Buying Property in Cyprus: What You Need to Know Before You Commit
Purchasing a property is one of life's most significant financial decisions. Whether you are buying your primary residence, a holiday home, or making an investment, the process requires informed and careful planning to avoid legal complications or financial risk. In Cyprus, buyers must consider a range of legal and practical factors before proceeding.
Three Common Ways to Purchase Property
- Direct transfer of title deed
- Purchase through a Sale Contract (Sale Agreement)
- Assignment of an existing Sale Contract from a previous buyer
Each method comes with its own legal framework and risks. Early legal advice is crucial to choosing the safest route for your needs.
Key Considerations Before Proceeding
Legal Due Diligence and Selection
Ensure you are fully informed about the property's legal
status, zoning, permitted uses, and any public or private
restrictions. The more informed you are, the more secure your
decision will be.
Title Deed Verification
Ask the seller for the latest copy of the title deed. This
document confirms legal ownership and registration with the
Department of Lands and Surveys (DLS). If no title exists, further
legal and technical investigation is recommended.
Encumbrances and Legal Restrictions
You should verify:
- Whether the property is registered and legally belongs to the seller
- The exact registered area of the plot or unit
- Any existing mortgages, court memos, or judgments affecting the property
- Whether there are any court or administrative prohibitions on the sale (e.g. due to bankruptcy or liquidation)
- Whether the property has legal access and is not landlocked
- Whether there are any public rights of way, streams, or compulsory acquisition orders
- Any zoning or urban planning limitations or development schemes that may affect the property
VAT and Transfer Fees
Determine if Value Added Tax (VAT) applies to the transaction and
at what rate. You should also be informed of the transfer fees
payable to the DLS upon registration of the property in your
name.
Specific Issues Based on Property Type
If You Are Buying Land
- Check if the registered size matches the physical site
- Visit the land to confirm there are no trespasses or informal use by third parties
- Verify the building coefficients and allowable uses
If There Is a Building on the Property
- Confirm that a Certificate of Approval exists and whether it includes any annotations, conditions, or restrictions
- Verify whether the building complies with planning and building regulations
- Identify any outstanding obligations that could delay transfer or lead to future liabilities
If You Are Buying a Unit in a Development
- Confirm that all relevant permits (planning, building, deviation) have been issued and remain valid
- Investigate how the project has been divided, the number of unit holders, and whether a Distribution Agreement has been signed and filed with the DLS
- Clarify the allocation and exclusive use of common areas (parking spaces, corridors, balconies)
- Understand your percentage share in the common property
- Inquire about unused development rights and whether they have been allocated
- Assess the timeline for completion and issuance of title deeds and the consequences if the developer fails to meet agreed deadlines
Buying Through an Assignment of Sale Contract
If you are purchasing a property from someone who previously signed a Sale Contract with the original owner or developer, verify:
- That the original Sale Contract has been duly filed with the Land Registry
- That no outstanding amounts are owed to the original seller or developer
- That no burdens or encumbrances exist that could affect your rights as the new buyer
Do not pay the full purchase price until the property is properly transferred to your name.
Properties Under Construction
Units or plots in unfinished developments cannot be registered with the Land Registry until a Certificate of Completion is issued by the supervising engineer and final approval is granted by the relevant building authority. If the development is complete but no title deeds have been issued, request an explanation and assess whether there are legal or administrative delays.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
