British citizens rights in EU/Cy after Brexit.

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boycott
Posts: 364
Joined: Sat Dec 31, 2016 12:25 pm
Location: Limassol

British citizens rights in EU/Cy after Brexit.

Post by boycott »

In todays Cyprus Financial Mirror
https://www.financialmirror.com/2021/02 ... by-brexit/

Now that Brexit is over and done with, it made me think about what British nationals can or cannot do in Cyprus when buying real estate.

As circumstances stand and without any change in the law regarding the acquisition by British nationals, they will now become part of the category of ‘foreign purchases’ as all other non-EU members.As such, they face the following restrictions:

Only one house can be acquired.
No letting for income.
Purchase of land or house limited to 4,000 sqm.
No acquisition of offices, etc, other than through an offshore company (which has its restrictions regarding the location of offices, the number of locally employed staff etc).
The transfer of property will require Cabinet approval, which might take 2-4 months and the applicants required to provide detailed information.
No share acquisition in real estate companies or funds.
Acquisition of land outside development areas, e.g., agricultural, is restricted, and land acquisition in development areas must have had a home erected within three years from the purchase.
All money used for the acquisition must come from abroad.
Unmarried couples (even if they have children or grandchildren together) cannot have joint ownership of real estate.
Work permits will be required if work is necessary.
There is also the issue of the cost of a visa when visiting Cyprus, as well as the exclusion from the Cyprus national health scheme GHS.The situation is not clear as I have urged the Cyprus government to provide some type of an exception or relaxation for our British friends living permanently in Cyprus to minimise their restrictions.

Using Commonwealth status is one way to overcome the matter, but then Commonwealth covers a lot of other nationalities as well (including Pakistan, India, South Africa) and we have the E.U. opinion to consider.

I suspect a similar problem exists with other destinations popular for the British, including Spain, Portugal, Malta, Italy, and Greece, so perhaps a joint EU proposal could help.

The situation has worried local and expat residents, but a fair warning was given to them to utilise the grace period provided, including support from various British organisations, but I understand that a good percentage did not do anything.

As a result of these restrictions and uncertainties, some British homeowners are placing their property on the market for sale, especially in the Paphos region.With approximately 40,000 Britons living in Cyprus on long or short-term stays, to have reached this juncture feels like we are losing a long-time friend.

In the end, Cyprus stands to lose in terms of ‘permanent tourism’, whereas the long-standing individual and personal friendships will also take a hit.

An old client asked me if we will meet again, which is the sort of confusion that will be created at least for the next six months or so.

So, where do we go from here?

Under the permanent residency visa rules (as it exists today) property buyers will require a home with a value of at least €300,000 + VAT unless the existing one already cover this.

This will create difficulty for the newcomers who will have to come up with such an amount above their holiday home requirements.Besides, newcomers will need to prove an income of at least €30,000 p.a. + €5,000 p.a. for dependents, and they need to visit Cyprus at least twice a year.

These kinds of restrictions do not necessarily exist in other countries and will place Cyprus at a disadvantage.

Then again, with the mess, we found ourselves in with the citizenship-for-investments programme (golden passports) is this the right time to consider any relaxations?

One local developer operating in Paralimni, worried about losing his buyers, asked me what he needed to do.

I directed him to various websites that deal with such matters but asked, “where were you when this situation was coming up 6 months ago?”

It makes me wonder how property developers selling to Britons have not yet come up with suggestions to put pressure on the Cyprus government (currently at its lowest level of credibility regarding real estate) to safeguard their clients who are seeking greener pastures
Chaddy
Posts: 780
Joined: Thu Jan 18, 2018 9:39 am

Re: British citizens rights in EU/Cy after Brexit.

Post by Chaddy »

boycott wrote: Sat Feb 20, 2021 3:29 pm In todays Cyprus Financial Mirror
https://www.financialmirror.com/2021/02 ... by-brexit/

Now that Brexit is over and done with, it made me think about what British nationals can or cannot do in Cyprus when buying real estate.

As circumstances stand and without any change in the law regarding the acquisition by British nationals, they will now become part of the category of ‘foreign purchases’ as all other non-EU members.As such, they face the following restrictions:

Only one house can be acquired.
No letting for income.
Purchase of land or house limited to 4,000 sqm.
No acquisition of offices, etc, other than through an offshore company (which has its restrictions regarding the location of offices, the number of locally employed staff etc).
The transfer of property will require Cabinet approval, which might take 2-4 months and the applicants required to provide detailed information.
No share acquisition in real estate companies or funds.
Acquisition of land outside development areas, e.g., agricultural, is restricted, and land acquisition in development areas must have had a home erected within three years from the purchase.
All money used for the acquisition must come from abroad.
Unmarried couples (even if they have children or grandchildren together) cannot have joint ownership of real estate.
Work permits will be required if work is necessary.
There is also the issue of the cost of a visa when visiting Cyprus, as well as the exclusion from the Cyprus national health scheme GHS.The situation is not clear as I have urged the Cyprus government to provide some type of an exception or relaxation for our British friends living permanently in Cyprus to minimise their restrictions.

Using Commonwealth status is one way to overcome the matter, but then Commonwealth covers a lot of other nationalities as well (including Pakistan, India, South Africa) and we have the E.U. opinion to consider.

I suspect a similar problem exists with other destinations popular for the British, including Spain, Portugal, Malta, Italy, and Greece, so perhaps a joint EU proposal could help.

The situation has worried local and expat residents, but a fair warning was given to them to utilise the grace period provided, including support from various British organisations, but I understand that a good percentage did not do anything.

As a result of these restrictions and uncertainties, some British homeowners are placing their property on the market for sale, especially in the Paphos region.With approximately 40,000 Britons living in Cyprus on long or short-term stays, to have reached this juncture feels like we are losing a long-time friend.

In the end, Cyprus stands to lose in terms of ‘permanent tourism’, whereas the long-standing individual and personal friendships will also take a hit.

An old client asked me if we will meet again, which is the sort of confusion that will be created at least for the next six months or so.

So, where do we go from here?

Under the permanent residency visa rules (as it exists today) property buyers will require a home with a value of at least €300,000 + VAT unless the existing one already cover this.

This will create difficulty for the newcomers who will have to come up with such an amount above their holiday home requirements.Besides, newcomers will need to prove an income of at least €30,000 p.a. + €5,000 p.a. for dependents, and they need to visit Cyprus at least twice a year.

These kinds of restrictions do not necessarily exist in other countries and will place Cyprus at a disadvantage.

Then again, with the mess, we found ourselves in with the citizenship-for-investments programme (golden passports) is this the right time to consider any relaxations?

One local developer operating in Paralimni, worried about losing his buyers, asked me what he needed to do.

I directed him to various websites that deal with such matters but asked, “where were you when this situation was coming up 6 months ago?”

It makes me wonder how property developers selling to Britons have not yet come up with suggestions to put pressure on the Cyprus government (currently at its lowest level of credibility regarding real estate) to safeguard their clients who are seeking greener pastures
Brilliant posting boycot.
2QuarterPints
Posts: 176
Joined: Sat Dec 31, 2016 1:55 pm
Location: Paphos 6 Months / Yorkshire 6 Months

Re: British citizens rights in EU/Cy after Brexit.

Post by 2QuarterPints »

Excellent post. Just sorting out the basics, like the Title Deeds and swimming pool debacles, would be a step in the right direction. Cyprus has so much potential that, sadly, may never be realised fully, because of situations like these being allowed to continue.
Kili01
Posts: 4651
Joined: Thu Dec 29, 2016 9:41 am

Re: British citizens rights in EU/Cy after Brexit.

Post by Kili01 »

Yes, agree with both your posts. The title deeds scandal should have been sorted out by now. The position about lifeguards for every swimming pool is diabolical ! There just aren’t enough fully qualified ones to go around. Most complexes have or should have the necessary life saving equipment situated close to the pool and a notice to say that there is no lifeguard present and people using the pool swim at their own risk.
Dee
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PhotoLady
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Re: British citizens rights in EU/Cy after Brexit.

Post by PhotoLady »

So what's the new rules for people who wish to buy a "holiday home" in Cyprus whilst keeping their residence in the UK?

As long as they spend less than the specified 90/180
combined days in Cyprus or any of the Schengen areas - and as long as they're not planning to obtain rental income from the property during their absence, is that still possible?
"Have Camera, Will Travel"
Kili01
Posts: 4651
Joined: Thu Dec 29, 2016 9:41 am

Re: British citizens rights in EU/Cy after Brexit.

Post by Kili01 »

Its not clear yet. But it may be that we are shifting back to what happened to foreigners (with the exception of those from EU member states) which we faced when we bought a property in Cyprus in 1999. Whether the British will be allowed to buy cheaper houses than the figure of €300,000 hasn't been clarified. Would be buyers may have to apply to the Council of Ministers for permission to buy- as well. Buyers will as always need to have a good solicitor to help them through the process of buying property here.
There is still a lot about the results of Johnson's unfortunate 11 th hour Brexit deal which wasn't negotiated. He was more interested in securing fishermen's rights and N Ireland..
Dee
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Dominic
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Re: British citizens rights in EU/Cy after Brexit.

Post by Dominic »

Personally I think allowing foreign nationals to inflate the property market by buying lots of property is a bad thing. Britain voted to leave the club. Wondering what Cypriot developers should have been doing 6 months ago to accommodate this is pointless. You may as well wonder what the British population should have been doing four years ago when they, not the Cypriot developers, voted to leave the EU. The Great British Public created this crock of crap. They need to learn how to deal with it.
Web Designer / Developer. Currently working on Paphos Life.
Living in Polemi, Cyprus with my wife and daughter.
Kili01
Posts: 4651
Joined: Thu Dec 29, 2016 9:41 am

Re: British citizens rights in EU/Cy after Brexit.

Post by Kili01 »

Photo Lady,
Incidentally, Cyprus isn't in the Schengen area. So visits to Cyprus are separate from visits to those countries.

Dee
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PhotoLady
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Re: British citizens rights in EU/Cy after Brexit.

Post by PhotoLady »

I thought Cyprus has already applied to become a member of Schengen?
"Have Camera, Will Travel"
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LouiseCastricum
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Joined: Wed Dec 28, 2016 10:10 am
Location: Pegeia/Peyia/Πέγεια since 1994

Re: British citizens rights in EU/Cy after Brexit.

Post by LouiseCastricum »

PhotoLady wrote: Mon Feb 22, 2021 12:52 pm I thought Cyprus has already applied to become a member of Schengen?
Yes correct!
Louise :)
Jim B
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Joined: Wed Dec 28, 2016 5:42 am

Re: British citizens rights in EU/Cy after Brexit.

Post by Jim B »

PhotoLady wrote: Mon Feb 22, 2021 12:52 pm I thought Cyprus has already applied to become a member of Schengen?
Several of our family and friends who were either on holiday, studying or working in the Schengen member countries have been allowed to visit Cyprus on their Schengen Visa. It's only the occupation that's preventing full membership.

Jim
Kili01
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Re: British citizens rights in EU/Cy after Brexit.

Post by Kili01 »

As can be seen, the two different sources are saying something quite different. But one is much more recent. Any would-be property buyers from UK are advised to check out what criteria actually will apply to them. Using a good solicitor is very important to avoid any possibly costly mistakes. The more so since an independent UK is not protected by the plethora of the EU laws.
Buyer beware!


Dee
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