Purchasing a Property in Cyprus

The first question is what the seller actually owns. A search at the Department of Lands and Surveys, dated within five days of the contract, establishes whether a separate title deed exists for the property, whether it is subject to a mortgage, memo or other encumbrance, and, in a multi-unit building, whether the specific unit is affected.

Where the property is under construction or no separate title has yet issued, the buyer's protection lies in the contract of sale itself, which must be deposited at the Land Registry within the statutory period under the Sale of Immovable Property (Specific Performance) Law. The deposit gives the buyer a right to specific performance and priority over later dealings by the seller, and without it the contract is merely a personal, contractual claim.

The planning permit and building permit must be examined; where the planning permit has not issued, deposit of the contract is possible only under a special procedure that a buyer should ordinarily avoid, and where the building permit has not issued or been applied for, the payment schedule should be made having this in mind.

The plans must identify the unit and any parking space by number. The identity and capacity of the person signing for the seller must be verified, with a board resolution where the seller is a company. A non-EU buyer requires a permit under the Acquisition of Immovable Property (Aliens) Law, Cap. 109, which is applied for after contract.

A transaction subject to VAT carries no transfer fees; a transaction outside VAT carries transfer fees. From 1 September 2026, whether a building is subject to VAT depends on its history of use rather than its age: the transfer is taxable where it takes place before first occupation, meaning the first systematic use of the building after completion, continued for at least 18 months. A building completed years ago but never occupied may therefore still carry VAT.

Building land is subject to VAT, subject to the exceptions in the relevant Tax Department's Circular, the most common being land on which a building erected pursuant to a permit exceeds 10% of the buildable area, land in an agricultural zone, and an individual's first sale (under certain conditions). Where the position is unclear, a written enquiry to the Tax Department before contract is the correct course. Where VAT applies, the seller must be VAT-registered and must issue a VAT invoice for each payment.

Even where a sale is subject to VAT, the Department of Lands and Surveys may value the property above the contract price and charge transfer fees on the difference. The two authorities sit under different ministries and do not bind one another.

New residential property carries VAT at 19%. An individual buying their first and primary residence may qualify for 5%, subject to limits on area and value that depend on the project's planning permission date. The conditions are set out in the firm's separate article on the reduced rate.

Where VAT does not apply, transfer fees are assessed by the Department of Lands and Surveys on market value at the date of transfer, in three bands, and, under certain conditions, reduced by 50%:

The bands apply per purchaser. Two spouses buying jointly are each assessed on a half-share from the lowest band upwards, which reduces the bill noticeably at higher values.

• New build at 19% VAT: €95,000 VAT, no transfer fees. Acquisition cost approximately €600,000 including other fees.
• Resale, single buyer: transfer fees of €33,200 before reduction (€2,550 + €4,250 + €26,400), reduced to €16,600. Acquisition cost approximately €521,600.
• Resale, bought jointly by spouses: €13,200 on each €250,000 half-share, €26,400 in total, reduced to €13,200. Acquisition cost approximately €518,200.

The spread between the first and last case is about €82,000 on the same price, which is why the VAT analysis and the ownership structure must be settled before the contract.

• A Land Registry search dated within 5 days of the contract confirming the property and, in a multi-unit building, the specific unit, is free of encumbrances, with a seller's representation to that effect.
• A written determination of whether VAT or transfer fees apply, including evidence of first occupation and duration of use, and whether the 5% rate is available to the buyer.
• Copies of the planning and building permits.
• Plans on which the unit and the rights with which it comes along (parking space, yard, storage unit etc) are numbered and highlighted, matching the contract.
• The identity and capacity of the signatory, with a board resolution where the seller and/or buyer are companies.

Andreas Georghadjis LLC has been at the centre of property transactions in Cyprus for many years. The firm has structured and negotiated some of the highest-value acquisitions and sales on the island in recent years, including the office headquarters of multinational groups, and it brings the same care to the purchase or sale of a family home. Whatever the scale of the transaction, the firm negotiates the terms with rigour and sees the matter through from the first offer to the transfer of title.

This article provides general information on the law in force at the date of publication and does not constitute legal or tax advice. Each case should be assessed on its own facts.