The surge in cash flows to Cyprus, with over €101.6 million entering but €90 million unchallenged legally, has prompted concerns over potential money laundering, leading the House ethics committee to intensify scrutiny on the origins of these funds. Authorities are focusing on real estate transactions as a primary destination for these substantial cash amounts, aiming to uphold Cyprus’s financial integrity and combat financial crimes.
The updated real estate laws have introduced several measures to enhance buyer protection in property transactions. Sellers are now required to provide an uptodate search certificate at contract signing, clear declarations of any property encumbrances are mandatory, registration at the Land Registry must include seller and mortgagor declarations, and a procedure for mortgage discharge upon sale completion has been outlined. These changes aim to provide buyers with more transparent information, protect them from hidden encumbrances, and ensure their investment goes towards securing their new property rather than settling unrelated debts.
A new levy, set at 0.4 percent of real estate transactions, has raised around €43 million to support refugees in financial distress. There are discussions about potential exemptions for sales involving nonperforming loans, and taxpayers who qualify may be eligible for refunds.
