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 further 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”, namely if there are no mortgages or encumbrances, and payment is made in one lump sum upon transfer, there is no need for a contract of sale. In this case, the signed land registry form required to transfer the property will suffice. If there is a mortgage on the property or if, otherwise, the payment is made is stages, a buyer must seek to have a written signed agreement to safeguard their rights in terms of the advance payments and generally their rights against the seller or third-party interests. If the parties opt for a signed agreement, the buyer must pay stamp duty.

Property is legally bought through a transfer process at the Land Registry. As a buyer, you need to present identification (ID or passport), proof of payment for transfer fees, if applicable (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 will also require relevant approval from the District Officer pursuant to the relevant laws on foreigners buying property. If the buyer is a company or any other legal entity, they will need copies of all corporate documents, such as the certificate of incorporation and the certificate of directors and secretary of the company from the Registrar of Companies. If the buyer is acting through a representative, they will need to also have a duly signed power of attorney, duly certified by a certifying officer, or otherwise legalized, if signed abroad. The seller will also need to present a number of documents, including tax and other clearances.

Yes. Currently, property transfers in Cyprus cannot be completed online. Both parties (or their representatives) must physically visit the Land Registry. The buyer or the seller can alternatively appoint a representative through a duly 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 otherwise legalized, if signed abroad.

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

If the property has a mortgage or any other encumbrance or 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 removes or lifts the said mortgage or encumbrance. This is typically done if such a beneficiary, for example a bank, is paid in full, and this is further typically a commercial term of sale of the property, namely that part of the purchase price will be paid to the mortgagee or other beneficiary of the encumbrance, so they will permit 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 and specifically that a term is included for the seller to secure a “bank waiver” as it is commonly referred to, namely an undertaking from the bank or other beneficiary of an encumbrance, that upon payment by the buyer they will lift the mortgage. This is now a legal requirement, set by law, and such waivers have a standardized form and are included in the contract of sale.

No, there is no VAT for the sale of property such as a house, an apartment, an office, or a shop, with an independent title deed, used for a few years or more. To clarify, (unless exemptions apply), VAT applies if the property purchased is land suitable for development or a newly developed property, with no independent title deed, used for less than 2 years within 5 years from its construction. When no VAT applies, Land Registry transfer fees will apply.

Yes, Land Registry transfer fees will apply when buying property, subject to exemptions. If the property was sold with VAT, such as land or newly developed property, then no transfer fees apply. Other exemptions on transfer fees may be available for transfers of property to spouses, children, siblings, and other relatives, intra-group transactions, or under specific government schemes. For more information, see the dedicated FAQs topic on 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 on Transfer Fees.

If they apply, transfer fees are based on the property’s market value, as determined by the Land Registry. They are 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. There are a number of online calculators which can assist with the calculation, including the official website of the Land Registry and the website of several estates agents’ sites. The market value of the property may follow the declared purchase price of the sale and purchase of the property, but the Land Registry is free to make their own determination of market value, which may differ. Customarily they use their most recent valuation, as it appears on the title deed. For more information, see the dedicated FAQs topic on Transfer Fees.

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

Stamp duty will apply if there is a written contract of sale for the sale and purchase of property. For more information, see the dedicated FAQs topic on Stamp Duty.

Unless agreed otherwise, the buyer will pay for the stamp duty on the contract of sale of property. 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, in case the purchase price of the property. 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. There is a maximum of €20,000. There are several online calculators to assist with the calculation including the official tax authority website. It’s paid 30 days from signing or, if signed abroad, 30 days from bringing the document into Cyprus. If the contract of sale is not duly stamped, it will not be accepted by the tax authorities, for purposes of obtaining tax clearance, and it will not be accepted by the Land Registry for purposes of depositing the contract of sale for specific performance purposes. For more information, see the dedicated FAQs topic on Stamp Duty.

Having a written contract of sale for property, duly stamped, and lodging it with the Land Registry is beneficial to the buyer, as it creates an encumbrance on the property, duly recorded by the Land Registry, and it further permits specific performance. In other words, the seller cannot re-sell or otherwise dispose of the property and the buyer, if they deem so, may apply in court to force the terms of the contract of sale, namely force the owner to accept the agreed purchase price and transfer the property to the buyer. 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.

Property without a separate title deed cannot be legally transferred. For example, you cannot buy a specific area within a larger property, such as the 1st floor of a house. To do so the owner must legally undertake the process of sub-division, if at all legally possible, before a buyer can legally buy and obtain the property in their name. Having said that, you can freely enter into an agreement to acquire certain contractual rights over property without independent title deeds, including the right to use or the option to buy, once duly divided.

A buyer can buy a portion or a share of the property, for example 1/3 (one third), but this is an undivided 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, having an undivided portion of the land, own a share of all the land and not any specific area. Generally speaking, each co-owner can transfer, mortgage, or pass on their share as inheritance, but use and exploitation of the property is subject to the consent and agreement of all co-owners.

Yes, non-EU nationals can buy property in Cyprus provided they apply and secure written consent from the District Officer, in accordance with applicable law, before the transfer can proceed. Typically, foreigners can buy one apartment or house, or a plot of land up to 4,014 square meters. Additional property may be allowed under exceptional circumstances. Based on prevailing practices, up to two properties are generally acceptable. For more information, see the dedicated FAQs topic on Foreigners Buying Property.

A reservation agreement is a preliminary contract where the seller agrees not to sell the property to others for a specified period of time, while the buyer completes the due diligence exercise 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 agreed 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. It’s advisable to have one in place where there are mortgages and other complications, which create the need for some time before the parties can enter a formal contract of sale. For instance, where the property is to be bought under a newly established company. Another reason is to lock the negotiated price, creating a burden, namely the deposit, before either party changes their mind freely.

A buyer, through their lawyers and representatives, must conduct due diligence before buying or even committing to buy property. Due diligence ensures the property is free from legal issues such as mortgages, encumbrances, illegalities, structural issues, and other issues, and generally 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 property. You should also ask for a Land Registry search to determine if there are mortgages and other encumbrances. Furthermore, you should conduct a search on the Land Registry Portal to verify the information on the title deed such as a recent valuation. Most importantly you should perform a physical inspection and seek professional reports. Specifically, buyers should seek and obtain expert reports by land surveyors to verify that the physical borders, perhaps neighbouring other properties, match the legal borders. A buyer should additionally seek professional inspection by engineers or architects to check for structural issues, illegal modifications, humidity, and other issues, which the buyer will inherit once the property is bought. Lastly, ideally a buyer can do a valuation of the property by chartered surveyors, especially if finance is involved.

Yes, always. Physical inspections reveal issues like incorrect physical boundaries, illegalities, structural issues, environmental nuisances, and other matters that may not appear in documents. Ideally, these inspections should be carried out by a professional, such as a land surveyor, structural engineer, architect, or chartered surveyors who can also produce a report.

No, the buyer of property does not pay any direct tax on the purchase of property (except VAT, if applicable). If there is a written and signed contract of sale, the buyer must pay stamp duty. The buyer will also be responsible for paying Land Registry transfer fees, if applicable. When selling property, it is the seller who must pay taxes, including capital gains tax at 20% (or corporate tax, as applicable) property taxes, municipal tax, water and sewerage dues, etc.

Presently, the new title deed is issued on the spot on the date of the transfer at the Land Registry. It may happen that the Land Registry is unable to do so, depending on their workload, so 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 of sale. This is typically the case where a seller of property does not have readily available funds to settle capital gains and other taxes, so an advance payment is made upon signing the contract, for example 30% of the purchase price, and the remaining amount 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 property and safeguarding their advance payment. The seller uses the advance payment to settle all taxes and secure all clearances to complete the transaction.

There is no legal requirement to pay tax, nor to have tax identification number, at the time of buying property, but as per recent practice of the tax authorities, it will be requested by the buyers in the context of securing tax clearance by the seller. Thus, yes, as a matter of practice, a buyer should obtain a tax identification number, even if they are foreigners and not Cyprus tax residents. To clarify, obtaining a tax identification number does not mean that the buyer becomes a Cyprus tax resident. It is obtained purely for property related purposes, and will be applied when property is sold or rented, when any such transaction may be taxable.

There is a very wide range of legislation which is relevant to the purchase of property, or aspects thereof. 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)/2011, 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. Myriads of regulations, decrees, decisions, guidelines and other secondary legislation also applies.