Cyprus-Forum.com

[Wingnut]

Properties: Worse days to come, Loizou says
First Published: 02/12/2008 07:00:53

The property sector seems to go through a period of long recession and things might deteriorate in the next three years. In his interview to StockWatch, property valuator, Antonis Loizou made his forecasts for the current condition, stressing that the price of tourist properties have already dropped significantly by up to 20%.

Mr. Loizou’s forecasts are in line with the forecasts of hundreds of businessmen who were included in the three surveys presented by StockWatch in the past few months and differ from the figures prepared on behalf of BuySell according to which there is an annual increase of 10%. The statements of Mr. Loizou, who has one of the biggest historic data bases in the domestic market, are released after the publication of the Central Bank’s estimates that the growth rate will fall to 2% in 2009, the lowest since 2003.

In his interview, Mr. Loizou said that things in the property market will be clarified when the negative impacts from the global crisis affect the island’s tourism. “It might be the proper period for purchases”, he supported.

On the other hand, he expects that the crisis will have longer duration and bigger depth. “Since the estimates referring to a crisis will come true, in 2009, possibly in 2010 and probably in 2011, prices will drop as those who have borrowed will not be able to bear the burden”, he noted.

As for the developers, Mr. Loizou said that their new projects have frozen. “You must be lunatic to build at the current stage since the banks do not lend and a significant number of properties remains unsold”, he stressed.

With regard to the dismissals, Mr. Loizou agreed with the construction workers who declared recently that by the next summer we will reduce the size of the crisis with the dismissal of 20 thousand employees in the sector. “Dismissals have already started in the seaside towns”, he added.

Commenting on the measures that the Interior Ministry plans to take within the framework of the revision of the local plans, Mr. Loizou favours the taxation of the vacant plots as a measure to restrain prices.

[coremax]

A Canadian friend has been asking me about properties in Cyprus, does anyone know if it's possible to acquire citizenship or a residence permit if she buys a house?

[Tim Drayton]

A Canadian friend has been asking me about properties in Cyprus, does anyone know if it's possible to acquire citizenship or a residence permit if she buys a house?

I think there are provisions for retired people to get rolling one-year residence permits upon providing the authorities with evidence that they have a pension income above a certain limit - I don't know the precise details. Apart from that, you would have to have a prospective employer to sponsor you. I believe you can apply for citizenship after five years' residence.

[coremax]

Tim, from what you say I think that is possible then. In many countries you may acquire a property which can be taken as an 'investment over a certain amount' you're provided with a residence permit, and depending on the country's regulations (in Canada it's said to be 3 years, 5 years in UK), you can apply for a citizenship through an 'indefinite right to remain' after you hold the residence permit for the specified amount of time.

I believe his idea is to buy a seaside house (or may be a flat) while the prices are low, and I'll be keeping the keys while he's back in Canada Any additional resources concerning this would be appreciated, even a property consultant, or a law firm maybe?

[Tim Drayton]

Tim, from what you say I think that is possible then. In many countries you may acquire a property which can be taken as an 'investment over a certain amount' you're provided with a residence permit, and depending on the country's regulations (in Canada it's said to be 3 years, 5 years in UK), you can apply for a citizenship through an 'indefinite right to remain' after you hold the residence permit for the specified amount of time.

I believe his idea is to buy a seaside house (or may be a flat) while the prices are low, and I'll be keeping the keys while he's back in Canada Any additional resources concerning this would be appreciated, even a property consultant, or a law firm maybe?

Hold your horses. To qualify for this scheme you have to be totally economically inactive in Cyprus and to have a regular income (usually a decent pension) that you are bringing into the country. Just bringing in one lump sum to buy a property is not, as far as I know, enough. I am not particularly well qualified to comment, but loads of British people including my parents retired here before Cyprus joined the EU, and they were able to get residence status quite easily provided their pension income was above a set minimum level.

[coremax]

Hold your horses. To qualify for this scheme you have to be totally economically inactive in Cyprus and to have a regular income (usually a decent pension) that you are bringing into the country. Just bringing in one lump sum to buy a property is not, as far as I know, enough. I am not particularly well qualified to comment, but loads of British people including my parents retired here before Cyprus joined the EU, and they were able to get residence status quite easily provided their pension income was above a set minimum level.

Pension is not an option, he's nowhere near retirement, and there's no way he can be economically inactive, although he's not going to make business, or work in Cyprus (he'll be in for holidays - so he doesn't need a working permit), he still needs to buy stuff to live, and spend for other expenses. Any idea where I can forward him to talk to? (Otherwise I need to charge him for consultancy from this point on )

[CBBB]

He can buy a property and use it for holidays without any kind of permit to stay here. He will need approval of the Council of Ministers, but this is a almost always granted. Make sure he gets a good lawyer!

[Svetlana]

Buying a property here will not entitle anyone to a Residency Permit, but conversley one is not required, to buy property here. She will be allowed to purchase only one property, unless she sets up a company.

Lana

[coremax]

Can you advise some lawyers to contact regarding this issue?

[Tim Drayton]

I think this is the basic information about getting residence permits for non-EU nationals. You need to fit into one of the following categories and most probably this will be category F. I suspect the figure given is now out of date, but basically, as I have said, you will have to demonstrate to the satisfaction of the immigration department that you have a regular income which does not originate from economic activity in Cyprus above a certain minimum limit.

http://www.moi.gov.cy/moi/citizenschart ... enDocument

Aliens may make an application to obtain an Immigration Permit on the basis of one of the Categories referred to in Regulation 5 of the Aliens and Immigration Regulations of 1972. An Immigration Permit will not be granted to anybody unless the Immigration Control Board recommends to the Minister of Interior that such person belongs to one of the following Categories:

Category A:
Persons who intend to work as self employed in agriculture, cattle breeding, bird breeding or fish culture in the Republic, provided that they have in their possession adequate land or a permit to acquire same, they have fully and freely at their disposal capital of CY£250,000 and such an employment should not negatively affect the general economy of the Republic.

Category B:
Persons who intend to work as self employed in mining enterprises in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of CY£200,000 and such an employment should not negatively affect the general economy of he Republic.

Category C:
Persons who intend to work as self employed in a trade or profession in the Republic, provided that they have in their possession a relative permit, they have fully and freely at their disposal capital of CY£150,000 and such an employment should not affect negatively the general economy of the Republic.

Category D:
Persons who intend to work as self employed in a profession or science in the Republic, provided that they have academic or professional qualifications, for which there is demand in Cyprus. Possession of adequate funds is also necessary.

Category E:
Persons who have been offered permanent employment in the Republic, which will not create undue local competition.

Category F:
Persons who possess and have fully and freely at their disposal a secured annual income, high enough to give them a decent living in Cyprus, without having to engage in any business, trade or profession. The annual income required should be at least CY£5,600 for a single applicant and moreover at least CY£2,700 for every dependent person, but the Immigration Control Board may demand additional amounts as necessary. Most applicants come under this Category, the majority of them being pensioners or retired persons.

For the granting of an Immigration Permit application is submitted on form M.67 to the Civil Registry and Migration Department directly or through the District Aliens and Immigration Branches of the Police. The application should be accompanied by the appropriate documents, depending on the Category for which it is submitted. Applications for Category F which are the most usual should be accompanied by the original of documents regarding the income of the applicants. Applicants who are abroad may submit an application directly to Cyprus, as stated above or through the local Consular Authorities of the Republic of Cyprus. The applications are examined by the Immigration Control Board which submits a relevant suggestion to the Minister of the Interior for a decision to be taken.


Fees

The fees for the granting of Immigration Permit amount to CY£70 and are paid against a receipt following the approval of the application and before the issue of the Immigration Permit.

For more information those interested may communicate with the telephone 22804502 and fax 22804587.