Cyprus property lawyers

At George K. Konstantinou Law Firm, our award-winning Cyprus property lawyers, led by Marios Konstantinou with over 13 years of specialised experience, offer expert legal assistance for your real estate needs.

Our firm, recognised as the "Immigration and Real Estate Law Firm of 2019 in Cyprus," has a proven history of successfully handling complex commercial and residential property matters, including purchases, sales, and disputes. We work so that your investments are secure and your rights receive complete protection.

Our legal services

George K. Konstantinou Law Firm offers transparent fee structures, including fixed-fee options for many standard property law services.

Property transactions and conveyancing

• Due diligence before property purchase.
• Drafting and reviewing property reservation and sale agreements.
• Providing legal advice on real estate procedures for expats.
• Power of attorney preparation for real estate transactions.
• Land Registry searches and registration.
• Real estate gift transfers between family members.
• Conveyancing for selling or purchasing homes.

Permissions to buy property in Cyprus and international clients

• Obtaining necessary permits for non-EU citizens to acquire Cypriot property.
• Online consultations and services for international clients.
• Obtaining permanent residency in Cyprus through real estate investment.
• Assistance with bank account opening and AML-compliant fund transfers.

Leases, management and property disputes

• Advice and preparation for leases and rental agreements.
• Guidance on property management, tenant disputes, and maintenance.
• Legal representation in property disputes.

Financial and corporate property services

• Advice on mortgages and home loans offered by Cypriot banks.
• Expert guidance on property-related taxes (VAT, capital gains, immovable property tax, stamp duty) to safeguard your financial interests.
• Reduced property VAT applications.
• Company formation in Cyprus for property management and tax optimisation.

Whether you need a Cyprus conveyancing lawyer for buying or selling a home, advice on property investment, or representation in a real estate dispute, contact George K. Konstantinou Law Firm for a complimentary, no-obligation consultation.

How much do property lawyers in Cyprus charge?

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

George K. Konstantinou Law Firm provides personalised and transparent fee quotes after understanding your unique needs. We believe in delivering exceptional value and comprehensive protection for your investment. Contact us to discuss your requirements.

Can foreigners buy property in Cyprus?

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. Our firm provides a smooth transaction process for EU buyers.

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. George K. Konstantinou Law Firm specialises in assisting non-EU citizens with this application process and managing submissions to the District Office. 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

Here are the steps included in our legal guidance for property buyers:

Step 1. Due diligence

After selecting a property to buy, it is imperative to appoint your property lawyer at George K. Konstantinou Law Firm, who will perform a thorough 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, our firm handles all procedures seamlessly via Power of Attorney. A Power of Attorney can be signed and certified in Cyprus or abroad at the Cyprus Embassy or Consulate, endorsed by a Notary Public, and bear the Apostille Stamp. The government's fee for certifying a Power of Attorney or verifying a notary's signature is €8.54.
• Upon signing the contract, our conveyancing lawyer applies to the 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.

If the property is subject to a mortgage, Types A or C documents are also needed, and our lawyer will guide you through the procedure.

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 the Contract of Sale in the Land Registry

• When contracts have been signed, our 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 our 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 title deed. Once the seller pays his taxes (if any), the tax department will issue a tax clearance form (N.313). Our lawyer can accompany you to the tax department to ensure that all documentation is in order.

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

Step 6. Transfer of the 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 our property lawyer needs to submit to the Land Registry the following documents:

• Land Registry forms
• Tax Clearance
• Confirmation from a 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 must 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

When planning real estate transactions, it is important for our clients to understand Cyprus property taxes and related budgeting matters. Our property lawyers provide clear explanations and strategic advice to help you navigate these obligations.

Key taxes include stamp duty, transfer fees, VAT and capital gains tax.

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 Cyprus real estate projects.

Resale properties are exempt from VAT.

The reduced VAT rate of 5%

Any person buying their first permanent residence in Cyprus can apply for a reduced VAT rate of 5%.

The reduced rate of 5% VAT applies to the first 130 m2 (190 m2 for individuals with disabilities). In contrast, the standard VAT rate is imposed on the remaining square meters, which are 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 disposing of or selling property in Cyprus, including gains from the disposal of shares in companies that directly own immovable property.

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.

We assist clients in accurately calculating potential Capital Gains Tax, and make sure that all eligible exemptions and deductions are applied.

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 tax clearance and transfer of the property.

Our team will ensure this is correctly accounted for in the transaction.

Cyprus Inheritance Tax

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

Hire a trusted Cyprus property lawyer 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, Larnaca, 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 with 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.

FAQs

 

Ready to proceed with your Cyprus property transaction or need expert legal advice? Contact experienced real estate lawyers at George K. Konstantinou Law Firm today. Schedule your free, no-obligation consultation via our office, an online appointment, or a direct call. Allow us to offer the professional guidance and protection you deserve.