorities to obtain VAT and tax identification numbers.
Clients should come to Cyprus when opening a corporate bank account for the business.
Uses of the power of attorney in a Cypriot company
It is important to know that a series of services can be conducted by a representative of the company when it comes to the relationship with the authorities. The company owners have the right to appoint a representative who must also be granted a power of attorney which will be used every time the respective person must complete an activity on behalf of the company. Among these, the company director and secretary can use powers of attorney to complete their activities.
The power of attorney in real estate transactions in Cyprus
As mentioned earlier, the power of attorney can also be used when buying or selling properties in Cyprus. The power of attorney can be used by both local and foreign clients interested in such transactions.
With the help of our Cypriot law firm, our clients can:
- have the sale-purchase agreements drafted and notarized in a fast manner;
- benefit from representation before the Land Register when conducting real estate due diligence;
- Representation before the parties involved in the sale or purchase transaction;
- Representation with the Land Register when registering a real estate property.
Powers of attorney can be used to reduce the time spent on various types of procedures that can be completed remotely. Even if it is quite easy to issue a power of attorney, it is always advisable to consult a law firm in Cyprus before drafting the document.
List of situations in which you can grant a power of attorney
In Cyprus, as in many other countries, various situations may arise that necessitate the issuance of a power of attorney (PoA). You can also describe your circumstances to our Cypriot lawyers, they can guide you if you need to issue a power of attorney or not. Besides this, here are some common events and circumstances that may require a power of attorney in Cyprus:
- Real estate transactions: If you are selling or buying a property in Cyprus but cannot be present to sign the necessary documents, you can grant a power of attorney to our Cypriot law firm to act on your behalf.
- Business transactions: When conducting business in Cyprus, you may need to appoint an attorney-in-fact to handle various business-related matters, such as signing contracts, making financial transactions, or representing your company in legal matters. If you are seeking any such services, please get in touch with our attorneys in Cyprus. Once you grant them power of attorney, they can look after business transactions for you.
- Financial matters: You can grant a power of attorney to our law firm in Cyprus to manage your financial affairs, such as accessing bank accounts, paying bills, or handling tax-related matters.
- Healthcare decisions: You can create a Healthcare power of attorney in Cyprus to designate our lawyers to make medical decisions on your behalf if you become unable to do so. Consult with our lawyers in Cyprus to learn how you can grant such authority.
- Legal proceeding: If you are involved in legal proceedings but cannot attend in person, a power of attorney in Cyprus can authorize our attorneys to represent you in court or with legal authorities.
- Inheritance matters: If you have assets or interests in Cyprus and need our law firm to handle estate or inheritance matters, a power of attorney can be useful.
- General administration: For convenience or peace of mind, you can also grant a general power of attorney to our lawyers who can handle various personal, financial, or legal matters on your behalf, even if you are not facing a specific event.
- Travel or absence: Before traveling abroad or during extended absences from Cyprus, you are recommended to create a power of attorney to ensure our lawyers can manage your affairs in your absence.
- Special transactions: Some specific transactions, like vehicle purchases, may require a power of attorney if you cannot be present to complete the deal.
It is essential to tailor the power of attorney in Cyprus to the specific event or purpose it is intended for and to consult with our lawyers to ensure it complies with local laws and serves your interests effectively.
Besides this, if you are considering getting married in Cyprus, it is advisable to consult with our lawyers for up-to-date and specific guidance. So, if you have any questions about marriage in Cyprus, our lawyers are here to assist you.
Requirements for creating a power of attorney in Cyprus
Power of attorney in Cyprus must be meticulously and thoughtfully prepared to safeguard the interests of all parties involved. While preparing a PoA, the following formalities must be observed:
- Both the principal and the agent must be adults and of sound mental health to be eligible for executing a PoA;
- The PoA should provide unambiguous instructions for the agent to act on behalf of the principal;
- The principal is required to put his/her signature on the document;
- The PoA must bear the date on which it was signed;
- The PoA needs to be duly certified by a Certifying Officer. This certification serves as confirmation that the document was indeed signed by the principal.
Adhering to these formalities is of paramount importance to ensure the legality and effectiveness of the power of attorney in Cyprus.
Termination of a power of attorney in Cyprus
A power of attorney undergoes immediate and absolute termination in the following circumstances:
- The unfortunate demise of either the principal or the agent;
- A resounding and unequivocal revocation by the principal;
- A solemn declaration of mental incapacity affecting either party;
- Or the triumphant completion of the instructions outlined in the power of attorney.
It is of utmost importance that the principal fully comprehends the instructions provided to the agent because any actions or decisions made by the agent under the power of attorney will be ratified, confirmed, and indemnified by the principal. If you have any inquiries regarding the status of the Cypriot power of attorney, our legal professionals in Cyprus are available to provide answers and assistance. It is advisable to contact our Cypriot attorneys when drafting and executing a PoA to guarantee that all legal requirements are met.