Legally it is not required. A verbal agreement is valid. However, a written agreement is strongly recommended as it clearly outlines the terms of the sale, protects your rights, and allows the buyer to deposit the contract at the Land Registry for specific performance, namely, to enforce its terms. As a rule of thumb, where the transaction is “clean” meaning there are no mortgages or encumbrances, and payment is made in one lump sum upon transfer, there is typically no need for a contract of sale. In such cases, the signed Land Registry form required to transfer the property will suffice. However, if there is a mortgage on the property or if the payment is made in stages, a buyer must seek to have a signed agreement to safeguard their rights concerning the advance payments and to protect themselves against the seller or third-party interests. If parties opt for a signed agreement, the buyer must pay stamp duty.

Land is legally purchased through a transfer process in the Land Registry. As a buyer, you need to present identification (ID or passport), proof of payment for transfer fees, if applicable (usually paid on the date of the transfer) and a duly stamped copy of the contract of sale (if one exists). If the buyer is a foreigner, they must also obtain approval from the District Officer pursuant to the relevant laws governing foreigners buying property. If the buyer is a company or any other legal entity, they must present copies of all corporate documents, such as certificate of incorporation and certificate of directors and secretary of the company from the Registrar of Companies. If the buyer is acting through a representative, a duly signed and certified power of attorney must be provided. If signed abroad, it must be properly legalized. The seller will also be required to present a number of documents, including tax clearances and other relevant certificates.

Yes. Currently, land transfers in Cyprus cannot be completed online. Both parties (or their representatives) must physically attend the Land Registry. The buyer or the seller can appoint a representative through a properly certified power of attorney. However, the representative must bring all necessary documents to the Land Registry, including the original power of attorney, duly certified by a certifying officer or properly legalized if signed abroad.

If the land has a mortgage, encumbrance, or any other legal restriction, it cannot be transferred unless the beneficiary of such a mortgage or encumbrance also attends the Land Registry, on the date of the transfer or before, and formally removes or lifts the said mortgage or encumbrance. This is typically done if the beneficiary (for example a bank), is paid in full. It is also usually a commercial term of the sale that part of the purchase price will be paid directly to the mortgagee or other beneficiary so they consent to the transfer. Where a mortgage or encumbrance is identified during the due diligence stage, it is critical that it is duly addressed in the contract of sale. Specifically, a term should be included requiring the seller to secure a “bank waiver” (as it is commonly referred to), namely, a written undertaking from the bank or other beneficiary that, upon receiving payment from the buyer, they will lift the mortgage or encumbrance. This is now a legal requirement under Cyprus law. Such waivers follow a standardized format and are incorporated into the contract of sale.

The commercial terms for the sale and purchase of land, including the amount and manner of payment, are governed by the agreement between the parties. After an agreement is reached, and possibly after an advance payment is made, the seller must pay all taxes and dues and secure the necessary tax and other clearances required to transfer the land in the buyer’s name. These documents must be presented to the Land Registry for prima facie check. If satisfied, the Land Registry will set a date the transfer. This includes, the duly stamped contract of sale, if any, and the duly signed transfer form. On the date of the transfer, the parties, or their representatives, must physically attend the Land Registry and submit all necessary documents. If transfer fees apply, the Land Registry will officially determine the amount, and the buyer must pay it at the cashier desk and obtain a receipt before the process can continue. Once completed, the parties will attest that the payment has been made in front of the Land Registry clerk and, if necessary, sign additional documents. The clerk will then process the transfer and, as per current practice, issue a new title deed on the name of the buyer.

Yes, VAT applies to the purchase of land unless an exemption applies. It is borne by the seller and is typically 19% on the agreed purchase price. Generally speaking, VAT applies to all undeveloped land intended for, or suitable for, development in the context of business activity. In some cases, where the VAT authorities determine that the sale does not constitute commercial activity, the transaction may be exempt, for example, when family-owned land is sold as a one-off to a couple to build their home. For the exemption to apply the seller must apply to the VAT authorities and obtain a formal ruling based on their specific circumstances. If the land has a house or other building erected on it, reflected in the title deed description, then VAT will not apply. In any event if VAT applies, no Land Registry transfer fees will apply.

If the land is sold with VAT, then no transfer fees apply. If the sale of the land is exempt from VAT, whether due to an official VAT authority ruling for exemption or otherwise, then transfer fees will apply. Other exemptions from transfer fees may be available for family transfers, group transactions, or under specific government schemes. For more information, see the dedicated FAQs topic of Transfer Fees.

The buyer is responsible for paying transfer fees, if they apply. There are no transfer fees when VAT applies. For more information, see the dedicated FAQs topic of Transfer Fees.

If they apply, transfer fees are based on the land's market value, as determined by the Land Registry. They are calculated based on a sliding scale, namely, 3% for the first €85,000, 5% for amounts between €85,001 and €170,000, and 8% for amounts exceeding €170,000. A 50% discount applies to the total amount. A number of online calculators are available to assist with the calculation, including on the official website of the Land Registry and several estate agents’ websites. The market value may follow the declared purchase price of the land sale, but the Land Registry is free to make its own determination, which may differ. For more information, see the dedicated FAQs topic of Transfer Fees.

Transfer fees, if applicable, are paid, after being officially calculated by the Land Registry on the date of the transfer, at the cashier desk of the Land Registry. No transfer can be effected unless the transfer fees are paid, if they apply. Accepted methods of payment include banker’s draft, credit card, cash, or a combination thereof. For more information see the dedicated FAQs topic of Transfer Fees.

Stamp duty applies if there is a written contract of sale for the sale of land. For more information, see the dedicated FAQs topic on Stamp Duty.

Unless otherwise agreed, the buyer is responsible for paying the stamp duty on the contract of sale of land. For more information, see the dedicated FAQs topic on Stamp Duty.

The amount of stamp duty depends on the value of the subject matter contract. For amounts up to €5,000, no stamp duty is charged. For amounts between €5,001 and €170,000, a rate of 0.15% is applied. For amounts exceeding €170,000, a rate of 0.20% is applied. The maximum stamp duty payable is €20,000. There are several online calculators available to assist with the calculation, including one on the official tax authority website. Stamp duty must be paid within 30 days from signing the contract or, if signed abroad, within 30 days of bringing the document into Cyprus. If the contract of sale is not duly stamped, it will not be accepted by the tax authorities (for tax clearance) or by the Land Registry (for depositing the contract for specific performance purposes). For more information, see the dedicated FAQs topic on Stamp Duty.

Having a written contract of sale for land, duly stamped and lodged with the Land Registry, is beneficial to the buyer as it creates an encumbrance on the land, duly recorded by the Land Registry, and it further permits for specific performance. In other words, the seller cannot re-sell or otherwise dispose the land, and the buyer may, if they deem so, apply to court to enforce the terms of the contract of sale, namely, to force the owner to accept the agreed purchase price and transfer the property. This is especially beneficial in cases where one or more advance payments were made upon signing the contract of sale, and the completion of the transfer process is pending tax and other clearances to be secured by the seller.

Land without a separate title deed cannot be legally transferred. For example, you cannot buy a specific area within a larger plot or field of land. To do so, the owner must legally undertake the process of subdivision before a buyer can legally purchase and obtain the land in their name. That said, you can still freely enter into an agreement to acquire certain contractual rights over land without title deeds, including the right to use the land or option to buy it once it is duly divided.

No. Only if the part has a distinct title deed or has been legally subdivided can a buyer legally purchase and obtain title deed for a specific part of land. A buyer can purchase a portion of the land, for example 1/3 (one third), but this is an invisible share, meaning joint ownership with others. Unless there is a duly signed separation agreement between the co-owners, lodged with the Land Registry for specific performance, all co-owners of an invisible share own a portion of the entire land and not any specific area. A separation agreement between co-owners may serve to legally allocate or distinguish the rights of use (or otherwise) of a specific part of a larger piece of land.

Yes, a buyer can purchase a portion of land, for example 1/3 (one third). However, this is considered an invisible share, meaning the buyer becomes a joint owner of the entire land and not to a specific area.

Yes, non-EU nationals can buy land in Cyprus, provided they apply for and obtain written consent from the District Officer, in accordance with applicable law, before the transfer can proceed. For more information, see the dedicated FAQs topic on Foreigners Buying Property.

A reservation agreement is a preliminary contract in which the seller agrees not to sell the land to others for a specified period, while the buyer completes due diligence and the parties negotiate a final contract of sale, if any. It typically involves a refundable or non-refundable deposit and can provide clarity on initial commercial terms such as the purchase price, payment terms, and timeframe for entering into a formal contract of sale and/or completion of the transaction. A reservation agreement is not legally necessary. However, it is advisable to have one in place when there are mortgages and other complications that require time before the parties can enter a formal contract of sale. For instance, when the land is to be bought under a newly established company. Another reason a reservation agreement is advisable is to lock in the negotiated price by creating a burden, namely the deposit, before either party can freely change their mind.

A buyer, through their lawyers and representatives, must conduct due diligence before buying or even committing to buy land. Due diligence ensures the land is free from legal issues such as mortgages, encumbrances, zoning restrictions, and other potential problems, and generally confirms that it is suitable for the intended purpose. It protects the buyer from unexpected legal or financial complications after the purchase. For more information, see the dedicated FAQs topic on Due Diligence.

Generally speaking, you should at least obtain and review the title deed to verify ownership and the characteristics of the land. If there is no title deed, then review the contract of sale. You should also request a Land Registry search to determine if there are mortgages or other encumbrances. Furthermore, you should conduct a search on the Land Registry portal to verify the information on the title deed and determine the zoning and other characteristics of the property. This is especially important if the land is intended for development, to determine whether it is suitable. Lastly you should perform a physical inspection. Ideally a buyer you should seek and obtain expert reports such as land surveys, valuations by chartered surveyors, and an architect reports on permitted developments, namely what can be built on the land, how tall, how many floors, permitted areas etc.

Yes, always. Physical inspections can reveal issues such as incorrect boundaries, environmental nuisances, or land features that may not appear in documents, like steep inclines or other terrain issues. Ideally the inspection should be carried out by a professional, such as a land surveyor, who can also provide a detailed report.

No, the buyer does not pay any direct tax on the purchase of land, except for VAT. Even so, VAT is paid to the seller in addition to the purchase price, and the seller is responsible for registering with the VAT authorities and paying the VAT due. When selling land, it is the seller who must pay taxes, including capital gains tax at 20%, property taxes, municipal tax, water and sewerage dues, and others.

Presently, the new title deed is issued on the spot on the date of the transfer. However, it may happen that the Land Registry is unable to do so, depending on their workload, in which case it may take a few days.

Yes, but this must be explicitly stated in a written contract of sale. Payment terms should be agreed upon before signing the contract. This arrangement is typically used when the seller does not have sufficient funds readily available to settle capital gains tax and other obligations. In such cases, an advance payment is made upon signing the contract, for example 30% of the purchase price, and the remaining balance is paid upon transfer. The buyer secures the original contract of sale and lodges it with the Land Registry, thus blocking the disposal of the land and safeguarding their advance payment. The seller then uses the advance payment to settle all taxes and obtain the necessary clearances to complete the transaction.

There is a very wide range of legislation which is relevant to property transactions and related matters. This includes the Immovable Property (Tenure, Registration, and Valuation) Law, Cap. 224, Contract Law, Cap. 149, Transfer and Mortgage of Immovable Property Law, L.9/1965 (as amended), Specific Performance Law, L.81(I)/201, Income Tax Law, L.118(I)/2002 (as amended), Capital Gains Tax Law, L.52/1980 (as amended) Value Added Tax Law, L.95(I)/2000 (as amended), Special Contribution for the Defence Law, L.117(I)/2002, The Assessment and Collection of Taxes Law, L.4/1978,The Local Authorities Laws, Land Registry Fees Law, Cap. 219, Planning and Housing Law, Cap. 96, Anti-Money Laundering Law, L.188(I)/2007 (as amended) and others. There are also myriads of regulations, decrees, decisions and other secondary legislation.