Irregularities in visa residency scheme | Cyprus Gazette

In order to obtain a residence permit, you must purchase a residential property worth at least 300,000 euros. However, it has come to my attention that in some cases realtors, intermediaries, developers and others tell potential applicants that it is not the purchase amount but the market value of the property that is decisive. A client from Larnaca was told by a realtor that by buying an apartment for the agreed price of €170,000, he would be able to obtain a residence permit because the value of the apartment was at least €300,000. This is a scam. The state will not accept such things and if clients are seduced by such assurances, they will find themselves in a situation where they have paid large sums of money for the property, as well as legal fees and other expenses, but will not have''residence permit rights. This is a dangerous phenomenon that could harm the successful measure to attract foreign investors.

The Home Office should issue a directive on this issue, clarifying its position on cost versus purchase price etc. It seems that various intermediaries and sellers are trying to convince applicants that a lower price means lower property transfer fees, which is supposedly beneficial to them, not to mention the higher income tax on resale. Another problem is that visa applications for new properties are processed within six months, while for resale the applicant can wait a year.

Another example of fraud is the overpricing of lawyers and accountants dealing with the visa process. A client from Paralimni received an offer from a lawyer of 7,500 euros for the visa process. We advised him to refuse and he received the same service from a large law firm for 2,500 euros. At the same time realtors demand a commission of about 20 percent. In one case in Larnaca, a seller agreed with a Chinese realtor to sell his house on the coast for €1,800,000, with the realtor receiving €800,000. I wonder if the Cypriot authorities accept such a high commission and if not, the seller will have to pay tax on the full''the sum of €1.8 million. This measure has brought many billions to the Cypriot economy in recent years, but due to the dishonest and greedy behavior of some local and foreign players it is under threat.

Antonis Loizou & Associates EPE - Real Estate Appraisers and Development Project Managers, www.aloizou.com.cy, [email protected]

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