Commercial Property for Sale in Cyprus: Offices, Shops and Hotels

Non-EU individuals need a permit to buy property for personal use, but business purchases through Cypriot companies follow different rules. VAT may apply to new commercial buildings. Check zoning, usage and licences, and consult a Cyprus lawyer; see the Cyprus buying guide.

• Title and encumbrances.
• Use class and planning permits.
• Leases and arrears.
• Licences, especially for hospitality.
• Seasonality.
• Condition and energy performance.

Commercial deals in Cyprus turn on the lease. A tenant on a long lease with indexation may justify a higher price, while a vacant shop in a quiet street may take a year to let. Ask for the lease, rent history, deposit and details of any guarantees, and check whether the tenant has rights under the Rent Control law that could limit your ability to raise the rent or end the tenancy. Visit at different times of day, and in winter, to see footfall. For hotels and restaurants, ask about licences from the Cyprus Tourism Organisation and municipal health approvals, and find out whether they pass to a new owner.

Seller's tax clearance, local rates and any outstanding communal charges should be confirmed before completion. Consider structuring the purchase through a Cypriot company if your adviser recommends it, since this can affect VAT recovery, withholding taxes and the way you exit. Banks lend against commercial property with higher equity requirements than for homes, so expect to put down a large deposit and see the financing guide for a general view.