Buying and Selling Real Estate in Cyprus
Buying or selling property in Cyprus involves strict legal, tax, and regulatory steps. We provide expert guidance on due diligence, sale agreements, transfer of title, and compliance with Cyprus property law.
Real Estate
Secure Property Transactions
Introduction
The purchase or sale of immovable property in Cyprus is often one of the most important financial decisions an individual or business will make. While the island offers a favourable legal and investment framework, the process is regulated by strict property, tax, and compliance rules. Engaging an experienced real estate lawyer is essential to safeguard your rights, minimise risks, and ensure that the transfer of ownership proceeds smoothly and lawfully.
Due Diligence Before a Property Transaction
The first step in any property transaction is a comprehensive due diligence exercise. Buyers must ensure that the seller has clear legal ownership and that the property is free from charges, encumbrances, or other restrictions.
Title Deed
The Title Deed issued by the Department of Lands and Surveys confirming legal ownership.
Property Search Certificate
Reveals mortgages, liens, memos, or third-party rights registered against the property.
Planning & Building Permits
For buildings and apartments, the relevant planning and building permits, certificate of final approval, and architectural plans.
Mortgage Waiver
If the property is mortgaged, the seller must obtain a waiver from the lending bank before the transfer.
Zoning Compliance
For land acquisitions, confirm that the plot is suitable for construction and complies with zoning regulations.
Developer Track Record
Consider the track record and reliability of the property developer when purchasing off-plan or new-build projects.
The Sale Agreement and Stamp Duty
Once due diligence is complete, the buyer and seller negotiate and sign a Sale Agreement. This contract must clearly set out the purchase price, payment terms, delivery of possession, transfer of title, remedies for breach, and — in the case of new properties — the defect liability period.
Stamp Duty Calculation
The agreement must be stamped by the Tax Department within 30 days of signing. Late submission results in penalties.
Transfer of Title and Possession
Tax Clearance Requirements
Before the property is officially transferred, the seller must secure a Tax Clearance Certificate by paying all outstanding taxes and fees, including:
- Capital Gains Tax
- Municipal and local authority taxes
- Sewerage and water board charges
Transfer Fees
Transfer fees, payable by the purchaser, are assessed on the property's market value:
If the transaction is subject to VAT, transfer fees are exempt. For non-VAT sales, a 50% discount applies.
Permits for Non-EU Nationals
Cypriot and EU citizens can acquire and register property in their own name without restriction. However, third-country nationals must first obtain permission from the Council of Ministers before the transfer can be registered.
Council of Ministers Permission
This involves submitting an application through the District Officer, supported by personal and financial information. Our legal team can assist with preparing and submitting this application to ensure a smooth approval process.
Our Legal Services
At Psavvides Law Office, we provide end-to-end legal support for property transactions, including:
Full due diligence on seller and property
Drafting, reviewing, and negotiating Sale Agreements
Applications for Council of Ministers' permits for non-EU buyers
Advice on tax implications and transfer fees
Representation at the Land Registry and completion of transfers
Assistance with property finance, mortgages, and developer sales
Guidance on planning, zoning, and estate planning matters
Ready to Buy or Sell Property in Cyprus?
Our experienced Paphos lawyers ensure that every stage — from due diligence to transfer of title — is handled with precision and efficiency. Contact us today for expert legal guidance on your property transaction.