Cyprus Property

Cyprus Property Law: Key Issues and Advice from Lawyers

Cyprus, an enchanting Mediterranean island with a rich cultural history, has been attracting property investors and expatriates for many years. Its pleasant climate, stunning beaches, and robust economy make it an ideal destination for property investments. However, before purchasing property in Cyprus, it is crucial to understand the complexities of Cyprus property law to avoid potential pitfalls and ensure a smooth transaction. This article will explore the key issues in Cyprus property law, providing guidance and advice from experienced lawyers in the field.

1. The Importance of Legal Representation

When dealing with property transactions in Cyprus, it is essential to have a knowledgeable lawyer by your side. The legal system in Cyprus is based on English common law, which may be familiar to British investors but can be quite different from the civil law systems found in many other countries. A local lawyer who is well-versed in Cyprus property law can help navigate the complexities of the legal process, provide sound advice, and protect your interests.

2. Title Deeds and Ownership

A significant issue in Cyprus property law is the delayed issuance of title deeds. A title deed is the legal document that proves ownership of a property. In some cases, title deeds may take several years to be issued due to bureaucratic delays, developer issues, or other factors. This can create uncertainty for property buyers and sellers and may result in disputes.

To protect yourself, always ensure that the seller has a clear and unencumbered title to the property. If the property is new or under construction, it is essential to have a written agreement with the developer that explicitly states your rights as the buyer and the conditions for transferring the title deed upon completion. Your lawyer can help you draft and review such agreements.

3. Property Taxes and Fees

Purchasing a property in Cyprus involves various taxes and fees that must be factored into the total cost of the transaction. These can include:

  • Transfer Fees: Payable to the Department of Land and Surveys upon transferring the property’s title deed to the new owner. Transfer fees are calculated based on the property’s market value and can range from 3% to 8%.
  • Stamp Duty: A one-time fee payable on property purchase agreements. The rate is 0.15% on the first €170,000 and 0.20% on amounts exceeding €170,000.
  • Immovable Property Tax: This tax was abolished in 2017, but it is essential to ensure that all outstanding immovable property taxes have been settled by the seller before purchasing the property.
  • Capital Gains Tax: Payable on the profit made from selling a property in Cyprus, currently at a rate of 20%.
  • VAT: New properties are subject to VAT at a rate of 19%. However, first-time buyers may be eligible for a reduced rate of 5% if the property is their primary residence.

Your lawyer can advise you on the taxes and fees applicable to your specific property transaction and help you factor them into your budget.

4. Due Diligence

Before purchasing a property in Cyprus, it is essential to conduct thorough due diligence. This includes:

  • Property Inspection: Inspect the property thoroughly, preferably with the help of a professional surveyor. Look for potential issues such as structural defects, dampness, or illegal extensions.
  • Land Registry Search: Conduct a search at the Department of Land and Surveys to verify the property’s details, such as the title deed, encumbrances, or planning permissions.
  • Planning and Building Permits: Ensure that the property has the necessary planning and building permits and complies with local regulations.
  • Utility Connections: Confirm that the property has proper connections to water, electricity, and sewage systems.
  • Neighbors and Surroundings: Assess the property’s location, its immediate surroundings, and the neighborhood. Consider factors such as noise levels, access to amenities, and potential future developments that may affect the property’s value or desirability.
  • Legal Due Diligence: Your lawyer should thoroughly review all relevant legal documents, such as the sales contract, title deed, and permits, to ensure that everything is in order and complies with Cyprus property law.

5. Contract of Sale and Deposit

Once you have chosen a property and completed your due diligence, the next step is to sign a contract of sale. The contract should detail the terms and conditions of the property transaction, including the agreed-upon price, payment terms, and any other relevant information. Your lawyer should review the contract carefully to ensure that your interests are protected.

Upon signing the contract, you will typically be required to pay a deposit, usually around 20-30% of the purchase price. This deposit serves as a guarantee of your intention to purchase the property and can be forfeited if you fail to complete the transaction.

6. Non-Cypriot Buyers and Property Restrictions

Non-Cypriot buyers must obtain permission from the Council of Ministers before purchasing property in Cyprus. Although this process is usually straightforward, it can take several months to complete. Your lawyer can help you prepare the necessary documentation and guide you through the application process.

Additionally, non-Cypriot buyers are subject to certain property restrictions. For example, they can only purchase:

  • One apartment or house
  • A plot of land up to 4,014 square meters (approximately one acre)
  • A piece of land with a building under construction up to 4,014 square meters

It is essential to understand and comply with these restrictions to avoid potential legal issues in the future.

7. Property Financing and Mortgages

If you require financing to purchase a property in Cyprus, several local and international banks offer mortgage products specifically tailored for property purchases. Mortgage terms, interest rates, and eligibility criteria can vary widely, so it is essential to shop around and compare different mortgage products to find the best deal for your circumstances.

Keep in mind that obtaining a mortgage in Cyprus may involve additional fees, such as arrangement fees, valuation fees, and legal fees. Be sure to factor these costs into your overall budget when considering a property purchase.

8. Completion and Handover

Once all the necessary documentation has been prepared and approved, and the required permissions have been obtained, the final step in the property transaction is completion and handover. This process typically involves the following steps:

  • Payment of the outstanding balance of the purchase price
  • Payment of any applicable taxes and fees
  • Signing of the transfer documents at the Department of Land and Surveys
  • Issuance of the title deed (if available) or confirmation that the process has been initiated
  • Handover of the property keys and possession

Your lawyer should be present during the completion and handover process to ensure that everything goes smoothly and your interests are protected.


Purchasing property in Cyprus can be an exciting and rewarding experience, but it also involves navigating a complex legal landscape. By understanding the key issues in Cyprus property law and seeking advice from experienced lawyers, you can minimize risks, protect your investment, and ensure a smooth and successful property transaction. With the right guidance and due diligence, you can enjoy the many benefits of owning property on this beautiful Mediterranean island.

More Posts

Cyprus Arbitration Day 2024

Cyprus Arbitration Day 2024 As Cyprus continues to strengthen its position as a global hub for arbitration, an upocoming second ‘Cyprus Arbitration Day’ (CAD) is

Send Us A Message

Our goal is to help people in the best and most practical way possible. Contact us today for a free consultation. 

Quick Links