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 and protects your rights. 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 in stages, a buyer may 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. A signed contract of sale, if properly stamped by the buyer, allows the buyer to deposit the contract at the Land Registry for specific performance, namely, to enforce its terms. This creates an encumbrance of the land; thus seller should generally not sign and deliver contracts of sale, unless a significant amount was paid to them upon signing.

Land is legally sold through a transfer process in the Land Registry. As a seller, you need to present identification (ID or passport), the relevant transfer form signed by the seller and buyer, proof of payment of capital gains taxes in the appropriate format, proof of payment of property taxes to the municipality, proof of payment of sewerage and refuse fees, and all other dues related to the ownership of the land. The buyer will also need to produce and furnish documents from their end, such as identification (ID or passport), proof of payment of transfer fees, if applicable (paid on the date of the transfer), and a duly stamped copy of the contract of sale (if one exists), District Officer approval, if the buyer is a foreigner, and copies of all corporate documents, if the buyer is a company. If the seller is acting through a representative, they need to also have a duly signed power of attorney, duly certified by a certifying officer or otherwise legalized, if signed abroad.

Yes. Currently, land transfers in Cyprus cannot be completed online. Both parties (or their representatives) must physically visit the Land Registry. The seller or the buyer can alternatively appoint a representative through a valid power of attorney. The said 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 land, 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 land in 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, 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. The process may slightly vary by district.

If the land 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. This is typically a commercial term of sale of the land, 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 the land is mortgaged or encumbered, it is critical that the seller communicates and coordinates with the beneficiary bank or other person in order 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.

Unless specifically agreed otherwise, it is the seller who pays the real estate agent. A minimum fee of 3% will apply, irrespective of whether there is an agreement. Typically, it can be 5%-10%. The parties are free to negotiate and agree on final terms, including the amount of commission and payment terms. VAT applies on the commission amount. Commission is not due unless the transaction is complete. If paid in instalments, typically parties agree to pay the commission upon a 30% payment of the purchase price. For more information see the dedicated FAQs topic on Real Estate Agents.

Yes, VAT applies on the sale of land unless an exemption applies. It is borne by the buyer and is typically 19% on the agreed purchase price. Generally speaking, VAT applies to all undeveloped land intended, or suitable, for development in the context of business activity. In some cases, where it is deemed by the VAT authorities that the sale does not fall under commercial activity, the sale may be exempted. This is for instance when family-owned land is sold one-off to a couple to build their home. For the exemption to apply, the seller must apply to the VAT authorities and secure a formal ruling on their specific circumstances. If the land has a house or other building erected inside, appearing on the description of the title deed, no VAT will apply. In any event, if VAT applies, then no Land Registry transfer fees will apply. If VAT applies the seller collects the VAT as part of the purchase price and subsequently must register (if not already registered) with VAT and pay it to the authorities.

If the land was sold with VAT, then no transfer fees apply. If the sale of the land was exempted from VAT, on account of an official VAT authority ruling or otherwise, then transfer fees will apply. Other exemptions on transfer fees may be available for family transfers, group transactions, or under specific government schemes. In any event, transfer fees are paid by the buyer. 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 land'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 from the official website of the Land Registry and several real estate agents’ websites. The market value of the land may follow the declared purchase price of the land, but the Land Registry is free to make their own determination of market value, which may differ. 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 of land. Unless agreed otherwise, it is paid by the buyer. 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 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. 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 land, duly stamped, and lodging it with the Land Registry creates an encumbrance on the land, duly recorded by the Land Registry, and it further permits specific performance. In other words, the seller cannot re-sell, mortgage, or otherwise dispose of the land, and the buyer, if they deem so, may apply in court to enforce the terms of the contract of sale, namely force the owner to accept the agreed purchase price and transfer the property to the buyer. Permitting the creation of such an encumbrance is detrimental to the seller in cases where the buyer fails or is unable to proceed with payment of the outstanding amount of the purchase price, in accordance with the terms of the contract, in order to complete the transaction. The seller cannot mortgage, resell, or otherwise utilize their land unless they reach a settlement or arrangement with the buyer to withdraw the contract of sale. Alternatively, they must undergo lengthy and taxing litigation proceedings.

Land without a separate title deed cannot be legally transferred. For example, you cannot sell a specific area within a larger plot or field of land. To do so, the owner must legally undertake the process of sub-division before a buyer can legally buy and obtain the land in their name. Having said that, you can freely enter into an agreement to sell, licence, or otherwise dispose of certain contractual rights over land without title deeds, including the right to use or option to buy, once duly divided.

Yes, an owner of land can sell a share or "portion" of the land, for example, 1/3 (one third), but this is an indivisible share, meaning joint ownership with others. However, an owner of an indivisible share of land, for example, 1/3 (one third), cannot sell their share unless they first offer it to the other co-owners. There is a mandatory pre-emption right to co-owners of land by operation of law.

No. Only if the part has a distinct title deed or has been legally subdivided can a seller sell and a buyer obtain title of a specific part of land. A seller can sell a portion of the land, 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 in the land, own a share of all the land and not any specific area. In other words, to achieve the desired result, you can sell a portion of land, for example, and simultaneously enter into a separate agreement on which specific parts are allocated to which co-owner.

Yes, non-EU nationals who legally obtained land in Cyprus by written consent from the District Officer, in accordance with applicable law, can freely sell their land.

A reservation agreement is a preliminary contract where the seller agrees not to sell the land 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 commercially 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 land 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. For the seller, retaining the deposit reflects the opportunity cost of having the property out of the market for the reservation period.

Yes. When selling land, the owner must generally pay 20% capital gains tax. If the seller is a company, customarily dealing in land as part of its activities, then they will probably pay corporate tax at 12.5%. If the said company later distributes dividends to its Cyprus tax resident owner, they will have to pay 17% special contribution for defence and 2.65% GESY contribution on the amount of dividends declared. If a seller is a natural person who systematically and/or professionally deals in land, as a commercial matter, including buying and selling properties, the tax authorities may deem them as a “dealer in land” in which case income tax shall apply at the highest level, namely 35% on the sale price, plus 2.65% General Health System contributions. In addition to transaction specific taxes, as aforementioned, a seller of land must pay, up to the date of the transfer, annual property taxes, municipal tax, water and sewerage dues and of course all utilities and other bills outstanding. Exemptions may apply, so specific tax advice must be sought.

Capital gains tax is 20% on the net profit from the sale. The net profit is calculated as the sale price minus the acquisition cost, minus permitted deductions. The acquisition cost is adjusted for inflation based on the Cyprus Consumer Price Index (CPI). Permitted deductions include transfer fees and stamp duty, capital improvement (such as cost of renovation, extension or maintenance, if it can be supported by relevant invoices) and professional fees related to the acquisition, such as lawyers, chartered valuers and real estate agents. There is a lifetime deductible allowance which varies depending on the nature of the sale, ranging from approx. €17,000 for any sale to €85,000, for sale of a primary residence. The final determination of the amount is made by the tax authorities.

Yes, but this must be explicitly agreed, and it must be stated in a written sales contract. Payment terms should be agreed upon before signing the contract of sale. This is typically the case where a seller of land 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 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 uses the advance payment to settle all taxes and secure all clearances to complete the transaction.

No, unless it is below €10,000. Recent anti-money laundering legislation prohibits real estate transactions to be made in cash, in an amount above the aforementioned, with very severe consequences to those in breach including fines and imprisonment.

There is a very wide range of legislation which is relevant to the sale of land, 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)/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.