Key Legal Considerations for Investing in Cyprus Real Estate in 2025
Cyprus remains popular with homebuyers and investors, yet the paperwork can feel opaque if you do not know the sequence. This guide sets out each step in plain English, with the key checks, forms and fees you will meet along the way. It is written for general readers exploring Cyprus real estate and wanting a reliable path from offer to title.
Step 1: Plan your budget with the correct taxes and fees
Decide early whether you are buying a new home or a resale, because the charge you pay differs. New homes usually attract 19% VAT, although a reduced 5% rate can apply to a buyer’s primary residence on the first 130 m², subject to value and size limits that were updated in 2023 and remain in force in 2025. Any area above the threshold is charged at 19%.
If you buy a CY real estate on resale, VAT is not payable and you will instead face Property Transfer Fees on Land Registry value at 3%, 5% and 8%, with exemptions where VAT applied at purchase. Stamp duty on the sale contract is due within 30 days and is calculated at 0% to €5,000, 0.15% from €5,001 to €170,000, and 0.2% above that, capped at €20,000.
Step 2: Appoint a licensed agent and an independent lawyer
Work only with licensed intermediaries. Registered Cyprus real estate agents are supervised by the Real Estate Agents Registration Council under Law 71(I)/2010; ask for the licence number and verify it. Keep your lawyer independent from the seller or developer to avoid conflicts of interest.
Step 3: Order official title searches before committing
Ask your lawyer to obtain a Land Search Certificate from the Department of Lands and Surveys. This official search reveals mortgages, liens, memos and other encumbrances over the property. You can apply via the government portal or at a District Lands Office. If you are a frequent buyer, note there are related searches for contracts already filed in a purchaser’s name.
Step 4: Check planning and building compliance
For new or recently built homes, confirm planning permission, the building permit and, where applicable, final approval, as these affect the ability to issue and transfer separate title. Many reputable firms and sales packs now include copies of permits at heads of terms, yet treat them as a starting point and have your lawyer verify them with the authorities.
Step 5: Sign, stamp and deposit the Sale Agreement on time
After terms are agreed, sign a clear Sale Agreement, then stamp it with the Tax Department and deposit it at the District Land Registry within six months. Timely deposit activates the “Specific Performance” regime, which protects the buyer by preventing the seller from re-selling or re-mortgaging the same asset. The Department of Lands and Surveys stresses the six-month deadline; late deposit can lead to extra transfer fees and weaker protections.
Step 6: If you are a non-EU/EEA buyer, apply for the acquisition permit
According to a Cyprus real estate agency, Non-EU/EEA nationals must obtain a permit under the Immovable Property Acquisition (Aliens) Law, Cap. 109. The application is made to the District Officer using Form Comm.145 and is submitted with supporting documents once the contract is signed. The form and guidance are published by the authorities. Build the processing time into your completion plan.
Step 7: Prepare your AML/KYC documents in advance
Cyprus professionals are obliged to carry out anti-money-laundering checks. Expect to provide proof of identity, address, and clear source-of-funds. Having this ready at the offer stage keeps matters moving, particularly when banks or developers request enhanced due diligence on larger deals.
Step 8: Confirm your rental strategy and follow the rules
If you intend to rent long-term, check whether the unit falls within the Rent Control Law. For eligible properties, the Council of Ministers has set a maximum rent increase of 6% for the period from 22 April 2025 to 21 April 2027. Newer buildings often sit outside this regime and rely on contract terms.
If you plan short-term lets, register with the Deputy Ministry of Tourism and display the registration number on all listings. The government portal explains the registration method and conditions, including the obligation to show the number publicly.
Step 9: Secure an Energy Performance Certificate
When selling or renting, an Energy Performance Certificate is required. The Energy Service explains what the EPC covers, how it is graded and its role when marketing a property. Keep a valid certificate to hand before you complete a sale or publish a rental advert.
Step 10: Arrange completion funds and encumbrance releases
Your lawyer should coordinate bank drafts or transfers, collect any required waiver from a mortgagee bank and ensure encumbrances are released on the day of transfer. Where VAT applied to the purchase, transfer fees are typically not charged; otherwise, the progressive bands apply based on Land Registry market value at the date of transfer.
Step 11: Transfer title at the Land Registry and keep records
On the completion date, attend the Land Registry, settle any transfer fees and have title transferred into your name. Keep certified copies of the stamped and deposited contract, receipts for taxes and the deed registration. These records will matter later, especially if you refinance or exit your Cyprus property investment.
Step 12: Post-completion housekeeping
Switch utilities, insure the property and register with your municipality for local charges. If you rent, maintain your short-let registration or follow the rent-control rules for increases, as applicable. This is also the moment to review wills and succession planning with your lawyer if the property will form part of a wider Cyprus real estate investment strategy.
Buying in Cyprus is perfectly manageable if you follow the order above and keep to the deadlines. When each step is documented, costed and filed correctly, the process is straightforward and well suited to careful buyers who value clarity in Cyprus real estate agents’ dealings and in government procedure.
