Estate Agency Practice In Cyprus:

The Law governing the practice of estate agents in Cyprus as enacted in 2004, restricted the possibility of citizens of other EU member states to practice the profession of an estate agent in Cyprus. 

Furthermore, practice of the profession of estate agents in Cyprus by legal entities that practice legally as estate agents in other EU member states, was prohibited. Thus, the Cyprus law on the matter of estate agents had been incompatible with Directives of the EU and has been criticized by the European Community.

As a result the European Commission sent a notification letter dated 12/10/2006 to the Cypriot Minister of Interior by which it called upon the Republic of  Cyprus, as a member state of the EU, to proceed with all the necessary amendments of the relevant law in compliance with the Directive 2006/123/EC on services in the internal market, which establishes general provisions facilitating the exercise of the freedom of establishment of service providers and free movement of services between member states, and the Directive 2005/36/EC on the recognition of professional qualifications.

As a result of the European Commission’s intervention and in order to comply with the acquis communataire, the Republic of Cyprus enacted Law 118(I)/ 2007 by which new provisions of the already existed law, Law 273(I)/2004, have been introduced in order to amend the previous Law. 

The enactment of the new law has introduced the following provisions according to which the definition of an estate agent includes both individuals and legal entities:

- Any individual can register as an estate agent in Cyprus provided that he:

· is a citizen of the EU.

· is not any way legally incapable

· has not been convicted for any offence of immorality

· has acquired a recognized 3-year diploma relevant to the practice of the profession of an estate agent and one year relevant experience in a member state of the EU.

-An individual who has not acquired a recognized diploma but has acquired a 5-year experience relevant to the profession of the estate agent, is also eligible to be registered as an estate agent in Cyprus.

A legal entity can become a registered estate agent in Cyprus provided that:

· it has been established under the Laws of Cyprus or of any other EU member state

· has its registered office in Cyprus

· its exclusive purpose is the provision of services of an estate agent

· it is not under a procedure of liquidation or winding up and

· at least one of its directors or his representative who is fully authorised to provide, on behalf of that director, services of an estate agent in Cyprus, is a licensed estate agent.

In addition, the relevant law as amended, allows for individual estate agents or legal entities that provide their services in other EU member states and are not settled in the Republic of Cyprus to provide their services as estate agents in Cyprus without being necessary for them to register in Cyprus  provided that :

· they are EU citizens or established under the Cyprus Laws if referring to a legal entity

· they legally practice as estate agents in the EU member state to which they are settled and

· the estate agent or the employees via which the legal entity provides its services, have succeeded to the required exams or provide services to the Republic of Cyprus via a lisenced estate agent.

Τhe new development in relation to the Cyprus law for estate agents, has raised  several objections from Cypriot estate agents who claim to be discriminated against European estate agents, in the context of the required qualifications for practicing in Cyprus.

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