Title Deeds in Cyprus

Cyprus title deeds are a series of legal documents which record land and property ownership. The Department of Lands and Surveys has a copy of the title deeds for every property. The title deeds prove ownership and show the history of ownership. They will also include information such as mortgages, long-term leases (over 15 years), charges, court decisions, etc.

Certificate of registration of immovable property in Cyprus

The certificate of immovable property registration (title deeds) is issued by application to the relevant District Office of the Department of Lands and Surveys, Ministry of the Interior, Cyprus.

Cyprus title deeds legislation

The rules on title deeds are contained in the following legislation:

• The Immovable Property (Tenure, Registration and Valuation) Law, Cap. 224.
• The Immovable Property (Transfer and Mortgage) Law, 9/65.
• The Sale of Immovable Property (Specific Performance) Law of 2011, Law 81(I) 2011.
• The Streets and Buildings Regulation Law (Amendment) of 2011.

Are Cyprus title deeds to be trusted?

The system of land registration in Cyprus was established by the British, and it is generally considered to be a success. All land is registered, so title deeds are an efficient way to show who owns the land and all the previous dealings and details concerning the land. The short answer, therefore, is yes.

However, the Department of Lands and Surveys recommends buyers do the following before buying a property:

• Ask for the title deeds. If there are no title deeds, find out why, and seek the advice of a professional, lawyer or real estate agent.
• Find out about payable VAT and transfer fees.
• If any building or structure is on the land, learn if the relevant permissions and certificates have been obtained.
• Once you decide to buy and pay, arrange for the transfer immediately. If, for any reason, payment cannot be made at once, sign a contract of sale and deposit it to the Land Registry (the relevant district office). This action ensures that the land is not sold to anyone else and protects you if, upon payment, the seller delays to transfer the property (see below). A buyer has six months to deposit the contract.

The Department of Lands and Surveys also highly recommends doing a search concerning the property. This is called due diligence and can be carried out by the buyer themselves or their real estate property lawyer. A search certificate can be obtained at the Department of Lands and Surveys district office for a EUR 10 fee for every plot of land. The search will show who owns the property, if it is mortgaged, and all other issues, problems and information relating to it.

How to obtain title deeds in Cyprus?

When buying a property in Cyprus, title deeds can be obtained straightforwardly.

The Department of Lands and Surveys has created an electronic platform for certain transactions. However, obtaining title deeds needs physical presence.

Cyprus title deeds procedure

• The buyer and seller must go to the District Land Office where the property is located. They can go in person, in which case they should carry ID documents or send their representatives, usually their lawyers, carrying a proxy (authorisation).
• If the buyer and/or seller is a company, the directors (or one authorised director) will go to the District Land Office.
• The buyer and seller must complete the transfer form (N. 270).
• The seller must fill out form N. 313 to confirm that all taxes and charges have been paid.

Under normal circumstances, the process takes one hour (there may be a queue, however). Title deeds will need a few working days to be issued.

Cost of title deeds in Cyprus

The cost of title deeds depends on the value of the property.

The rates are as follows:

• Value up to EUR 85,000; the transfer fees are 3%.
• Values between EUR 85,000-170,000; 5%.
• Over EUR 170,000; 8%.

No transfer fees apply if VAT has been paid.

VAT is paid for immovable property at the rate of 19%.

VAT Reduction

A reduced VAT of 5% applies for a property as follows:

• The property is the buyer’s principal or permanent residency in Cyprus.
• The area must be 200 sq m.
• For large families (minimum 4 children), there is an increase of 15 sq m for each child over three children. So, if there are four children, there is only an increase of 15 sq m.
• The planning permission for the property must have been submitted after 1 May 2004.

The House of Representatives passed new legislation on 8 June 2023 to diminish the area that qualifies for VAT reduction. The new criteria are that the 5% VAT will apply to 130 sq m of land for a residence worth up to EUR 350,000. To qualify, the whole transaction must not exceed EUR 475,000, and the area of the property must not exceed 190 sq m.

For people with disability, the reduced VAT of 5% will apply to 190 sq m of land.

This law has been published in the Cyprus Republic Official Gazette and takes effect on 16 June 2023. It amends the existing VAT law and has been given the number 42(I) of 2023. However, there is a grace period. The law does not cover permissions obtained on applications for reduced VAT submitted until 31 October 2023.

How do I transfer title deeds in Cyprus?

Cyprus title deeds are transferred with the simple procedure described in the previous section. The seller must pay all pending taxes concerning the property, completing form N. 313. Also, the seller and buyer must complete form N. 270 and pay the transfer fee. The buyer pays the transfer fee.

The importance of Cyprus title deeds for property

Title deeds are central documents and an important part of buying land. They prove the registration of the legal title and who owns the property.

Moreover, title deeds show the current state of the property and contain a description, registration number, encumbrances, mortgages, rights, and charges.

Buying without title deeds is possible, though it may contain dangers.

Common reasons why there are no title deeds are:

• The property is mortgaged.
• There are legal problems in relation to the property.
• The seller or developer has not fulfilled their tax obligations concerning the property.

To protect yourself, you should register the contract of sale at the Land Registry within 6 months of buying. If the seller refuses to transfer the title, you will repay the mortgage and get a court order against the seller for specific performance. This court order makes the seller transfer the property to you.

Title deeds for a brand-new property

After a new property has been constructed, the developer (or owner) will apply for the title deeds. The Cyprus title deeds procedure is as follows:

A certificate of final approval (CFA) needs to be obtained from the relevant authority. The relevant authority is usually the Municipality Town Planning Authority; if there is no municipality, the community council for the area or any other council appointed by the Council of Ministers to this effect, or, ultimately, the District Officer for the area.

The CFA verifies that:

• All building and planning permits were issued, and construction was completed in accordance with the permits.
• The building has not derogated from the information given to the authorities.
• The developer or owner has 21 days from completion to apply for a CFA.
• Once the developer or owner gets the CFA, they will apply to the Land Registry for the title deeds.
• Other necessary inspections may then be carried out.
• The Survey Department will visit the site to check boundaries and ensure that minimum distances between buildings have been kept.
• Official maps and plans are drawn and uploaded to the system.
• The title deeds are issued in the name of the developer or owner. Upon sale, the developer will transfer the title deeds to the buyer.

Important factors to know

Title deeds are necessary to buy or sell a property. Also, they are necessary for succession purposes when the owner passes away. Title deeds are useful for resolving disputes about the property.

If there are no title deeds, the buyer should proceed with caution. There are transactions (dealings) with land that are not very much affected by the absence of title deeds, for example, a short-term lease. Still, due diligence is highly recommended.

New legislation

There are proposals for new, stricter legislation in Cyprus for title deeds, but this has not yet been passed by the House of Representatives.

The Takeaway

Title deeds are legal documents that record ownership, mortgages, charges and other essential information concerning a property. In Cyprus, all land is registered. Title deeds are issued, and the Department of Lands and Surveys holds copies. The Department has an electronic platform; some transactions can be done online, but property transfers cannot. It is possible to buy property without the title deeds; in fact, legislation protects the buyer in such a case. However, if there are no title deeds, it is highly recommended not to proceed before taking a lawyer’s advice.

Frequently Asked Questions