BUYING GUIDE
CYPRUS
BUYING GUIDE TO CYPRUS BUYING GUIDE TO CYPRUS
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CYPRUS ALLURE
CYPRUS is a Mediterranean island with 320 days of sunshine a
year and some of the cleanest bathing waters in Europe.
Cyprus, a member of the European Union and the Eurozone, offers an
alluring combination of high quality of life and a low cost of doing business.
International buyers account for over 40% of all real estate transactions* in
Cyprus.
Thanks to the recent discovery of hydrocarbons in its Exclusive Economic
Zone, Cyprus now has the prospect of becoming an energy hub in the Eastern
Mediterranean. In recent years, Cyprus has attracted worldwide interest and
signicant investment from leading energy giants, as well as other providers
in the oil and gas industry. This industry has and will continue to grow, with
companies setting up and expanding operations in Cyprus, relocating key
management, and attracting highly qualied personnel, thus increasing the
demand for quality real estate.
Local regions include vibrant and cosmopolitan Limassol, charming and
archeology-rich Paphos, historic and transportation hub Larnaca, bustling and
cultural Nicosia, as well as touristic and luxurious Famagusta. Irrespective of
where you choose to invest or buy your next home, the modern infrastructure
network makes travel within or beyond Cyprus fast and efcient.
The legal system is heavily inuenced by English Common Law, which
makes acquiring property in Cyprus a straightforward process. Moreover, the
Cypriot government has established incentives to encourage international
investments.
*Land Registry Data 2019
WHY BUY IN CYPRUS?
BUYING GUIDE TO CYPRUS
CITIES IN CYPRUS
NICOSIA
The capital, with its impressive 16th century Venetian walls and moat, is the administrative, nancial, religious, and
higher education hub of the island. Therefore, it often attracts investment-focused real estate buyers. Cosmopolitan
and bustling, Nicosia inconspicuously blends the modern with the traditional. Art, culture, leisure and nightlife options
are a mixture of the popular and the exclusive, with trendy bars hidden away in the revitalised and historic old city.
Nevertheless, a beach or mountain escape is always less than an hour’s drive away from the island’s only non-coastal
city.
LIMASSOL
Dynamic, energetic and cosmopolitan, Limassol is a thriving centre for international business and the hub of the
country’s shipping industry. Luxurious high-rise developments now adorn its coastline and have been drawing in
business executives and high-end property buyers alike. The city is home to the Limassol Marina, a €350 million
waterfront development, and City of Dreams Mediterranean, Cyprus’ rst integrated casino resort - the only one of its
kind in Europe - which is expected, once open, to attract an additional 300,000 tourists annually.
LARNACA
With a history dating back 4,000 years, Larnaca is
compact, easily accessible and truly authentic. It
is the obvious choice for those seeking affordable
real estate on the Mediterranean coast. The city is a
convenient base for many international businesses
as it is home to the island’s main international airport,
has a port, as well as fast access to all other regions
of Cyprus through an excellent highway network.
Larnaca has a palm-lined promenade, stretches of
sandy beaches hosting leisure and sporting facilities,
whereas the famous dive wreck Zenobia, ranks as
one of the top 10 wreck dives in the world.
PAPHOS
Named as Europe’s 2017 Culture Capital by
the European Commission, Paphos has a well-
established expat community and is a popular
retirement destination for internationals. Paphos
International Airport provides excellent connections
and affordable ights for all those seeking to
enjoy the city’s archeological sites, spectacular
mountainous countryside, world-class golf courses,
and hillside villages overlooking the crystal waters
of the sea. Nature-lovers also ock to the Akamas
National Park for breathtaking views, wide sandy
beaches, and gorge walking. Deservedly, Paphos
attracts the lion’s share of interest by foreigners
buying real estate in Cyprus.
FAMAGUSTA
Famagusta’s Ayia Napa and Protaras are the
island’s most popular holiday resorts, attracting
visitors and second home buyers from the
world over. There are 25 Blue Flag beaches on
Famagusta’s coast. A couple of the beaches
proudly feature in Tripadvisor Travellers' choice
top 25 beaches of Europe and the World in 2020.
The breathtaking Cape Greco, a nature reserve
peninsula, has numerous walking and cycling
trails across limestone cliffs, rock formations
and sea caves. Famagusta is set to be the home
of Paralimni Marina, a world-class residential
development furnished by Armani / Casa with a
new 300-berth marina, that will transform the region
become a destination for luxury and adrenaline-
seeking boat lovers.
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BUYING GUIDE TO CYPRUS
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BUYING GUIDE TO CYPRUS
HIGH-RISE TOWERS
Cyprus’ cities are soaring upwards
to provide world-class, high-end
living, in every sense. Shimmering
beachfront towers designed by
world-leading architects are fast
becoming prestigious residential
landmarks. Mostly set on the
shoreline, these towers provide
ultra-luxury indoor and outdoor
living spaces, magnicent interiors,
lavish private swimming pools,
superb rooftop terraces, and
bustling inner plazas. For your
peace of mind, these apartments
come complete with a property
management proposal so you can
enjoy the breathtaking views and
the exclusive amenities on offer.
MARINAS
Modern, high-end apartments
and luxurious villas to enjoy sea-
view vistas and the full benets
of marina living. The marinas are
generally positioned on beach-side
locations or close to the crystal
clear waters of blue-ag beaches
offering a blend of speciality
shops, marine sector retail, bars,
premium restaurants, spas, tness
centres, and water activities.
Yachters with a discerning taste
for class and elegance, and their
friends, will enjoy the fully serviced
marina facilities (shore power, fuel,
dry stack storage), some even
complete with a port of entry into
Cyprus.
SEAFRONT VILLAS
Seafront villas are the most sought-
after properties on the coast of
Cyprus as they are a popular choice
for investment, holiday homes or
primary residence. Beachfront
villas generally provide a high return
on investment, a reliable income
stream, and access to a delightful
beachside hotspot. Investors
purchase seafront villas that can be
rented during Cyprus’ long holiday
season, stretching from April to
November, to visitors craving
Europe’s cleanest bathing waters,
sunshine, space and privacy with
unpretentious luxury.
BRANDED RESIDENCES
Branded residences are becoming popular
on the Cypriot coast. Offering breathtaking
views of the Mediterranean Sea, a handful
of mixed developments are taking shape.
Branded residences will benet from all the
hotel’s amenities and services: lounges, gyms,
swimming pools, kid’s playground, and lush
gardens. Residents can welcome their guests
around a barbecue while soaking in sea views.
Residence owners will have the privilege to enjoy
à la carte services including housekeeping, room
service, laundry services, concierge and other
personalised services.
GOLF COURSE RESORTS
Golf on a championship course, a stone’s throw
from the Mediterranean Sea, where the fairway is
an extension of your villa’s front garden. Cyprus
has produced high-end developments with
world-class, 18-hole golf courses often with
panoramic sea-views. Villas and apartments
on golf courses are a fantastic lifestyle choice
designed for those looking for nature, style,
and quality combined. Golf developments offer
top quality properties, an exciting food scene,
enjoyable social events, the latest golf apparel
and luxurious spas, after a rewarding day ofteeing
off.
BOUTIQUE DEVELOPMENTS
Cyprus offers a premium selection of individually
designed villas and boutique style residences
to suit all budgets and meet any specications.
The options are endless: striking and spacious
interiors, heated innity swimming pools,
panoramic roof terraces, landscaped gardens,
5-star communal services, a friendly and laid-
back resort, private underground car parking,
intelligent villas with remotely controlled
appliances. Enjoy it yourself or rent it out to
visitors ocking to Cyprus for dazzling blue-ag
beaches, ne dining, shopping, and incredible
snorkelling spots that are just waiting to be
explored.
RESIDENTIAL PROPERTY TYPES
HIGH-RISE TOWERS
MARINAS
SEAFRONT DEVELOPMENTS
BRANDED RESIDENCES
GOLF COURSE RESORTS
BOUTIQUE DEVELOPMENTS
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Computer generated image of Paralimni Marina
BUYING REAL ESTATE IN CYPRUS
STEP-BY-STEP PROCESS
01_
PROPERTY RESERVATION
The buyer makes an offer to purchase a
property at a specific price. The buyer pays
a non-refundable reservation fee and the
vendor takes the property off the market for
an agreed period of time.
02_LAWYER APPOINTMENT
Although not legally mandatory, it is highly
recommended to appoint an independent
lawyer.
03_CONVEYANCING / DUE DILIGENCE
Your lawyer will perform the necessary
checks to confirm ownership and verify the
existence of a freely transferable title.
04_CONTRACT NEGOTIATION AND
EXECUTION
Your lawyer will review (or draft) contracts
of sale, help with negotiations and ensure
the contract is duly executed.
05_APPLICATION FOR A REDUCED VAT
RATE
A standard VAT rate of 19% applies to new
build properties and development land
(Second hand properties are exempt of
VAT).You are eligible to apply for a reduced
VAT rate of 5% for a primary residence,
subject to terms and conditions.
06_REGISTRATION OF THE CONTRACT
OF SALE (CoS) AT THE LAND REGISTRY
OFFICE (LRO)
Registration provides the buyer maximum
protection under the law. After this step,
buyers may resell their property, even prior
to separate title deed issuance.
07_APPLICATION FOR PERMISSION TO
ACQUIRE IMMOVABLE PROPERTY IN
CYPRUS
Applies only to non-EU citizens and must be
done only prior to the title deed transfer.
08_TRANSFER OF TITLE DEEDS
Once separate title deeds are ready, the
buyer and seller present themselves at
the Land Registry office to complete the
transfer. If applicable, the buyer pays
transfer fees.
BUYING GUIDE TO CYPRUSBUYING GUIDE TO CYPRUS
1_PROPERTY RESERVATION
The reservation fee depends
on the purchase price and
typically ranges between
€5,000 and €10,000. Your
sales agent or lawyer holds
the reservation amount until
the contract of sale is signed.
The reservation fee takes the
property off the market and
fixes the sale price. If the sale
proceeds, the reservation
fee is applied towards the
purchase price.
2_LAWYER APPOINTMENT
Legal services could
comprise due diligence, CoS
review and/or preparation,
contract negotiation, contract
exchange/completion,
registration of the CoS at
the LRO, Representation at
the LRO for the title transfer,
Application to the Tax
Authorities for reduced VAT,
and application for permission
to buy immovable property in
Cyprus. For the due diligence
and conveyancing (from
contract review to contract
execution) legal fees are
typically approximately 1% of
the purchase price (minimum
and maximum fees may
apply).
3_CONVEYANCING / DUE
DILIGENCE
It is highly recommended that
due diligence is completed
prior to contract signing.
Your lawyer will conduct a
search at the LRO to establish
that the seller is the rightful
owner of the property and
whether the title has any legal
encumbrances that could
potentially inhibit a sale. If the
property is a piece of land the
lawyer could search and verify
the applicable zone, building
capacity and allowable
building density. For properties
that do not yet have separate
title deeds, your lawyer can
check with the relevant
authorities to verify that
the necessary planning and
building permits exist. Where
the vendor is a company,
your lawyer can complete
the requisite search at the
Registrar of Companies.
4_CONTRACT NEGOTIATION
AND SIGNING
A CoS is a private agreement
between you and the seller.
The seller will typically provide
the CoS for you (and your
lawyer) to review. Occasionally
the buyer’s lawyer may need
to draft the CoS. CoS are in
English. Where necessary, your
lawyer could arrange for a
translation.
Stamp duty: Within 30 days
of contract signing, the buyer
must pay stamp duty on the
contract value as follows
A maximum stamp duty of
€20,000 applies.
5_APPLICATION FOR A
REDUCED VAT RATE
In accordance and in
compliance with EU law, all
new properties are subject
to a standard VAT rate of
19%. However, a reduced
VAT rate of 5% applies for
the acquisition of a primary
residence subject to certain
terms and conditions:
• Only physical persons aged
18 or older are eligible to
apply
• The property must be used
as the primary and
permanent residence for the
next 10 years
• The reduced VAT rate has not
been previously used by the
same person
• The reduced VAT rate applies
only on the first 200 sqm.
The standard rate applies on
the remaining sqm.
6_REGISTRATION OF THE
CONTRACT OF SALE AT THE
LAND REGISTRY OFFICE (LRO)
Once contracts are fully
executed and duly stamped,
and provided the purchaser
pays the first installment
(normally 30%-40% of the
purchase price), the contract
of sale can be lodged at LRO
for ‘specific performance’
(within six months of signing).
At this stage the LRO is
essentially notified of the
buyer’s details. Law’ protects
the buyer by preventing the
The ‘Sale of Immovable
Property (Specific
Performance)
Law’ protects the buyer by
preventing the vendor from
reselling or transferring the
property elsewhere and from
otherwise encumbering the
property, for as long as the
contract of sale is valid and
legally effective. Upon this
registration the buyer may
resell his property, even
prior to separate title deed
issuance.
7_Permission to acquire
immovable property in Cyprus
Cypriots and EU citizens are
entitled to buy immovable
property without any
restrictions. Non-EU citizens
can buy immovable property,
however, permission from
the Council of Ministers is
required. This is primarily
a matter of process; the
application is submitted along
with the signed CoS and
approval is typically granted
within a month.
The Council of Ministers’
approval is not a pre-condition
to taking possession of the
property.
8_TRANSFER OF TITLE DEEDS
The process to issue separate
title deeds for each unit
in a development typically
takes a few years after the
development is completed. A
title deed transfer is effected
at the Land Registry Office
provided that the buyer has
paid all outstanding balances
to the seller, pays any
applicable transfer fees and
taxes to the government and
has the necessary permit from
the Council of Ministers, if
applicable.
It is a simple procedure and
lawyers can act on buyers’
behalf, pursuant to a Power of
Attorney.
Fees are calculated on the
sale price accepted by the
Department of Land and
Surveys as follows:
Transfer fees apply to the
property value per buyer
hence total transfer fees on a
transaction can be reduced if
a property is bought on joint
names. Currently a reduction
of 50% applies to the above
rates and properties subject
to VAT are completely exempt
from transfer fees.
WITH THANKS TO…
The information in this guide on conveyancing and taxes has been written with the help of
Adamos Hadjichristodoulou & Co. L.L.C.
To contact Adamos Hadjichristodoulou & Co. L.L.C. please get in touch with:
Adamos Hadjichristodoulou & Co. L.L.C.
ADVOCATES – LEGAL CONSULTANTS
+357 23811630
info@ahlaw.com.cy
PLEASE NOTE: This document should be used only as an introductory guide to the taxes
and fees relating to Cypriot real estate. It does not in any way constitute legal or tax
advice.
Contract
Value
The first
€5,000
€5,001 –
€170,000
Over €170,000
Rate
0.00%
0.15%
0.20%
Property
Value
First
€85,000
€85,001 –
€170,000
Over
€170,000
Rate
3%
5%
8%
Fee
€2,550
€4,250
Cumulative
Fee
€2,550
€6,800
BUYING REAL ESTATE IN CYPRUS
THE PROCESS IN DETAIL
Purchasing property in Cyprus is a straightforward process
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IMMOVABLE PROPERTY TAX
No immovable property tax; abolished in 2017.
MUNICIPALITY TAX
Calculated on the property value per the latest government valuation.
Rates are set by the municipality and are typically between
1‰ and 2‰ p.a.
SEWERAGE TAX
Calculated on the property value per the latest government valuation. Rates are
set by the local sewerage board and are typically between 0.5‰ and 3‰ p.a.
REFUSE COLLECTION FEE
Municipalities/local authorities charge a per annum fee for regular refuse
collection. The fee depends on the size of the property and the municipality.
For example, for a 3-bed holiday house in Protaras, Famagusta the refuse
collection fee is c.€140 p.a.
CAPITAL GAINS TAX
A capital gains tax of 20% is imposed on the profit gained from the property
disposal.
SALES LEVY
A sales levy of 0.4% is imposed on the sale price and is payable by the seller. The
proceeds from this levy will go towards the Central Agency for Equal Distribution
of Burdens.
INHERITANCE TAX
No inheritance tax; abolished in 2001.
PROPERTY TAXES AND FEES
EuropeProtaras CyprusElite Pearl Residences
Computer generated image of Paralimni Marina
