[BUYING AND SELLING REAL ESTATE IN CYPRUS]
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Ownership of shares Where real estate property is owned collectively by more than one person, they are registered with the Land Registry as co- owners of the whole of the property, with each of them as owner of a specified share in the property (e.g., 1/2, 3/4, 4/56 as they case may be Separation/allocation agreements are possible to be concluded, to designate and regulate the co- owners’ rights over the different parts of the property. The co-owners can together lease or sell the property. Each of them has the right to mortgage or sell his share, subject to the rights of first refusal provided under the law for the other co-owners. Leasehold Ownership Leasehold Ownership confers on the Leasehold title deed holder those rights which are provided in the lease which is deposited with the Land 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. 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. Further Cyprus international trust are also commonly formed by non-Cypriot investors and high net worth individuals. ✓ 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 like 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
ILN Real Estate Group – Buying and Selling Real Estate Series
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