Commission Sues Cyprus Over Second Home Limits
The European Commission has taken Cyprus to the EU Court of Justice for restricting EU nationals from freely buying a second home on the island. Transitional measures were in force that could restrict the purchase of second homes, but these expired on April 30th, 2009. The measures haven't been repealed yet, so now Cyprus faces financial penalties.
The authorities ignored a warning and have only submitted draft proposals to amend the property law. This infringes on the free movement of capital, said the Commission.
It is the second court case Cyprus is facing after the Commission decided to sue it over car import taxes.
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