Real Estate
Property Purchase
“Professional legal guidance for purchasing property in Cyprus, from contract to completion.”
We have extensive experience in real estate cases in Cyprus.
We assist our clients in the Purchase of their immovable properties and guide them through the whole legal procedure, from the initial stages of their transaction to their final completion.
Our Services
Our services include a background check of the property, negotiating, drafting and reviewing of purchase agreements and advising on financing matters, tax impositions and properties planning and building permits requirements.
PURCHASING a property in Cyprus within 3 comprehensive steps:
1. Counseling the proposed Purchaser on the properties Legal Status:
- Existence of a Separate Title Deed OR Deposited Sales / Assignment Agreement for the Property.
- Conduct of Property Due Diligence for any Encumbrances (e.g., mortgage, memo, forced sale, right of way, open files for borders demarcation and/or any other).
- Advising on Town planning, Zoning rules, Planning & Building permits and architectural plans for the Property, whether the property concerns a residential or commercial plot, a property under construction, a property constructed in a co-owned building, a field or a shop.
- Compliance with AML (Anti-Money Laundering) laws and client KYC checks.
2. Drafting, Reviewing & Negotiating the terms of the Agreement in accordance with the Purchaser’s instructions, concerning:
- Property Purchase Price, Payment Mode and Currency.
- Property Contents.
- Encumbrances.
- Property Structural Condition, Property Amendments and Construction Terms.
- Possession Date of the Property and Completion Date of the Transaction.
- Taxes, VAT, Utilities and Common Expenses.
- Insurance Policy, Advertisement and Tenancy.
- Council of Ministers Permits.
- Compliance with AML (Anti-Money Laundering).
3. Completion of the Purchaser’s Property Transaction
- Calculation and Stamping of the Agreement at the Tax Department.
- Deposition of the Property Agreement at the District Land Registry.
- Submission for Reduced to 5% VAT Application (if applicable).
- Obtain of the Council of Ministers permit (if applicable).
- Liaising with the Parties necessary-Communicating with the Seller’s lawyer, Land Registry, Bank Institutions, Currency Broker, Developer, Estate agent.
- Physical Presence at the District Land Registry for the transfer of the title deed (if applicable).
- Payment of deposition and/or transfer fees at the District Land Registry.
- Transfer of Utilities in the Purchaser’s name.
Benefits
• Strategic Location-Investment in the Center of Everything
Cyprus is at the crossroads of Europe, Asia, and Africa, making it an ideal base for residence, business, employment, travel, or retirement.
• Warm Mediterranean Climate
Over 300 days of sunshine a year, with mild winters and hot summers — perfect for holiday homes or year-round living.
• Thriving International Communities
Large, friendly international population from the UK, Russia, Europe, and beyond. Many services are addressed to International Purchasers.
• High Quality of Life
Cyprus ranks highly for safety, healthcare, and overall quality of life. English is widely spoken, especially in legal and real estate sectors. High-quality legal, accounting, and business support system.
• Safe and Transparent Purchasing Process
The Cyprus government has streamlined the property transfer process aiming high standards of safety for International Purchasers, and lawyers play a key role in ensuring due diligence and compliance.
• Stable Legal System based on English Common Law
A familiar system for many International Purchasers which robust protection of property rights.
• Reputable Banking System
Access to top-tier local and international banks.
• International Business Centre
Especially in finance, shipping, tech, and professional services.
• Diverse Property Options & Strong Property Investment Potential
Cyprus offers something for every budget, lifestyle and purpose (residential or business), from seafront villas to mountain cottages, city apartments, offices, shops and industrial spaces.
Coastal cities like Limassol, Larnaca, and Paphos are developing at a fast pace.
Rising Rental Income from Tourists and Students.
Increasing demands for luxury villas and retirement homes.
• Tax Regime
No inheritance tax, Low property taxes, potential for Double taxation relief, potential 0% capital gains tax on some transfers depending on specific exemptions.
• Permanent Residence by Investment-Fast Track Reg. 6(2)
Non-EU Purchasers can qualify for permanent residency through property investment of at least €300,000, provided that certain requirements are met.
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FAQ
1. What is a Reservation Deposit Agreement?
A reservation deposit agreement is made between the Seller and the Purchaser for a specific amount. The Seller is usually obliged to remove the property from the market during the reservation period.
The reservation fee is based on the purchase price and is normally between €1,000 and €10,000, depending on the situation, and is usually held in trust by the estate agent or the Seller’s lawyer until the agreement is finalized.
2. Is a Reservation Agreement compulsory?
A Reservation Deposit Agreement is not compulsory and it is in the discretion of the Seller and Purchaser to entered into the said Agreement prior to the signing of their Sales / Assignment Agreement.
3. Is it possible for Property to be sold through Probate?
Yes, provided that the relevant probate order appointing an Administrator of the Deceased estate and the relevant probate tax clearances have been issued.
4. Is it possible for a Property to be transferred as a Gift?
Yes, the transfer of Property as a gift is usually taking place between persons who have family bonds with each other, e.g., parents to children.
5. Who needs a Council of Ministers Permit and are there any conditions for its issue?
A Third Country National registering a Property in his/her name in Cyprus needs a Council of Ministers permit. A National or European Union Citizen does not need Council of Ministers permit.
There are specific conditions for the issue of the Council of Ministers permit, as to the number, the size and the type of a Property or Properties the Third Country National is entitled to acquire in Cyprus.
6. What if I am Not in Cyprus to handle my Property Purchase or I need a third party to handle with my transaction for any other reason whatsoever?
When such circumstances arise, it is possible for the Purchaser to grant a power of attorney appointing a third party as their representative for the purposes of their transaction in Cyprus.
Our Law Firm’s members may also undertake to act on the behalf of the Purchaser or the Seller through the whole conveyancing procedure as their lawful legal representative, before all the necessary government authorities in Cyprus, provided that a relevant power of attorney is granted.
Please note that as soon as the drafting of the relevant power of attorney is concluded, it will need to be properly signed and duly stamped and certified.
7. How long does it take for the Property Purchase to be completed?
The Purchase can take several months, depending on the specific circumstances of each property purchase, e.g., whether a sales or an assignment agreement will need to take place.
It’s advisable to work with a Cyprus lawyer to navigate potential delays and ensure all legal requirements are met.
8. Is a Purchaser able to rent his/her Property?
Yes, a Purchaser can rent out his/her property.
However, rental income must be declared in Cyprus, and there are regulations regarding short-term rentals in certain areas.
On another note, GESY and Defence contributions, are also imposed on rental income.
Additionally, you may need special licenses for holiday rentals in accordance with the “Law on the Regulation of the Establishment and Operation of Hotels and Tourist Accommodation of 2019”.
VAT, might also be imposed where the Property is rented for the purposes of running a business.
9. Why shall a Property Purchaser instruct a lawyer to monitor his/her transaction?
Hiring a Cyprus lawyer is highly recommended, since a lawyer will assist with due diligence for the Purchaser’s transaction, ensure the property is free from encumbrances, draft or review the Contract of Sale, and guide the Purchaser through the whole transaction process, securing the Purchaser’s legal rights in the best way possible.
*The above constitute general information and does not substitute professional legal advice or consultation, which shall be sought prior of taking any action.