Comprehensive Guide to Acquiring Real Estate Property in Cyprus

Comprehensive Guide to Acquiring Real Estate Property in Cyprus

In recent years, Cyprus has become a hotspot for real estate investment, especially for individuals seeking a permanent residence permit through strategic property investments. The appeal lies in Cyprus’s warm climate, strategic location, favorable tax policies, and EU membership since 2004, making it an attractive destination for both living and investing. The strong legal system, akin to English common law, adds an extra layer of assurance.

When buying property in Cyprus, there are several key considerations that individuals should keep in mind to make informed decisions and mitigate risks. Here are some important factors to consider:

A. Due Diligence Stage

  1. Request Seller’s Documents:
  • In the initial phase, it is imperative to collect essential documents from the seller. For individuals, this includes a copy of the passport or national ID, and for legal entities, a complete set of recent corporate certificates and the Memorandum and Articles of Association.
  1. Property Documentation:
  • Obtain crucial property documentation such as the Certificate of Registration of Immovable Property (Title Deed) and an Immovable Property Search Certificate. The latter is pivotal in revealing any encumbrances, liens, charges, or obligations registered against the property.
  1. Additional Documentation for Houses/Apartments:
  • In the case of residential buildings, request documents confirming the issuance of building and planning permits, the certificate of final approval, and the latest architectural plans of the property.
  1. Mortgage Waiver:
  • If the property carries a mortgage due to a bank loan, secure a waiver from the relevant bank to release the property from the mortgage upon sale.
  • Land Suitability (for land purchases):For those considering land acquisition, ensure that the chosen land is suitable for the intended building purposes

 B. Know-Your-Customer (KYC) Procedures of Banks

  1. Communication with Seller’s Bank:
  • Proactively engage with the seller’s bank to inform them of the proposed property acquisition. This initiates the bank’s internal KYC and due diligence procedures.

C. Drafting of Sale Agreement and Payment of Stamp Duties

  1. Negotiate Sale Agreement:
  • Carefully negotiate the terms and conditions with the seller, covering aspects such as payment, transfer of title, possession of the property, and any specific conditions. The drafting of a detailed Sale Agreement is a critical step.
  1. Stamp Duty Payment:
  • After finalizing the Sale Agreement, ensure it is duly stamped by the Tax Department, and pay the applicable stamp duties to the Inland Revenue Department within 30 days of execution.

D. Deposit of Sale Agreement with Land Registry; Specific Performance

  1. Deposit of Sale Agreement:
  • Optionally, the purchaser can deposit a certified copy of the Sale Agreement with the Land Registry within six months of execution. This serves as a charge against the property for specific performance purposes.

E. Permit for Purchase of Property by the Council of Ministers

  1. Council of Ministers Approval:
  • For non-European Union citizens, obtain approval from the Council of Ministers post-execution of the Sale Agreement. This involves submitting an application with personal and financial information to the Local District Officer.

F. Transfer of the Property and Delivery of Possession

  1. Tax Clearance Certificate:
  • Prior to the transfer, the seller must obtain a Tax Clearance Certificate by settling any outstanding taxes and fees related to the property.
  1. Application for Transfer:
  • The seller initiates the transfer process by filing an application at the District Land Registry Office of the property’s location.
  1. Transfer Process:
  • Both the buyer and seller (or their authorized representatives) must be present at the District Land Registry Office to execute the necessary transfer documents.
  1. Transfer Fees Calculation:
  • The District Land Registry estimates the property’s market value and calculates transfer fees based on a tiered system.
  1. Transfer Fees Payment:
  • The buyer completes the payment of transfer fees and settles the remaining purchase price.
  1. Title Deed Issuance:
  • If all requirements are met, the Land Registry transfers the property’s ownership, and the Title Deed is typically issued within about one month.


Engaging the services of an experienced lawyer is strongly recommended throughout the entire process. This comprehensive guide covers the essential steps involved in acquiring real estate property in Cyprus, ensuring due diligence, legal compliance, and a successful transaction.

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