Enforcement Of Judgments Cyprus Chapter – Global Legal Post

1. What are the applicable legal frameworks relating to the recognition and enforcement of foreign court judgments?

The law in Cyprus on the recognition and enforcement of foreign judgments provides for various legal frameworks, the applicability of which depends on the originating country in which the judgment was issued. The main legal frameworks for the recognition and enforcement of foreign judgments in Cyprus are the following:

• Judgments from EU Member States. The provisions of Regulation 1215/2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast) which replaced the previous Regulation 44/2001, provide for a simplified process for a party who wishes to invoke in a Member State a judgment issued in another Member State. A judgment is recognised and enforceable without any special procedure, and is effected by producing a copy of the judgment, a standard certificate issued by the court of origin and a translation of the judgment if needed, to any registrar of any Cyprus district court. Upon its registration and recognition, the judgment has the same enforceability as a Cyprus court judgment.
• Judgments from countries sharing a unilateral or bilateral treaty with Cyprus. The Foreign Court Judgments (Recognition, Registration and Enforcement based on Convention) Law of 2000 (Law 121(I)/2000) provides the legal framework for the recognition and enforcement of any foreign judgment of a country with which Cyprus has entered into a bilateral or unilateral treaty, for the mutual recognition and enforcement of judgments. The statute provides for the filing of an application by summons, supported by an affidavit, requesting a declaratory judgment for the recognition and/ or enforcement of the foreign judgment. The application is served upon the judgment debtor, who has the opportunity to oppose the application by filing a written objection accompanied by an affidavit; although the grounds of objection are quite limited and confined to the conditions laid down in the applicable treaty.
• Judgments from Commonwealth Members. The Foreign Judgments (Reciprocal Enforcement) Law of 1935 (Cap.10) governs the recognition and enforcement of judgments obtained in the United Kingdom, UK dominions, protectorates and mandated territories, as well as other countries that accord reciprocal treatment to judgments given in the Republic of Cyprus. The process starts with the filing of an ex parte application requesting the recognition of the foreign judgment. Upon the satisfaction of the court that the foreign judgment should be recognised in Cyprus, an order is issued to that effect. The court order provides for a specific period of time within which the judgment debtor may be allowed to file an application to set aside the order, and during this period the judgment cannot be enforced.
• The Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters (2 July 2019) (hereinafter the “Hague Convention”). The European Union acceded to the Hague Convention through the Council Decision (EU) 2022/1206 of 12 July 2022 concerning the accession of the European Union to the Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters. The European Union’s accession to the Convention created an interconnection in the process for the recognition and enforcement of foreign judgments between the European Union along with its Member States, with non-Member States of the EU that have ratified the Convention, enabling the use of a simplified framework such as the one provided by Regulation 1215/2012 with non-EU Members that have ratified the Convention. Non-Members of the EU that ratified the Convention include Ukraine, Uruguay and recently, the United Kingdom (in force from 1 July 2025 and applicable for judgments issued in proceedings commenced after 1 July 2025). 
• Common law action. This route of enforcement is available when no other route of enforcement applies. The process essentially involves the initiation of a fresh action before the Cypriot courts requesting relief identical to the relief provided for by the foreign judgment based on the existence of the judgment. The existence of the foreign judgment provides for the possibility to apply for a summary judgment on the ground that the defendant has no defence to the claim, in order to fast-track the process. Although it must be noted that such process is only available for monetary judgments.

What are the main international treaties or conventions that apply?

The main convention that applies to the Republic of Cyprus is the Hague Convention which the European Union acceded through Council Decision (EU) 2022/1206 of 12 July 2022. Other significant bilateral treaties ratified by the Republic of Cyprus in relation to the recognition and enforcement of foreign judgments are with the Russian Federation (Treaty ratified by Law 172/1986), the State of Qatar (Treaty ratified by Law 16(III)/2019) and Ukraine (Treaty ratified by Law 8(III)/2005).

What legal principles apply if there is no applicable international treaty or convention?

If no international treaty or convention is applicable, then Law 121(I)/2000 consequently does not apply, and the following venues for the recognition and enforcement of the foreign judgment are available depending on the country of origin:

• under Regulation 1215/2012 for a judgment of a court of an EU Member State;
• under the Foreign Judgments (Reciprocal Enforcement) Law of 1935 (Cap.10) for a judgment of a Commonwealth Member (e.g. the United Kingdom, British Virgin Islands, etc.); and
• the only route of enforcement available for judgments issued by a court of a country outside the European Union with which Cyprus has not signed an international treaty, or is part of a convention, and which do not fall under Cap.10, is the common law action.

2. What are the principal requirements for a judgment to be recognised and enforced and what are the key defences?

Law 121(I)/2000 provides that one of the grounds on which an objection may be raised concerns the jurisdiction of the foreign court that rendered the judgment (Article 5(1)(e)). Similarly, Cap.10 provides that the registration may be set aside if the foreign court lacked jurisdiction in the circumstances of the case to issue the judgment (Article 6(1)(a)(ii)).

Cap.10 provides that the registration may be set aside if the judgment debtor in the original proceedings before the foreign court (irrespective of the fact that they may have been duly served in accordance with the law of the country of the original court) has not received sufficient notice of such proceedings so as to enable them to defend themselves in the proceedings and did not appear (Article 6(1)(a)(iii)). Similarly, the issuance of a judgment in default or the failure to serve the defendant with the document instituting the proceedings constitutes a ground to challenge the registration or enforcement of the judgment under EU Regulation 1215/12 (Article 45(1)(b)).

Article 4(1) of Cap.10 provides that a judgment creditor may apply at any time within six years from the date of the judgment, or, where there has been an appeal against the judgment, within six years from the date of the final judgment issued in the course of that appeal, to have the judgment registered. Other requirements are that the judgment has not been fully satisfied, or that it could not have been enforced through execution in the country of the court that rendered the judgment (Article 4(1) of Cap.10).

In a common law action for the registration of a judgment issued by a court of a country outside the EU, with which Cyprus has not entered into an international treaty, it appears that the defendant must be resident within the jurisdiction of Cyprus. However, this position has been expressed only obiter (see VTB Bank (Open Joint-Stock Company) ν. Taruta Sergey Alekseyevich, General Application: 378/14, 12/06/20) and does not constitute a binding precedent on the Cypriot courts.

Other defences that may be raised, as provided under Article 6 of Cap.10, include that the judgment was obtained by fraud, that its enforcement would be contrary to public policy in the country of registration, that the rights under the judgment do not vest in the person applying for registration, that Cap.10 does not apply to the judgment, or that the judgment was registered in contravention of the provisions of the Law.

Under Law 121(I)/2000, defences that may be raised, apart from challenges to the jurisdiction of the court, include the proven satisfaction of the judgment and the fulfilment of the conditions specified in the relevant treaty.

According to the EU Regulation (Article 45), apart from issues relating to public policy and service/default appearance that are mentioned above, other grounds for refusing recognition include, inter alia, where the judgment is irreconcilable with a judgment given between the same parties in the Member State addressed, or where the judgment is irreconcilable with an earlier judgment rendered in another Member State or in a third state involving the same cause of action and between the same parties, provided that the earlier judgment meets the conditions necessary for its recognition in the Member State addressed.

3. What are the applicable legal principles relating to the recognition and enforcement of arbitration awards made in foreign states and what are the defences?

The recognition and enforcement of foreign arbitral awards in Cyprus is governed by the International Commercial Arbitration Law of 1987 (Law No. 101/1987), and in particular by Articles 35 and 36 thereof, and the New York Convention (NYC) on the Recognition and Enforcement of Foreign Arbitral Awards, which was ratified by the Ratification Law 84/1979.

Article 35 of Law 101/1987 provides that an arbitral award, irrespective of the country in which it was rendered, shall be recognised as binding. A party seeking the recognition and enforcement of a foreign arbitral award must file a written application before the court and submit a duly authenticated original or a certified copy of the award. With the recent amendment to the said law, it is no longer required to produce a duly authenticated original or certified copy of the arbitration agreement, nor certified translations thereof, in contrast to the requirements provided under Article IV of the NYC. With this amendment, the procedure for the recognition and enforcement of arbitral awards before the Cypriot courts has been simplified, since the domestic legislation now provides for more favourable requirements than those provided in the NYC.

If the arbitral award is not made in an official language of the Republic of Cyprus, the court may request the applicant to produce a translation of the award into one of the official languages of the Republic of Cyprus.

Article 36 of the Law sets out the grounds upon which an application for the recognition or enforcement of an arbitral award may be refused. These grounds are, in essence, identical to those set out in Article V of the NYC.

The reasons for which an application may be refused are set out in Article 36 and relate to: the capacity of a party to the arbitration agreement or invalidity of the agreement; improper notice of the appointment of an arbitrator or of the arbitral proceedings; or inability to present the case; the award covering disputes outside the arbitration agreement or decisions beyond its scope; the arbitral tribunal’s composition or the procedure followed; and the award’s binding effect or its setting aside or suspension.

In addition, the application shall be refused if the court, even on its own motion, finds that the subject matter is not capable of settlement by arbitration, or that the recognition or enforcement would be contrary to the public policy of the Republic of Cyprus.

4. What are the practicalities of the process for recognising and/or enforcing a foreign judgment or arbitration award?

The court fees involved and time required for the recognition and enforcement of a foreign judgment or arbitration award vary extensively depending on the origin of the foreign judgment and applicable framework, the reaction and resistance employed by the other side, and the schedule of the court in fixing the application for hearing, among other things.

The most efficient method of recognition and enforcement of a foreign judgment is without a doubt the one provided by the European Union framework under The most efficient method of recognition and enforcement of a foreign judgment is without a doubt the one provided by the European Union framework under  Regulation 1215/2012 as the foreign judgment is essentially “automatically” recognised and enforceable. Similarly, the process for the recognition and enforcement process under Cap.10 is also quite efficient and simple, as it concerns an ex parte application which is generally adjudicated much quicker (in some cases within two weeks from the filing of the ex parte application). However, the enforcement may be delayed as the judgment debtor has the right to apply to the court to set aside the recognition order.

The same factors generally also apply to the applications by summons in the context of the Law 121(I)/2000, in that the time needed to adjudicate the case highly depends on the resistance brought by the other side, the grounds of opposition, and the schedule of the court in fixing a date for the hearing, among other things. The court fees associated with an application for the recognition and enforcement of a foreign judgment are negligible (circa EUR 150.00 for the application, affidavit, exhibits and a “simple” service to the other side within the jurisdiction). As for the timing, on average, applications by summons under the process provided by Law 121(I)/2000, in a standard procedure (i.e. no interim applications are filed that could delay the process), may be adjudicated within three to five months from the date of filing the application.

The district courts of Cyprus have jurisdiction to adjudicate applications for the recognition and enforcement of foreign judgments at first instance. Generally, in determining which district court of Cyprus has jurisdiction, the residency of the interested parties, the existence of assets within the jurisdiction, other substantial links and so on are factors that are taken into account. For example, under section 2 of Law 121(I)/2000, the court that has jurisdiction is the district court of the district in which the respondent is residing, or if the respondent is abroad, the district in which the applicant is residing. In all other cases, the District Court of Nicosia has jurisdiction. This conforms with section 21(3Α) of the Courts of Justice Law (Law 14/60) which was recently amended in light of the new Civil Procedure Rules of 2023, which provides that in cases where jurisdiction arises by operation of European Union and/or international and/or private international law and/ or any legislation that applies in the Republic of Cyprus, including the Civil Procedure Rules of 2023 and/or common law, the competent court to adjudicate such matters is the District Court of Nicosia.

5. What rights are there to appeal against a decision on recognition/ enforcement and do appeals prevent enforcement?

Most judgments that grant recognition or enforcement may be appealed, but as a general rule an appeal does not automatically stop enforcement. To prevent enforcement, the party seeking it must apply to the court for a stay of execution pending appeal or other similar interim relief. The process to be followed to prevent enforcement depends on the legal framework under which the recognition of the judgment was given.

Regarding EU judgments to which Regulation 1215/2012 applies, under Article 45 of said Regulation, any interested party may apply for refusal of recognition, and under Article 46 for the refusal of enforcement if any of the grounds referred to in Article 45 are found to exist. Such grounds mainly concern grounds of contravention to public policy, that the defendant was not served with the document which instituted the proceedings and a default judgment was given, that the judgment is irreconcilable with another judgment under certain conditions, and so on.

The other legal frameworks for recognition and enforcement under Law 121(I)/2000, Cap.10 and common law action all involve the issuance of a final court judgment and/or order of recognition. In other words, once the Cyprus court issues a final order or judgment for recognition, such judgment or order is subject to appeal under the general principles for appeals against a Cyprus court order or judgment, by operation of the Civil Procedure Rules, the Courts of Justice Law (Law 14/60) and other relevant legislation.

Under Part 41.2 of the Civil Procedure Rules of 2023, an appeal against a final judgment or order of recognition must be filed by the interested party within 42 days of the issuance of the order or judgment. Under Part 41.7 of the Civil Procedure Rules of 2023, unless the Court of Appeal or the first-instance court orders otherwise, an appeal does not automatically operate as a stay of any order or judgment of the lower court, and an application to stay the execution of an order or judgment of the lower court must first be filed in the lower court. The court will exercise its discretion in deciding whether it will grant the stay the enforcement or not. That said, ensuring the effectiveness of the first-instance judgment or order on the one hand and the effectiveness of the right to appeal on the other are the main factors influencing the exercise of the court’s discretion (Paphos Nautical Club v. Cyprus Ports Authority (1991) 1 AAD 1147).

6. What measures are available to obtain information about a judgment debtor’s assets (in the context of the enforcement of a foreign judgment or award) and what are the sanctions for non-compliance?

In the event that a foreign judgment or award is recognised in Cyprus, a judgment creditor may request the examination of the judgment debtor under Part VIII of Cap.6, in order to obtain information regarding the debtor’s financial situation and assets for the purpose of enforcing the judgment. According to Article 82 of Cap.6, where a debt payable under a judgment or court order remains unpaid, the court may, upon the application of the judgment creditor, order the examination of the judgment debtor regarding, inter alia, its financial situation or any interest they may have in movable property and the submission of an affidavit, in which the judgment debtor must provide a full disclosure of all property in which they have/had any direct/indirect interest.

Furthermore, the judgment debtor may be examined in relation to the disclosure of assets that may be available for the satisfaction of the judgment debt, and the disposal of any assets in which the judgment debtor engaged after the creation or arising of the civil liability.

This mechanism enables the judgment creditor to obtain information about a judgment debtor’s assets and provides a powerful tool for securing such information, as any failure by the judgment debtor to comply with a relevant court order may give rise to contempt of court proceedings. Moreover, if the debtor provides false information or conceals assets during the financial examination, they may be liable for perjury.

Furthermore, where there are indications of a risk of dissipation of the judgment debtor’s assets, the judgment creditor may, within the context of the application for recognition and enforcement of the foreign judgment, apply for a freezing order and an ancillary disclosure order. Through such an order, the judgment debtor may be required to disclose all assets held, directly or indirectly, in Cyprus and/ or abroad. Similarly, any failure or refusal by the judgment debtor to comply with such an order would entail all the consequences arising from contempt of court.

7. What interim measures are available to preserve assets pending enforcement and what are the territorial limits of these measures?

There are various interim measures and remedies available pending enforcement, while the Cyprus courts retain the power to issue worldwide freezing orders in certain cases. While the national framework under Cap.10 and the common law action all rely on the national law of Cyprus in relation to protective measures available, Article 40 of Regulation 1215/2012 also refers to the national law of the Member State as the applicable law for the implementation of protective measures.

In Cyprus, protective measures are usually pursued and granted in the form of an interim order, the issuance of which depends on the satisfaction of three main criteria under section 32 of the Courts of Justice Law (Law 14/60), being that there must be a serious matter to be tried; there must be a strong possibility of success; and if the interim relief is not granted, it will be difficult or impossible to do justice at a later stage, in that the applicant will suffer irreparable harm which cannot be remedied by monetary compensation. If there is matter of urgency and/or other special circumstances, the applicant may apply to the court with an ex parte application, but in such case additional conditions imposed by the combined provisions of section 9 of the Civil Procedure Law (Cap.6) and Part 23.6 of the Civil Procedure Rules of 2023 must be satisfied.

The interim orders available to preserve assets pending enforcement, subject to the specific and subjective circumstances of each case, are the following, among others:

• Freezing order — Mareva injunctions. To freeze the judgment debtor’s assets to prevent them from dissipating them until enforcement measures take effect. In some cases, the Cyprus courts having the power to do so may grant worldwide freezing orders with extraterritorial effect. However, it must be noted that enforcement in such countries is not automatic: the assets may be frozen, but enforcement is subject to the relevant national law considerations of the specific country.
• Freezing order — Chabra injunctions. To freeze assets held or owned by a third party in benefit of the judgment debtor.
• Garnishee order. Provided by sections 73–81 of the Civil Procedure Law, Cap.6, this method of enforcement is usually employed where an intermediary, such as a bank, holds funds or assets on behalf of the judgment debtor. The garnishee (e.g. the bank), will be ordered to appear before the court and be examined regarding assets held on behalf of the judgment debtor. After hearing the interested parties, and provided that all conditions are satisfied and the assets are indeed being held by the bank or intermediary, the court may order the garnishee to release the frozen assets or funds to satisfy the judgment debt.

8. Once a foreign judgment or award has been recognised, what procedures are available for enforcement against the following types of assets?

Once a foreign judgment or arbitral award has been recognised and declared enforceable, it is treated as if it were a domestic Cypriot judgment and may be enforced through the enforcement procedures under the Civil Procedure Law (Cap.6).

Bank accounts
The court can issue an order requiring a bank (as a third party holding funds for the debtor) not to dispose of the funds and to pay them directly to the judgment creditor.

Shares
Cyprus courts may issue injunctions or charging orders attaching the judgment debtor’s interest in shares or other securities under the Charging Orders Law 1992 (Law 31(I)/1992).
A charging order over shares owned by the debtor may be followed by an order for their sale to satisfy the judgment debt.

Debts due to the judgment debtor from third parties
Debts due to the judgment debtor by third parties are enforced through garnishee proceedings (third-party debt orders). Usually a writ of attachment is issued attaching the funds held by the third party on behalf or for the benefit of the judgment debtor. The court can then order the third party that owes money to the judgment debtor to pay that debt directly to the judgment creditor against the judgment debt.

Real estate
MEMO
The judgment can be registered at the Land Registry as a charge encumbrance (MEMO) on the legal title of immovable property located in Cyprus and owned by the judgment debtor. The judgment debtor will not be able to sell the property or gift it without settling the judgment debt.

Writ of sale
Allows the forced sale of immovable property located in Cyprus and owned by the judgment debtor to satisfy the judgment debt.

Movable property
Movable assets (e.g. vehicles, goods, equipment) owned by the judgment debtor can be seized with a writ of movables. They can then be sold to satisfy the judgment debt

Application for examination of judgment debtor
The judgment debtor attends the court for examination for the purpose of ascertaining the amount they can pay per month in satisfaction of the judgment debt. An order for the repayment of the judgment debt via monthly instalments may be issued by the court.

9. Will the court allow enforcement against assets that are beneficially owned by the judgment debtor but are not legally owned or registered in its name?

In general, the court’s jurisdiction to grant an order against assets that are beneficially owned by a third party is limited. However, in exceptional cases the Cypriot courts, following the principles established in TSB Private Bank International SA v. Chabra [1992] 1 WLR 231, may exercise what is known as Chabra jurisdiction. Under this doctrine, the court may issue a freezing order against a third party who is not a defendant to the substantive proceedings, where there is good reason to believe that the assets held by that third party are in reality beneficially owned by the judgment debtor.

In the case of Behbehani v. Behbehani and others [2019] EWCA Civ 2301, [2020] All ER (D) 20 (Jan), the Court of Appeal held that a spouse in whose favour a financial remedy order was made is not precluded from enforcing the order against assets legally owned by a third party if those assets are found to be beneficially owned by the judgment debtor.

Moreover, in Parbulk II AS v. PT Humpuss Intermoda Transportasi TBK and others [2011] EWHC 3143 (Comm), the court recognised that assets in the hands of third parties could be frozen if there is a sufficient connection or causal link between the judgment debtor and the assets.

In cases where the legal title to the asset is held by a third party, the court may require the third party to be joined to the enforcement proceedings. This allows the court to scrutinise the third party’s rights and determine the assets’ true beneficial ownership.

10. Will the court allow enforcement against assets that are jointly owned by the judgment debtor and a third party?

In Cyprus, enforcement is possible against assets that are jointly owned by a judgment debtor and a third party, but only to the extent of the debtor’s beneficial share in the asset. The third party is entitled to challenge the enforcement and demonstrate that the asset belongs entirely beneficially to them or that the debtor holds the asset on trust or as a nominee.

Originally published by The Global Legal Post.

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.