Property lawyers in Cyprus

We are Cyprus property lawyers with extensive experience handling all aspects of real estate law, including commercial and residential property purchase transactions and disputes.

Our legal services

George K. Konstantinou Law Firm offers the following real estate services at fixed fees:

• Due diligence before the property purchase.
• Drafting property reservation agreements and advice on the procedure to be followed.
• Real estate sale agreements draft or review.
• Power of attorney preparation for the purchase or sale of real estate.
• Obtaining permission for foreigners to acquire property in Cyprus.
• Land Registry services.
• Real estate gift transfers between family members.
• Rental agreement advice and preparation.
• Reduced VAT applications.
• Legal representation in property disputes.
• Online consultations and services for international clients to purchase property without visiting in person.
• Obtaining permanent residency in Cyprus by real estate investment.

We assist in opening private and corporate bank accounts and transferring funds to Cyprus, ensuring compliance with strict AML regulations. We can also help with company formation in Cyprus for property management and tax optimization.

Also, our expert team led by Marios Konstantinou can help with property taxation and estate planning:

• To safeguard our clients' financial interests, we provide expert advice on property-related taxes, including capital gains, immovable property tax, and stamp duty.
• We advise on estate planning and inheritance law, particularly in drafting wills and managing property succession, ensuring compliance with Cypriot laws.

If you need a conveyancing lawyer to help you sell or purchase a home, don't hesitate to contact us for a free personal consultation.

How much do property lawyers in Cyprus charge?

The costs and fees of a real estate lawyer depend on the complexity, value, and other factors of each transaction. The minimum legal fee in Cyprus is currently €2,500.

Cyprus property law

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

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.

Land Registry Department

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. It 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.

The number of properties allowed for foreigners

Purchase of Cyprus property by EU citizens

As per Cyprus property law, EU citizens do not require permission to buy Cyprus real estate. They 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.

Purchase of Cyprus property by foreigners (non-EU citizens)

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:

• Apartment or house.
• A villa on a plot of land up to 4014 m².
• A plot of land up to 4,014 m² provided that a residence will be constructed soon.
• One office (maximum 250 m²) OR shop (maximum 100 m²), plus a house or apartment.

Permission might be granted under certain conditions to acquire bigger plots of land or other property types (offices, commercial, industrial, etc.).

A Non-EU spouse of a Cypriot citizen does not need such permission to purchase property.

The process of buying property in Cyprus

Step 1. Due diligence

After selecting a property to buy, it is imperative to appoint a property lawyer in Cyprus who will perform a due diligence check for the property, which mainly involves the following:

• Confirm with the Land Registry office (land registry search) whether the property has any mortgages or burdens. If there are, the lawyer arranges for the so-called waiver, a critical document that makes your sales contract prevail over any existing seller liabilities to the bank concerning the property.
• Negotiate the payment terms.
• In the case of a property under construction, all the necessary planning and building permits have been obtained to ensure that the architecture plans and specifications are attached to the contract.
• In the case of a land purchase, verify the building zones (how many square meters you can build on) and ensure that the intended use of any planned buildings is permitted. And verify that utilities can be connected to the property.

Step 2. Reservation deposit & Agreement

• Upon signing the reservation agreement and payment of a reservation deposit, the property is taken off the market for a specific period until the contract of sale is prepared and the parties are ready to finalise the transaction.
• Reservation deposits vary depending on the property's price but are usually 1-2% of the purchasing price.

Step 3. Contract of sale

• Once all the preliminary steps above are made, the buyer and the seller sign a contract of sale.
• If the Purchaser is abroad, all the procedures can be done through Power of attorney. It can be signed and certified in Cyprus or abroad at the Cyprus Embassy or Consulate or be endorsed by a Notary Public and bear the Apostille Stamp.
• Upon signing the contract, the conveyancing lawyer applies to the so-called Council of Ministers to obtain a permit to purchase the property (it’s required for non-Cypriot buyers and is a pure formality, as mentioned above).
• The sale contract must include a land registry search no older than five days from the contract's signing date.

Types A or C are also needed if the property is subject to a mortgage.

Type A is a document signed by the seller and the lender of the mortgage which confirms that:

• When 95% of the mortgage is repaid to a specified bank account, the lender must issue a Type B receipt to the Purchaser. If the lender fails to remove the mortgage, the Purchaser can present the Type B receipt to the Land Registry for the title deed transfer.

Type C is a document signed by the Purchaser indicating that he does not wish to be protected by Type A.

Step 4. Registration of Contract of the sale in the Land Registry

• When contracts have been signed, the Purchaser's lawyer takes the signed contracts to the Inland Revenue Department to be stamped. Stamp duties are payable on each contract for real estate purchase, depending on the purchase price (as below).
• When the signed contracts have been stamped, they are taken by the Purchaser (or his lawyer or representative) to the Land Registry Department to be lodged/registered for Specific Performance purposes.
• The Lands Office stamps the contract and records it in the Land Registry. It secures the buyer’s ownership rights until a separate title deed is issued.

Step 5. Tax clearance

Before the transfer of the title deed, the seller must apply for tax clearance. This is for properties that already have their own title deed. Once the seller pays his taxes (if any), the tax department will issue a tax clearance form (N.313).

The seller must also pay any pending bills: municipal, sewerage, common expenses, electricity, and water.

Step 6. Transfer of title deed

• If the seller has a title deed (ownership certificate) for the property, the transfer of the title deed in the name of the new owner can be done immediately. Typically, this is the case when buying a resale.
• If the property is brand new, the seller (developer) usually does not have a separate title deed. Until then, the buyer's ownership rights are guaranteed by registering the sales contract at the Lands Office.

Step 7. Land Registry procedure for transfer

The seller or his property lawyer needs to submit to the Land Registry the following documents:

• Land Registry forms
• Tax Clearance 
• Confirmation from municipality, sewerage, and water departments that all bills are settled
• Copies of passports or IDs of the parties
• Power of attorney (if applicable)

The Land Registry will need a few days to review those documents. Then, it will notify the parties about the date and time for the transfer of the title deed.
The parties will need to attend. They will confirm the property details and that the purchase price has been paid.
Then, the Registry will issue the title deed in the buyer's name on the same day.

Cyprus property taxes & duties

Stamp duty

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‰

Property transfer fees

The Land Registry Department requires the Purchaser to pay fees for transfers of immovable property. The Department calculates them based on the market value estimated on the day the title deed is transferred, not 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 on property

VAT at 19% is payable on the sale of new real estate projects.

Resale properties are exempted from VAT.

The reduced VAT rate of 5% on the acquisition of primary and permanent place of residence in Cyprus

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 on our website about the New criteria for the VAT on primary residence introduced in June 2023

The VAT on plots – Building land

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

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.

Exemptions

The following are not subject to Capital Gains Tax:

• Lands or land with buildings acquired between 16th July 2015 and 31st December 2016 are exempt from CGT (subject to certain conditions) upon their disposal.
• Transfers arising on death.
• Gifts made from parent to child, between husband and wife, or up to third-degree relatives. Contributions to a company where the corporation's shareholders are members of the donor’s family.
• Gifts by a family company to its shareholders.

Calculations of Cyprus 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, such as estate agency fees, transfer fees, and legal fees, are also deducted.

Exemptions from Capital Gains Tax

Individuals can deduct from the capital gain the following:

• Sale of a private residence (subject to certain conditions) €85.430
• Sale of agricultural land by a farmer €25.629
• Any other transaction €17.086

N.B: The above exemptions are lifetime exemptions with a total lifetime limit of €85.430.

Contribution of 0,4% on property sales

This new tax is payable by the seller of the property, and it is imposed on the amount of the purchase price. It is calculated by the tax department and needs to be paid to enable the tax clearance and transfer of the property.

Cyprus Inheritance Tax

There is no Cyprus Inheritance Tax as it was abolished on the 1^st of January 2000.

Cyprus property lawyers in Limassol

We are leading Cyprus property lawyers in Limassol, but we offer services that cover all the other cities of Cyprus, including Nicosia, Paphos, Larnaka, Protaras, and Ayia Napa.

George K. Konstantinou Law Firm was ranked by Global Law Experts and awarded the title of Immigration and Real Estate Law Firm of 2019 in Cyprus.

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 local and international client with extra care and attention to personal/financial needs and demands.

We assist with opening private and corporate bank accounts and transferring funds to Cyprus while ensuring compliance with strict AML regulations. Additionally, we offer support in finding the best property developers and locations.

Property law FAQs

 

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