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European Lawyers, Solicitors and Law Firms based in Europe

 

04.07.2014 More Favourable Criteria for Obtaining Cyprus and EU Citizenship - The Perfect Time to Invest in Real Estate


Cyprus real estate market seems to be awaking gradually from the deep recession and it is estimated that the second semester of 2014 will be the perfect time to invest in Cyprus and especially in real estate and properties.


The above are based mainly on the following predictions:

(a) Cyprus economy is expected to start showing positive growth by 2015,

(b) A number of significant projects are under study and other on-going projects will be completed by the end of 2014, especially in coastal cities, that will improve the standard of living of the particular area and will boost tourism and the economy in general. 

(c) Prices of properties will remain low and are expected to reach the bottom line during the second semester of 2014 before start rising slowly again during 2015.

(d) Until the end of 2014 there are NO transfer fees payable to the government for the purchase of new properties (transfer fees are the fees that a buyer is obliged to pay when purchasing a property and a separate title deed is issued in his name)

(e) The Council of Ministers has approved, in certain occasions, the enforcement of even more favourable criteria for granting the Cyprus and EU citizenship to foreign investors and businessmen. More specifically, the Council of Ministers has now the discretion in certain occasions to reduce the current required investment limit of €5million in either government bonds (A1 category) or public companies’ shares and bonds (A2 category) or real estate and developments (A3 category) or registration and participation in private companies in Cyprus (A4 category) or a combination of the above as follows:

(i) to €2.5million if the investors are participating in a collective investment fund, provided that the total investment is at least €12.5million; and

(ii) to €2million if the investors are participating in a collective investment fund, provided that the investment is more than €12.5million; this provision will be enforceable only until 1 June 2014.

Furthermore, in order for the Council to be able to exersice its discretion according to points (i) and (ii) above, the investment of either A1 to A4 category is possible to come from various and different sellers or providers (natural or physical persons), not just one.

It is also important to note that in case the investor/businessman is not investing in real estate but in other areas as mentioned above, then there is a condition that he has to be the owner of a permanent residence in Cyprus of purchase value €500,000.

Therefore, in any case, investment in real estate is inevitable when an investor intends to apply for Cyprus citizenship.  However, investing in real estate in Cyprus is not always a straight forward case, especially when it comes to title deeds and encumbranced properties, so it is alsways advisable to use expert legal professionals to assist you in this regard.


BRIEF SCOPE OF SERVICES WE OFFER

  • We shall search on your behalf and present to you all properties or development projects that suit better to your investment requirements and needs.
  • Our network is comprised only with reliable and trustworthy developers and sellers and for this reason we guarantee quality work and title deeds.
  • We carry out for you all necessary searches in the relevant Lands Registry in Cyprus to make sure that the property or project is clear from any reimbursements and/or mortgages.
  • We shall draft and/or review any required agreements and we shall provide A-Z advice and guidance in relation to your investment.
  • We shall appear before any public authority for completing the investment like:


· Tax Authority

· Land Registry

· VAT authority (please note that buyers in Cyprus are entitled to be charged a reduced VAT rate of 5% for their permanent residence in Cyprus, instead of the normal rate of 19%.

  • We shall carry out all required procedures, if applicable, for applying and obtaining either permanent residence permit or citizenship.
  • We may open bank accounts if requested and administer any funds.


Through our network of lawyers and other professionals we may also assit and advise you in relation to any other investment you might wish to conduct apart from real estate, tax planning, corporate administration etc.

For more information please contact us at atekkis@cypruslegaladvice.com


ALEXIS TEKKIS
Lawyer - Legal Consultant
A. TEKKIS & CO LLC

atekkis@cypruslegaladvice.com