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Updated: April 25, 2024
Our law firm has extensive experience handling all aspects of real estate, including commercial and residential property purchase transactions and disputes. Cyprus’ real estate market is rapidly evolving and expanding, and the opportunities for property investment are at their peak. Engaging property lawyers with sufficient experience and knowledge of Cyprus real estate law and procedure is essential and highly recommended.
Also, our expert team led by Marios Konstantinou can help with property taxation and estate planning:
The Cyprus legal system is based on British requirements, as Cyprus was a British colony until 1960. Further, with EU membership, Cyprus' property law, real estate laws, and regulations were harmonised in line with the European Union laws and regulations.
Cyprus immovable property law was enacted in 1946. It is regarded as the cornerstone of immovable property in Cyprus, dealing with all matters concerning the tenure, registration, disposition and valuation of immovable property within the framework of the Cyprus land registration system, in which immovable property is defined, drawn, recognised, and valued.
The Land Registry Department of Cyprus was established in 1858. It is considered one of the most advanced, reliable, and trustworthy worldwide. It was founded on the British model.
Every interest or right over or affecting immovable property (land, buildings, trees, plantations, rivers, wells, and all rights relating to estate and buildings) is registered and can be traced in the Registries of the Department.
Purchasers of Cyprus property will be very secure as any information related to their potential purchase can be traced from Land Registry records before the completion of the transaction. Also, after the purchase, their contract of sale or title deed transfer is registered or occurs at the Registry.
Depositing the contract of sale to the Land Registry gives the purchaser the right to seek specific performance of the terms and conditions of the contract. Thus, once the title deed is issued, register the property and title deed in the purchaser’s name.
As per Cyprus property law, EU citizens do not require permission to buy Cyprus real estate property. EU citizens are treated equally to Cypriot Citizens and can purchase real estate without any limits. They can register as many properties as they want in their name.
Non-EU citizens are entitled to purchase Cyprus properties but should apply for permission to register them in their names. After the contract of sale is signed, this application is submitted to the District Office of the city where the property is situated. Permission is given to all purchasers, and this procedure is currently just a formality. The required time for obtaining permission is about 2-4 weeks.
Permission is allowed, but some limits apply to each family (husband and wife). The limit is two units from the below:
After selecting a property to buy, it is imperative that the lawyer performs a due diligence check for the property, which mainly involves the following:
Each Sale Agreement for property in Cyprus must be stamped as follows:
First €5.000 | 0 |
From €5.001 - to €170.000 | 1.5‰ |
Over €170.000 | 2‰ |
The Land Registry Department requires the Purchaser to pay fees for transfers of immovable property. The Department calculates them based on the market value as estimated on the day of the transfer of the title deed, not on the sales price.
Market Value | Rate | The current rate of 50% |
First €85.000 | 3% | 1.5 % |
From €85.001 to €170.000 | 5% | 2.5% |
Over €170.000 | 8% | 4% |
i. The above transfer fees do not apply if the transaction is subject to VAT.
ii. Currently Reduced by 50%.
VAT at the rate of 19% is payable on the sale of new real estate projects.
Resale properties are exempted from VAT.
Any person buying the first permanent residence in Cyprus can apply for a reduced VAT rate of 5%.
The reduced rate of 5% VAT applies on the first 200 m2, whereas the standard VAT rate is imposed for the remaining square meters, as determined based on the buildable area.
For VAT purposes, the square meters include only the internal covered areas (do not include covered verandas or others).
The property must be used as the primary residence in Cyprus for the next ten years. Rental is not allowed.
Read more about New criteria for the VAT on primary residence introduced in June 2023
VAT at the standard rate of 19% for the supply of undeveloped building land. The VAT is imposed in cases where the supply is intended for the erection of one or more constructions, and the supply falls within the course of a person's economic or business activities.
It is noted that the supply of land is not subject to VAT in cases where the supply is an occasional transaction.
Cyprus Capital Gains Tax is imposed (when the disposal is not subject to income tax) at the rate of 20% on gains from the disposal of immovable property in Cyprus, including gains from the disposal of shares in companies that own immovable property directly.
The following are not subject to Capital Gains Tax:
The costs deducted from gross proceeds on the disposal of immovable property are the cost of purchase, adjusted for inflation up to the date of disposal based on the CPI in Cyprus.
Also, construction works and improvement costs of the property are deducted.
Other expenses related to acquiring and selling real estate are also deducted, e.g., estate agency fees, transfer fees, and legal fees.
Individuals can deduct from the capital gain the following:
N.B: The above exemptions are lifetime exemptions with a total lifetime limit of €85.430.
There is no Cyprus Inheritance Tax as it was abolished on the 1st of January 2000.
Our law firm can assist through all the purchase procedures to ensure they are done smoothly and with maximum protection for the client’s interests. We are ready to approach each new client with extra care and attention to personal/financial needs and demands. We are Limassol property lawyers, but we offer services that cover all the other cities of Cyprus, including Nicosia, Paphos, Larnaka, Protaras, and Ayia Napa.
If you need a lawyer to help you purchase a home, don't hesitate to contact us for a free personal consultation.
Do you need a lawyer to buy a house in Cyprus?
While having a lawyer when buying a house in Cyprus is not mandatory, it is strongly recommended. Lawyers assist in navigating complex paperwork, clarifying contract details, conducting due diligence on property titles, and facilitating filings at the Lands District Office for title deeds.
How much do estate agents charge in Cyprus?
In Cyprus, estate agents charge the seller a commission upon a successful sale, which is agreed upon in advance. The buyer does not pay any commission to the estate agent.
How much is the conveyancing fee in Cyprus?
Conveyancing fees in Cyprus depend on the property's value and are paid by the buyer. Rates are 0% for properties up to €5,000; €1.50 per €1,000 for properties between €5,001 and €170,000; and €2 per €1,000 for properties over €170,000, with a maximum fee of €20,000.
What is the immovable property law in Cyprus?
Cyprus's immovable property law includes laws like The Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224, The Immovable Property (Transfer and Mortgage) Law, No 9/65, and others. It covers ownership rights, transfer of these rights, and taxes on property income. All land transactions are registered and processed through the Department of Lands and Surveys.
Can you sell a property in Cyprus without title deeds?
Yes, selling property in Cyprus without title deeds is possible, especially if the property is mortgaged or the deeds haven't been issued yet. The Sale of Immovable Property (Specific Performance) Law of 2011 protects buyers in such cases, allowing registration of the sale contract at the Department of Lands and Surveys and court-ordered specific performance against the seller if necessary.
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