Our law firm specialises in all aspects of property law in Cyprus, including real estate transactions, property disputes, and property-related legal advice. We have a team of experienced property lawyers who are dedicated to providing our clients with high-quality legal services and achieving successful outcomes for their cases.
We understand that property transactions and disputes can be complex and stressful for our clients, which is why we take the time to understand their needs and concerns. Our goal is to provide comprehensive legal advice and representation that is tailored to each client’s unique situation.
Additionally, we provide legal services related to property management, including leasing agreements, tenant disputes, and maintenance issues. We advise clients on their legal rights and obligations as property owners and landlords, ensuring that their investments are protected.
Our Law Firm offers a broad range of residential and commercial property services, which include:
- Property purchase and sale agreements: We assist our clients with drafting, reviewing, and negotiating property purchase and sale agreements to ensure their legal rights are protected.
- Property due diligence: We conduct thorough due diligence on the property to ensure that there are no legal issues or liabilities that could affect our clients’ investments.
- Property management: We advise our clients on property management, including leasing agreements, tenant disputes, and maintenance issues.
- Property disputes: We represent our clients in property-related disputes, including boundary disputes, title disputes, and breach of contract claims.
- Property taxation: We provide legal advice on property taxation, including stamp duty, capital gains tax, and VAT.
Sale of Cyprus Property
We undertake all matters relating to sale of real estate in Cyprus, whether or not the seller is located in Cyprus or abroad, including:
- Preparation of Power of Attorney(s) were owner(s) are not residing in Cyprus.
- Land Registry Search (for any encumbrances and/or mortgages and/or prohibitions which may be registered οn the property, urban planning permit, building permit etc).
- Drafting, negotiating and/or reviewing the Contract of Sale.
- Undertaking the payment of debts, utilities and taxes. (When selling a property any outstanding amounts for debts, utilities and taxes must be cleared. These amounts will be communicated to you prior to the sale of the property.)
- Completion of Conveyancing.
What do I need to pay when selling property in Cyprus?
The following is an indicative list of the things you will have to pay when selling your property in Cyprus:
- Capital Gains Tax (outlined below).
- Any outstanding mortgage.
- Balances to utility authorities, local authority taxes (e.g. refuse and sewage) and management committee (if in a building block or project with communal areas).
- Agent’s commission which usually ranges from 3%-5%.
- Legal fees which are usually 1% of sale value and disbursements (e.g. for the certification of documents).
In addition, the law provides that every seller of property must deliver an Energy Efficiency Certificate but some buyers don’t insist on this.
Cyprus Capital Gains Tax on Sale of Immovable Property
Capital gains tax applies on the profit made on the sale of a property at the rate of 20%. This is calculated on the gains from the disposal of immovable property in Cyprus, subtracting the original cost and additional expenses from the proceeds of the sale. Both inflation and allowable expenses are also factored into the final amount of taxable gains.
For example, the cost of acquisition used for the calculation of the profit also includes any payments made for the improvement of the property or for any additions on the property as well as any interest paid for the acquisition.
In cases of inherited property, the original cost will be that which is shown on the title deed as at 1st January 1980. This must be adjusted to include the increase from the date of acquisition, up to the date of disposal. This increase can be estimated via Cyprus consumer price index.
Capital Gains Tax Exceptions
Individuals are entitled to certain exemptions from capital gains tax, however, these are one lifetime allowances and apply to each registered owner.
The first exemption of €17,086 occurs if the gains are obtained from the disposal of any property.
The second exemption of €85,430 occurs if the gains are obtained from disposal of primary residence. The second exemption applies only if the property in question was owned and used as the primary residence for a period of at least 5 years.
The third exemption of €25,629 relates to the agricultural land sold by the farmers.
The above allowances are not available separately. An individual claiming a combination of the above allowances in only allowed a maximum allowance of €85,430.
Estate agent fees and legal fees are also deducted when calculating the total Capital Gains Tax to be paid.
In addition to the Capital Gains Tax, as of February 2021, a new 0.4% tax on the sales of immovable property will be imposed to support Greek Cypriot refugees and paid by the seller.
Purchasing a Property in Cyprus
Buying a property is an exciting time but it can be overwhelming, especially if you’re a first-time buyer.
In Cyprus, the Immovable Property Law, Cap.224, regulates all matters relating to property registration.
There are no restrictions for EU citizens towards buying Property in Cyprus. The same applies to legal entities headquartered in Cyprus or any other European member state.
Non-EU citizens are also entitled to own properties in Cyprus after obtaining approval from the Council of Ministers and signing a Sale Agreement.
The most crucial step before a purchasing property in Cyprus is undertaking the relevant due diligence. It is crucial to cross-check whether the property is clean from any encumbrances, whether it has a clean title deed and if it complies with any planning permissions and building permits.
Burdens on the property and any non-compliance issues could prevent the issuance and transfer of the respective title deed.
What do I need to pay when buying property in Cyprus?
The following is an indicative list of the things you will have to pay when buying property in Cyprus:
- Purchase Price.
- Transfer Fees, unless the property is new, in which case VAT will be paid instead of Transfer Fees (outlined below).
- Stamp Duty & Sale Agreement Deposit Fees.
- Legal Fees and Disbursements.
- Cost of connection of utilities.
Cyprus Property Transfer Fees
Cyprus property transfer fees are payable by the purchaser and are due when the title deeds are issued and transferred to his name. It is important to note however, that there is currently a 50% discount on the below rates and transfer fees are not chargeable at all if VAT has been paid. Typically, VAT is payable on new properties.
If there is more than one buyer, the purchase price is divided by the number of buyers and the transfer fees apply for each calculated for each buyer. Each of the buyers then has a 50% discount on the transfer fees attributed to it.
| Property Value (€) | Transfer Fees (%) |
| Up to 85,430 | 3 |
| 85,430 – 170,860 | 5 |
| Over 170,860 | 8 |
For example if the purchase price is €200,000 the transfer fees are calculated as follows:
| Property Value (€) | Transfer Fees (€) |
| The first 85,430 @ 3% | 2,563 |
| The next 85,430 @ 5% | 4,272 |
| The last 29,140 @ 8% | 2,331 |
| Total Transfer fees | €9,166 |
A tip for saving money on transfer fees: Should the purchase be made in joint names, the effective value for calculation is halved.
For example if the purchase price is €200,000 (as above) and the purchase is made in joint names you can save £2,582. The transfer fees are calculated as follows:
€200.000 / 2 = €100,000 for each purchaser
| Property Value (€) | Purchaser A | Purchaser B | Total Transfer Fees (€) |
| First 85,430 @3% | 2,563 | 2,563 | 5,126 |
| Next 14,570 @5% | 729 | 729 | 1,458 |
|
|
| €6,584 |
Cyprus Immovable Property Stamp Duty
A stamp duty of 0,15% (€1,50 per €1,000) is levied on contracts with a value of up to €170,860. For any amounts thereafter, the rate is 0,2% (€2 per €1,000). The stamp duty is payable by the purchaser within 30 days of signing the contract.
Sale Agreement Deposit Fees
A fixed €50 fee is payable to the District Land Registry Office when depositing the Sale Agreement with the Land Registry Office.
Cyprus Immovable Property Value Added Tax (VAT)
Value Added Tax (VAT) at the rate of 19% generally applies to the purchase price of newly constructed immovable properties in the Republic of Cyprus. However, under specific conditions set out in the Value Added Tax Law 95(I)/2000, as recently amended by Law 42(I)/2023 and published in the Official Gazette on 16 June 2023, a buyer may claim a reduced VAT rate of 5% for their primary and permanent residence. The law has now introduced stricter criteria regarding the size and cost of the property, as well as clarifications on how the reduced rate applies and how it can be lost or reclaimed.
Under these updated rules, the 5% VAT applies only to the first 130 square metres of buildable area, as long as the total buildable area does not exceed 190 square metres and the total cost of the residence does not exceed €475,000. Once the cost or the size goes above these caps, the entire property is subject to the standard 19% VAT. Buyers whose property stays below €350,000 and 190 square metres easily qualify for the 5% on the first 130 square metres. Any area over 130 square metres is then taxed at 19%.
In order to benefit:
- The buyer must be an individual (not a company) who has reached 18 years of age.
- The buyer should not have any other property acquired earlier at a reduced VAT rate.
- The property must be used as the main primary and permanent place of residence in Cyprus for the following 10 years. If they cease to use the property as their principal dwelling before the 10-year period has elapsed, they must refund to the Tax Department the difference in VAT (i.e. 14%) proportionate to the unfulfilled period.
- The applicant does not possess any other property which is used as the primary residence in the Republic of Cyprus.
It is important to emphasise that these newly enacted provisions, replacing the old rule of applying 5% VAT on the first 200 square metres with no overall limit on size or cost, are already in effect. Transitional measures have been provided for those who obtained (or submitted an application for) planning permission by 31 October 2023, and they must submit their request for the reduced VAT to the Tax Department within three years of the amending law’s entry into force. Overall, the updated regime aims to better target the 5% VAT benefit to smaller or moderately priced principal residences and to align Cyprus’ system with EU VAT Directive 2006/112/EC. Buyers should keep in mind that once VAT is charged on the first supply of a property (e.g. by a developer), a subsequent resale by a private individual is typically exempt from VAT and subject instead to transfer fees, unless structured otherwise.