Cyprus (CY)
Cyprus is a Mediterranean island nation and EU member state situated at the crossroads of Europe, Asia and Africa.
Buying Property in Cyprus
The full buying process, transaction costs, mortgage, and legal requirements.
Cyprus has a mature property market popular with foreign buyers, particularly from the UK, Russia, Israel, Lebanon, and China. The market has a well-documented historic problem with title deeds (τίτλοι ιδιοκτησίας) not being issued to buyers, leaving many with properties they cannot legally transfer or mortgage. The government has legislated to resolve old cases. Always use a Cyprus-qualified independent lawyer for any property purchase.
Rent vs. Buy
Renting makes sense for the first 1–2 years while you understand the area and market. Buying makes sense if you plan to stay 5+ years, want stability, or are looking for investment (rental yields of 4–6% are achievable). Property purchase transaction costs (7–10%) make short-term buying expensive. Non-EU buyers face no legal restrictions on buying property in the Republic of Cyprus.
Buying Process — Step by Step
Agree price and terms with seller/developer
1–4 weeksNegotiate price directly or through a licensed estate agent (REAC-registered). Get a preliminary sale agreement or reservation form.
Appoint an independent Cypriot lawyer
1–2 weeksEngage a Cyprus Bar Association-registered lawyer who is independent of the seller and agent. They will conduct due diligence including title deed check, land registry search, and building permit verification.
Conduct due diligence
2–4 weeksLawyer searches: Department of Lands and Surveys for title status, mortgages, encumbrances. District Administration for building permits. Court for any pending litigation.
Sign the Contract of Sale
Can be done relatively quickly once due diligence completeSign a formal Contract of Sale specifying price, completion date, and conditions. Pay deposit (typically 10–20%).
Register Contract at Land Registry
Within 60 days of signingYour lawyer deposits the signed contract at the Department of Lands and Surveys within 60 days. This protects your rights as purchaser (specific performance protection). CRITICAL step — do not skip.
Secure financing (if applicable)
4–8 weeksApply for a Cyprus mortgage from Bank of Cyprus, Hellenic Bank or other lenders. Foreign buyers can obtain mortgages up to 60–70% LTV.
Complete purchase and pay remaining balance
Per contract termsPay remaining purchase price. Receive keys.
Transfer title deed and pay transfer tax
1–6 weeksYour lawyer lodges the title transfer at the Department of Lands and Surveys. Pay Transfer Tax (Φόρος Μεταβίβασης) and any other outstanding fees.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Transfer Tax (Φόρος Μεταβίβασης) | 3% (up to €85,000) + 5% (€85,001–170,000) + 8% (above €170,000). Calculated on the assessed value. | Halved for newly built properties. Exempt for properties with VAT applied (see below). |
| VAT on New Build (First Sale) | 19% on purchase price (first sale from developer) | Reduced 5% VAT applies for primary residence buyers on first 130 sq m (subject to conditions). This exempts from Transfer Tax. |
| Stamp Duty | Abolished from 1 January 2026 | Stamp duty is fully exempt for contracts of sale signed on or after 1 January 2026. Contracts signed on or before 31 December 2025 still attract the old rate (€1.50 per €1,000 up to €170,860; €2 per €1,000 above). |
| Land Registry Registration Fee | €50–200 | For depositing the contract and title transfer. |
| Legal Fees | 1–2% of purchase price (typically €1,500–5,000+) | Negotiated with lawyer. Critical investment — do not skimp. |
| Estate Agent Commission | 3–5% of purchase price + VAT | Typically paid by seller but may be shared. Always clarify upfront. |
| Survey / Structural Report | €300–800 | Not legally required but strongly recommended for resale properties. |
The Notary — Mandatory for All Purchases
There are no notaries for property conveyancing in Cyprus — unlike mainland Europe. The Department of Lands and Surveys handles all title deed registration and transfers. Your lawyer performs the conveyancing role.
Mortgage
Cyprus mortgage market is dominated by Bank of Cyprus and Hellenic Bank. Rates have risen in line with ECB base rate increases. Variable and fixed rates available.
30–40% for foreign buyers. 20–25% for Cyprus residents with strong credit history.
Non-EU buyers can borrow in Cyprus but typically need 30–40% deposit and strong income documentation. All loans are in EUR. Non-EU buyers need CRMD approval in theory but this is a formality for EU property rights.
Land Registry
Department of Lands and Surveys (Τμήμα Κτηματολογίου και Χωρομετρίας). They register all property titles, mortgages, charges and transfers. Online search available at landregistry.moi.gov.cy for basic title information. Always do a full search through your lawyer.
Taxes
Property transfer tax applies on secondary market sales (see costs above). New builds from developers typically have VAT instead. Annual Immovable Property Tax (ΦΑΚ) was abolished in 2017. Local municipality levies annual fees for rubbish collection (€80–200/year). Capital gains tax: 20% on the gain from sale of Cyprus property (subject to exemptions for primary residence — up to €17,086 lifetime exemption; increased exemptions for long-term ownership).
New Build vs. Existing Property
New builds: VAT at 19% (or 5% for primary residence first 130 sq m), modern facilities, often in gated developments. Title deed issues less common with modern developers post-2010 laws. Existing/resale: Transfer tax instead of VAT. Check title deed status very carefully. Older properties may have energy efficiency or structural issues — always survey.
Selling Property
Capital gains tax (CGT): 20% on the gain net of allowable deductions. Exemptions: primary residence (up to €17,086 lifetime CGT exemption, extended to €85,430 in some cases of agricultural land), property inherited via estate. Use a lawyer and accountant for sale as tax treatment is complex.
Useful Links
Property Buying
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