Cyprus Legislates Against Property Owners In North

by Lorys Charalambous, Tax-News.com, Cyprus

23 March 2005

The Cyprus parliament last week passed a crucial amendment to a law providing penalties for illegal possession and use of immovable property which may allow European arrest warrants to be issued against foreign owners of Greek Cypriot properties in the occupied north of the country.

The law already existed, but provided for imprisonment of 6 months and a fine of CYP450; the new law provides for up to 2 years' imprisonment and a fine of CYP5,000. European arrest warrants can be issued only in cases where the crime committed is subject to at least 12 months' imprisonment.

The Cypriot authorities are hoping that the new law can be used in cases such as that of British couple the Orams, who were convicted in a Cypriot court of occupying an originally Greek Cypriot property in the north of the island. Although the penalties imposed (a large bill for compensation and an order for demolition of their property) can be enforced anywhere in the EU, for instance in the UK where the Orams have a property, it is only now that a request for an EU-wide arrest warrant could be made in the event of non-compliance.

In fact the Orams' case is under appeal; but it is known that many hundreds or even thousands of British buyers have been taking advantage of lower property prices in the north, despite worries over title and possible compensation claims. Now that more effective legal remedies exist, it remains to be seen how many dispossessed Greek Cypriot owners take to the courts to pursue the new owners of their properties.

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