Are you contemplating buying property in Cyprus? The good news is that Cyprus welcomes foreign buyers with open arms and imposes minimal restrictions on property purchases. However, it’s crucial to understand the requirements that differ for citizens of the EU and non-EU nations.

Below, we detail the process for both groups and provide essential insights on property usage and investment considerations.

Contents

• Buying property as an EU citizen
• Buying property as a non-EU citizen
• Purchasing through a legal entity
• Property usage restrictions
• The 90-day rule and remote working options
• Renting out your property

Whether you’re looking to let or live in Cyprus, there is a growing demand

Buying property as an EU citizen

If you hold citizenship from an EU member state, you can buy property in Cyprus without any restrictions. Your rights parallel those of Cypriot citizens, provided all necessary documentation is completed accurately and you have no criminal background. EU citizens are not required to seek approval from the Council of Ministers to purchase property in Cyprus.

Buying property as a non-EU citizen

While non-EU citizens can indeed buy property in Cyprus, obtaining a permit is necessary if purchasing more than two properties. Following the signing of a Sale Agreement, buyers must submit a written application to the Council of Ministers for purchase approval. This process typically takes around two to three months and is intended to verify your identity and ensure that you do not have any outstanding legal issues in EU member states or with Interpol.

Purchasing through a legal entity

Foreign buyers can opt to purchase property through a company, which is particularly popular among seasoned investors seeking tax advantages. For buyers from North America, this approach is commonly used for acquiring overseas assets. To proceed, the company must be registered in Cyprus, allowing it to acquire property under its name. It’s advisable to seek legal assistance to navigate this process efficiently. Be aware that owning property via a corporation may have specific tax implications, so consulting with a tax expert is essential.

Property usage restrictions

Although acquiring property in Cyprus is straightforward, certain restrictions apply regarding its use. Both EU and non-EU citizens must adhere to specific guidelines, particularly concerning short-term rentals and commercial activities.

The 90-day rule and remote working options

For non-EU citizens, the stay limit in Cyprus is 90 days out of every 180 days, after which a visa is necessary. However, it is worth noting that Cyprus is not part of the Schengen Area, meaning your time spent there does not count toward the 90-day limit associated with Schengen nations. Likewise, visits to other EU or Schengen countries will not affect your 90-day duration in Cyprus.

On another note, if you are a non-EU or non-EEA citizen interested in working remotely while residing in Cyprus, you’re in luck. The Council of Ministers introduced a “Digital Nomad Visa,” aimed at attracting international talent. This programme offers 500 one-year residence permits that are renewable for an additional two years. To qualify, applicants must have a minimum income of €3,500 per month.

The benefits include residency rights for family members during the permit’s validity, and should you spend over 183 days in Cyprus, you will be classified as a tax resident – offering potential exemptions from taxation in your home country due to existing Double Tax Treaties (DTTs) with Cyprus and many other nations, including the UK and the USA.

Renting out your property

Recent legislation in 2024 aims to regulate short-term holiday rentals and self-catering accommodations in Cyprus to manage growth in this market, particularly through platforms like Airbnb. The licensing process can take up to two years, and as there is ambiguity regarding non-residents’ ability to apply for such licenses, obtaining sound legal advice is crucial if your investment relies on short-term rentals.

If you’d like any more detail on these steps, download your free copy of our Cyprus buying guide:
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In summary, while purchasing property in Cyprus is a feasible and promising option for both EU and non-EU citizens, understanding the respective processes and ongoing obligations is essential for a smooth transaction and productive ownership experience.