[BUYING AND SELLING REAL ESTATE IN CYPRUS]
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Registry. Such leasehold title deeds can be issued for long leases i.e., 15 years or over and subject to the provisions of the lease, can be sold, transferred, or mortgaged at the holder’s option. F. Types of Business Entities The most common forms of business entities established in Cyprus are (a) limited companies; (b) partnerships; and (c) alternative investment funds. Non-Cypriot investors and high net worth individuals also commonly form further Cyprus international trusts. Private Company limited by shares Cyprus companies are registered under the Companies Law, Cap 113 as amended. The private company limited by shares is the most common form of entity established in Cyprus. It has legal personality separate and distinct from its shareholders with the liability of shareholders limited to the unpaid amount of their subscribed shares. There is no requirement for a share capital and generally there is no restriction as to its availability to carry on business activities even where its share capital is small. Public Company limited by shares A public limited liability company is similar to a private company in terms of its features. It must have at least seven shareholders and a minimum share capital of Eur. 25.629. Unlike a private company, a public company is permitted make offerings to the public and can be listed on the stock exchange upon satisfying certain criteria. Partnerships Partnerships are regulated by the Partnerships and Business Names Law Cap 116, as amended, and they may form either as general partnerships or limited partnerships. In general partnership all partners have unrestricted liability for all obligations of the partnership. In a limited partnership at least one partner is
treated as a general partner and has unrestricted liability for the partnership’s obligations with the other partners having limited liability up to the amount contributed (or remaining unpaid) by them to the partnership. Fund With the enactment of the Alternative Investment Funds Law of 2018, Cyprus has modernized its legal framework regulating the registration and operation of alternative investment funds (AIF’s). The Law permits the registration of AIFs which are self – managed (by their board of directors) or externally managed by a fund manager and may be registered with unlimited number of persons or with limited number of persons, or as “Registered” AIFs. An AIF may be formed as a company with a fixed capital, a company with variable capital, a common fund or as a limited liability partnership
with or without legal personality. Trusts and Beneficial Ownership
The concept of “trust” is recognized under Cyprus law, and it is regulated by both statute and common law principles. Accordingly, real estate property can be made part of the trust estate and afford to the beneficiaries the rights that the settlor provides in the trust instrument. Trusts can be registered with the Land Registry Office over the real estate to which they relate to. The beneficiaries do not hold title over the real estate, as title is registered in the name of the trustee to hold it under the terms of the trust. The settlor appoints trustees. The trustees’ main duties are to administer the trust property prudently and to comply strictly with the terms of the trust. The general rule is that the trustees do not have the power to vary the terms of the trust under any circumstances. The Cyprus International Trust (CIT) The Cyprus International Trusts Law has been coming in force in 1992 and the last amendment
ILN Real Estate Group – Buying and Selling Real Estate Series
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