Yes, if you're renting out a property for a year or longer, the agreement must be in writing, signed by both parties, and witnessed by two individuals. This requirement is due to an old provision in Cyprus contract law. While electronic signatures might be accepted, it’s safer to use traditional paper and ink, and sign in front of witnesses. Additionally, having a written agreement is both practical and legally advisable as it clearly sets out the terms, rights, and obligations for both parties, reducing the risk of disputes or misunderstandings.

If there is no written agreement in place or, if the agreement is void, a tenant in possession of the property is generally viewed by law as having a “month-to-month” tenancy. This allows either the landlord or tenant to end the arrangement with proper notice, usually requiring one month’s notice. A valid, written, and duly signed contract is beneficial because it eliminates uncertainty and clearly defines the terms for both sides, especially the minimum duration of the tenancy. A landlord will be unable to enforce minimum duration terms and other commercially negotiated and commercial agreed terms if the agreement is verbal or invalid.

It is customary that the landlord, or their lawyers, produce and propose a tenancy agreement. It can be bespoke, namely tailored to the facts and circumstances at hand, or the landlord can opt for a somewhat standard tenancy agreement. Any proposed draft is, of course, subject to negotiation, and the tenant may ask for changes. It's your property, so you have the final say. If you don’t agree to any adjustments a potential tenant asks for, they might decide not to rent the property. Whether a bespoke or somewhat standard agreement is suitable depends on the nature of the property and the agreed commercial terms. Letting a small residential apartment for 1 (one) year is different than a commercial lease of an entire building for 10 years, for example. It is advisable to always seek legal assistance from experienced practitioners.

Yes, it’s advisable to seek the assistance of an experienced lawyer to draft the tenancy agreement, both to ensure that all terms are reasonably favorable to the landlord and to confirm that they are legally sound, clearly worded, and comply with relevant laws and best practices. This is particularly important for commercial or long-term leases, or any lease with substantial commitments from the landlord. While real estate brokers are skilled professionals in handling property transactions, their role does not extend to drafting or negotiating agreements. Similarly, landlords attempting to draft agreements themselves, based on a draft they came across which they considered standard, will often miss critical issue and eventually when problems with the tenancy will arise, they realize that such draft was not proper for their circumstances.

Legally and typically, landlords are responsible for covering the real estate agent's fees, namely the commission. However, it's possible to negotiate for the tenant to pay the broker’s fee instead. It is important to have a clear written agreement with the real estate agent specifying who is responsible for the commission, the exact amount, when is it paid and all other brokerage terms. If these matters are not clear, the default legal position is that the landlord must be pay the commission.

Typically, it is agreed as one (1) months’ rent, plus VAT. However, it is possible that the parties can negotiate and reach any commercial terms they deem fit, including the amount of rent. It is important to note that under mandatory provisions of applicable law, even if there is no agreement, the minimum commission payable to the broker is 3% of the total value of the transaction, this refers to the aggregate rent for the entire agreed duration, including any agreed renewals. Unless otherwise expressly agreed in writing, the agent’s fee is payable only upon completion of the transaction, and no fees accrues or becomes payable simply for the listing, marketing, promotion or other efforts of the broker to rent the property.

No. There is no requirement that the landlord gives exclusivity to any broker to rent a property. The agent may ask for exclusivity, and present a written agreement to that effect, to ensure that all their efforts and related marketing cost reach fruition, but this is a matter to be negotiated, and the landlord is free to refuse.

As a rule of thumb, V.A.T. does not apply on residential tenancies, namely where the property will be used by the tenant as a residence for habitation, irrespective of whether the landlord is a natural person, or a legal person, namely a company. However, V.A.T. will apply in commercial tenancies, namely where the property is used for a business, like a shop or offices. This again is irrespective of whether the landlord is a person or a company. Having said that, there are some exceptions where V.A.T. may not apply, such as, for instance where the landlord is renting an inherited property, one-off, and is not deemed to be person conducting business subject to registration with V.A.T. For such an exception, the landlord must apply and secure an official written ruling from the V.A.T. authorities based on their specific circumstances. To do that it is advisable they seek and obtain professional advice from lawyers and tax experts.

Generally yes, but exemptions may apply. Personalized professional advice should be sought based on specific facts and circumstances. These include consideration of whether the foreigner is a Cypriot tax resident and furthermore whether they are qualified and approved as non-domiciled (i.e. “non-dom”) for tax purposes. Generally speaking, a foreigner who is a Cyprus tax resident will pay all taxes and dues paid by a landlord, as if they were a Cypriot citizen. A foreigner who is a Cyprus tax resident, but who is a “non-dom” will be exempted from special defense contributions but will not be exempted from the general health system contribution. A foreigner who is not a Cyprus tax resident letting a property personally is theoretically liable to pay income tax on the rental income generated in Cyprus and thus prepare and file annual tax returns. They must theoretically additionally declare the said rental income to their home jurisdiction, where they are tax residents. If a double tax treaty applies, they may be able to deduct from whatever tax they already paid on that income in Cyprus. Whatever the case, all foreigners are obliged and will not be exempted from paying taxes and duties related to property ownership, such as property taxes imposed by the municipality.

Landlords cannot rely only on the legal system, in its present state, to collect the rent and otherwise ensure the due performance the tenancy agreement. It is imperative that additional pre-emptive steps are taken, before concluding a tenancy agreement to mitigate the risk of default. First, the landlord must seek professional advice on whether their property falls within the scope of rent control laws, namely if it was constructed prior to 31.12.1999, is in a controlled area, and was rented or available for rent on that date. If so, tenants may be afforded protection against rent increase and eviction, irrespective of default or any terms on the tenancy agreement, thus all dealings must take this into account. Landlords should seek and obtain adequate information on the tenant, including their passport, residency permits (if a foreigner), CV, and source of income. This will help create a profile and financial position of tenant which is indicative of whether such a person is able to pay rent as due, or is otherwise ideally, the guarantor should be natural persons, likely to be in default. References can also be sought. Lastly, especially in case of tenants which are limited liability companies, with limited history or track record, or assets, landlords should impose or seek a local guarantor or co-signatory to the tenancy, to enhance their legal recourse options, when and if default occurs.

A statutory tenant is a tenant who continues to occupy a property after the expiration or lawful termination of the initial duration of the tenancy agreement, provided that the property is in certain “controlled areas”, the property was constructed prior to 31 December 1999 and that the tenant is a Cyprus or an EU citizen. Following a relatively recent landmark court decision it is also a requirement that the property was rented (or was available for rent) on the 31 December 1999. This latter requirement has effectively limited the scope and effect of rent control laws, and the corresponding benefit to tenants, especially on account of evidentiary and factual difficulties in establishing whether the property was rented two or more decades ago.

Irrespective of whether the tenancy agreement has expired or any provisions of a valid tenancy agreement to the contrary, statutory tenants cannot be evicted except under certain specific circumstances prescribed by rent control law, such as persistent non-payment of rent, the landlord's personal or family use, nuisance, or plans to demolish or substantially alter the property. In some cases, namely for commercial rents, if a tenant is evicted, they will be entitled to compensation of at least 18 months’ rent or more reflecting the loss of goodwill, if it can be proven. Similarly, irrespective of any relevant provision in the tenancy agreement, landlords cannot increase the rent of statutory tenants, except as expressly permitted by rent control law. Specifically, rent cannot be increased if two years have not lapsed since the last increase and the percentage increase cannot be more than what is prescribed by law. The percentage is changed by decision of the council of ministers every two years. Until the 21st of April 2025, it is 6%. Alternatively, the landlord can apply for rent adjustment and seek to claim rent up to 90% of the market rate for rentals of equivalent property in the same radius. In any event all such applications by landlords, whether for eviction or rent increase, must be made by application to specialized court named rent control court and the process of seeking and obtaining a court order is by itself a very lengthy, costly and burdensome process.

Yes, significant. Rental income is taxable, either as personal income for natural persons or as part of corporate revenue for companies. For natural persons, rental income is taxed based on their total income after applying deductions such as a 20% allowance of rental income for maintenance, 3% of the property's acquisition cost for depreciation, and interest on related loans. For legal entities, rental income is taxed at a 12.5% corporate tax on profits. Shareholders of such entities who are Cyprus tax residents face additional taxes on distributed dividends, namely, 17% Special Defense Contribution (SDC) and 2.65% General Health System (GHS) contributions. Landlords must also pay taxes linked to property ownership, including annual property and refuse taxes. Additionally, landlords are subject to 3% SDC on 75% of gross rental income (effectively 2.25%) and a 2.65% GHS contribution on gross rental income. If the tenant is a business entity, they are required by law to withhold and remit SDC and GHS contributions directly to the authorities on behalf of the landlord. Exemptions and caps may apply under certain conditions, for example foreign landlords who are not Cyprus tax residents or have non-dom status. Specific advice should be sought.

The landlord is generally responsible for maintaining the property in a habitable condition, covering standard wear and tear. This includes repairs to plumbing, structural elements, roof insulation, damage due to leaks, electrical systems, heating, and air conditioning, essentially, any integral part of the property's structure. If the property is rented with appliances, the landlord is usually responsible for their maintenance and good working condition unless otherwise agreed. However, the landlord is not liable for damages or need for repairs caused by the tenant's misuse of the property (or appliances) or by their guests. This liability should be clearly detailed in the tenancy agreement. Needless to say, the landlord can negotiate the extent of their responsibility for repairs, especially for commercial, long-term leases.

Generally speaking, a tenant should be restricted from making any alternation to the property without the express written approval of the landlord. Such an alternation may be illegal or damage the nature of the property, far beyond the benefit of the rent. Such restrictions on alterations are typically an express term in the written tenancy agreement. Where and if a tenant does make an alternation, it is up to the landlord’s discretion to demand that the property is restored to its original condition prior to the alternation, at the cost of the tenant. This again is typically included in the tenancy agreement.

Rent increases are primarily governed by the terms of the tenancy agreement. A landlord cannot unilaterally increase rent without specific provisions allowing it. Many agreements stipulate rent increases every two years, typically ranging between 3% and 9%. If the agreement does not cover rent increases or the specified period has not lapsed, rent can only be renegotiated upon the tenancy's expiration or by giving proper notice to terminate, which may result in a new agreement with revised terms. For statutory tenants, rent increases are regulated by rent control laws, regardless of the terms of the tenancy agreement. Such increases are permitted every two years and capped by law. Alternatively, landlords are allowed to apply for a "fair rent" assessment to demand up to 90% of the market rate for comparable properties. The current legal cap, set by a decree of the Ministry of Interior, is 6% until 21 April 2025. It is important to note that while landlords may have the legal right to enforce rent increases or terminate the tenancy, these processes are often lengthy, costly, and taxing, especially under rent control, where disputes must be resolved in a specialized Rent Control Court. Consequently, landlords are advised to weigh the financial and other costs of disputes against the potential benefit of a rent increase. In most cases, amicable negotiation yields better outcomes than pursuing legal action.

If a tenant is in default, it may be tempting to seek legal action. However, given the current state of the legal system in Cyprus, it is advisable to try and reach an out-of-court solution first. Court cases in Cyprus can take around 2-6 years to be resolved, and during that time, the tenant may not pay any rent, leaving the landlord without income. If the case eventually reaches a court decision, the tenant might not have the funds to pay the overdue rent, which could create further complications. In such cases, the landlord would need to take additional steps to recover the unpaid rent, such as requesting monthly payments based on the tenant’s salary or receivables. Considering the time, effort, cost, the possibility of losing and the potential difficulty of enforcing a judgment, it may be more practical to explore alternative solutions, such as negotiating directly with the tenant to resolve the matter more quickly and avoid prolonged legal proceedings. As a rule of thumb, a landlord should prioritize recuperating possession of the property to stop their losses. Receiving unpaid rent and other damages, or part thereof, should be secondary. If all else fails, the landlord should litigate

Check the tenancy agreement. Subject to any specific provisions on the matter in the tenancy agreement, the landlord can issue a letter of demand and if the rent remains outstanding seek to terminate the tenancy, evict the tenant, and ask for damages, including any rent outstanding plus interest. This must be done through an application to the court and undergoing all relevant legal proceedings. A landlord cannot, on their own, enter the property and recuperate possession of the property, even if the tenant is in default. For statutory tenants, not paying the rent is included in the specific circumstances set out by rent control law for which the landlord can terminate the tenancy and evict the tenant. In fact, relatively recent amendments on rent control law have established an expedited eviction process just for cases where a statutory tenant fails to pay rent. Paradoxically, this expedited process does not apply to normal tenancies. Generally speaking, both in civil court and specialized rent control court, not paying rent is the most straightforward basis for a landlord to evict the tenant in court. Having said that, given the current state of the legal system, any court process will be lengthy, costly and taxing. Seeking an amicable solution is advisable. If all else fails landlords should litigate. As a general matter, it’s more important to recover possession of the property promptly rather than recover outstanding rent.

It depends on the terms of the tenancy agreement and the nature of the property. A landlord can generally terminate the tenancy based on the terms of the tenancy agreement, namely upon expiry of the duration (with notice not to renew, if applicable) and/or by written notice of termination to the tenant in the specified period (or set by law, on a month-to month tenancy). Upon such termination, the tenant must theoretically vacate the property, and the landlord can recuperate possession and use it for their reasons. A landlord cannot arbitrarily demand that the tenant terminate the tenancy and vacate the property, even if the landlord intends to use it for personal reasons. The landlord can ask the tenant to vacate the property for their own use, but if this is not within the agreed terms, the tenant has the right to refuse. For statutory tenants, personal use of the property is included in the specific circumstances set out by rent control law for which the landlord can seek to terminate the tenancy and evict the tenant. This, however, must be done through application to the court and undergoing all relevant legal proceedings, and thus may take years.

Landlords cannot enter the property without the tenant's consent. Landlords often seek to include terms in the tenancy agreement allowing access for inspections or repairs, provided that reasonable notice is given. Entering without consent or notice constitutes a violation of the tenant's legal rights and could potentially constitute a criminal offence.

Yes. There is no restriction on selling property which is rented, except if the has tenant imposed such a restriction as a contractual matter in the tenancy agreement, such as, for instance a right of first refusal or an option to buy. This is rare. If the property is sold, the new owner generally inherits by law the obligations of the existing tenancy agreement, meaning the tenant's rights remain intact under the current lease terms. In order to facilitate a prospective sale of the property, landlords can include a provision in the tenancy agreement that allows the landlord to terminate the agreement in the event of a sale. If such a clause is included and the property is sold, proper notice must be given to the tenant as outlined in the agreement. The tenant must, in any case, be notified of the sale and the change in ownership, (or of the termination if applicable) and rent payments should continue as directed, to the old or new landlord, until the tenancy is legally terminated.

Generally no, but landlords should seek to expressly prohibit this contractually and include provisions in the agreement restricting the subletting of the property by the tenant, unless expressly agreed in writing by the landlord. If the agreement is silent, and the tenant does in fact sublet it can become a considerable issue, especially in any attempt to evict, as there is no contractual relationship between the tenant or the landlord and the sub-tenant.

No. The security deposit is usually held to cover potential damage to the property. It should not be used to substitute rent unless the landlord expressly consents. The landlord should seek to include this as an express term of the tenancy agreement. If the deposit is used as rent, (for instance for the last month of the tenancy), upon receiving the property the landlord may identify damages not readily apparent, or other issues, and they may be in a greatly disadvantageous position or even unable to receive compensation for such damages from the tenant. The most obvious example is unpaid utilities.

The responsibility for common expenses, such as electricity and maintenance fees for shared common areas, is determined by the terms of the tenancy agreement. A landlord can choose to include these costs in the rent or have the tenant pay them separately. It is important to clearly outline this in the tenancy agreement to prevent any misunderstandings and disputes. Legally speaking, the obligation to pay common expenses under applicable law, and building complex regulations, as against the other co-owners of the building complex, namely the administration committee, is always with the concern of the owner.

The tenant is generally responsible for bearing all utilities costs related to the use of the property. Landlords should seek to have the utilities in the tenant’s name, as this ensures the tenant is directly and personally liable for the payments. This is normally a term in the tenancy agreement. Having said that, it could be negotiated and agreed that the utilities remain the landlord’s name. This may be sought by the landlord in a misconstrued sense of control, thinking that they can stop all utilities to indirectly evict any bad tenant. This is not necessarily legal and is not advised, except perhaps if the tenant does not pay the said utilities. In any event, keeping utilities in the landlord’s name creates the added complication that the landlord must produce the utilities invoice, after they accrue (i.e. when received by the provider), and demand payment in addition to rent. This is particularly complicated for the final utilities invoices, issued after termination of the tenancy. Keeping the utilities in the landlord’s name may be advisable when renting commercial properties under a “license to use”.

Legally, no insurance is required (except in the context of building insurance where the landlord is a co-owner in a building complex). However, it is advisable to have insurance for rental property. It can cover damages caused by tenants, loss of rent from unexpected events, and most importantly third-party liability, for instance, where plumbing issues causes damage to adjacent property. If renting the property furnished with appliances, it is advisable to get insurance for contents, as the deposit may not be enough to cover damages, especially if the tenant abruptly vacates the property.

In general, landlords cannot enter the property and install a sign during the tenancy period without the tenant's consent, as it could disrupt the tenant’s enjoyment of the property. However, landlords can include a specific provision in the tenancy agreement that permits the installation of a sign under certain conditions. For example, the agreement might state that if the tenant chooses not to renew the lease and the tenancy is nearing its end, the landlord has the right to put up a "For Rent" sign within a set period before the lease expires, such as 30 to 60 days.

Yes, a landlord can schedule viewings before the current tenancy expires, but this should be clearly stated in the tenancy agreement and, in any event, seek and obtain the tenant’s approval. The agreement should include a provision that allows the landlord to conduct viewings before the lease ends, as long as reasonable notice is given to the current tenant. Typically, 1-2 days’ notice is considered fair. Having this clause in the agreement helps avoid misunderstandings and ensures both parties know what to expect. For purposes of clarity, the tenant must consent and must open the door for such viewings. The landlord cannot simply enter the property for viewings. Doing so could perhaps be deemed as trespass, which is a criminal offence.

Focus on key terms like rent amount, payment terms, responsibility for repairs, notice periods for termination, and what constitutes misuse of the property. Also, address common expenses, subletting conditions, rent increases, and terms for access. Most importantly, pay attention to duration, renewals, and rights of termination upon default.

Yes, landlords can generally set restrictions on the use of the property and impose rules about pets or smoking on the property. You can include these rules in the tenancy agreement. If the property is situated in a co-owned complex, the tenants must additionally adhere to the building regulations. This is the obligation of the landlord, so it is advisable that such obligations, restrictions, and limitation are in turn imposed as contractual obligations on the tenant.

Rental properties are governed by the Contract Law (Cap. 149) and, where applicable, the Rent Control Law (Law No. 23/1983), as amended.