CYPRUS Trends and Developments Contributed by: Marios Konstantinou and Stalo Konstantinou, George K. Konstantinou Law Firm
Real Estate Trends Current real estate trends refer to both the busi- ness environment and household life. Specific real estate trends are linked to new government policies on foreign-interest businesses and employee citizenship acquisition. Business: trends and relocating to Cyprus Regarding business, the trend is for companies from abroad to buy or rent premises in Cyprus, especially in the coastal cities. Such companies are often, but not always, call centres. Another flourishing business type is setting up and run - ning small hotels within the city rather than large hotels on the coast. Reasonable prices attract tourists since even city centres are never far from the sea in Cyprus. Several options exist when a foreign business wishes to relocate to Cyprus. These include: • registering as a foreign company with the BFU, provided specific criteria are met (see below); • opening a branch of an existing foreign com - pany upon relevant application to the Regis - trar of Companies; • registering a new Cyprus company or a European Company (SE) with the Registrar of Companies; or • performing a cross-border conversion and converting a company registered in the EU to a Cyprus company – the procedure is carried out through the Registrar of Companies. Cyprus possesses a number of attractions as an international business centre. It is poised in a strategic location between Europe and the Middle East; as an EU member, it offers politi - cal and social stability in a financial environment controlled by the European Commission and the European Central Bank.
started on 4 December 2023 and will remain open until 4 August 2024. MTR works as follows: • The government owns the Cooperative Asset Management Company, an asset management company created from the former Cyprus Cooperative Bank. In turn, the Cooperative Asset Management company established a subsidiary named KEDIPES, to manage the non-performing loans (NPLs) that were brought to light during and after the financial meltdown of 2012–13. • KEDIPES purchases the primary residence of qualifying applicants (the assets and share capital of KEDIPES are pledged to be used for the benefit of the Republic of Cyprus, in line with both entities’ co-operative roots). • The maximum value of a qualifying residence is EUR250,000. • The government pays rent for the property so the applicant can remain in residence. • After five years, the applicant may re-pur - chase the property through a new mortgage. • Applicants over 65 may remain in residence on rent terms for life. • Within the programme, an incentive has been announced to create affordable housing for foreign company professionals and employ - ees. The incentive is linked to the Cyprus Business Facilitation Unit (BFU, see below). Foreign company professionals and employ - ees will also benefit from an increase to the allowable building areas of certain residential zones. Both incentives were approved by the Council of Ministers on 20 December 2023. The programme was launched with success. On 3 April 2024, the government extended the cri - teria for eligible applicants.
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