The buying process

The Republic of Cyprus became a member of the European Union on May 1st, 2004. According to the provisions of Protocol 10 of the EU Accession Treaty the entire territory of the Republic of Cyprus, including the areas that have been under military occupation by Turkey since 1974, became part of the EU. However, the Turkish occupied area in the northern part of Cyprus is an integral part of the sovereign territory of the Republic of Cyprus. The application of the EU rules and regulations [the acquis communitaire] is suspended in the occupied areas, as the Government of the Republic of Cyprus does not exercise effective control in those areas.

It is re-assuring for many UK buyers that the legal system in Cyprus, including the Land Registry, is based on the English one. Be sure you engage the services of a reputable, independent solicitor. It is important that this solicitor, to be truly independent, is not one recommended to you by a developer or estate agent, so do not be pressured to use their recommendations. Also be sure to check their costs.

On finding a property you wish to purchase, you will be asked to pay a reservation fee (a deposit) of between CYP 1,000 and CYP 2,000. Be sure you are going to buy before you pay the reservation fee as it may be non refundable. The seller draws up a contract, and on signing it, the remainder of the deposit (8% for a resale property or between 18% and 38% for a new build) becomes payable within an agreed period, usually a month. Some sellers are flexible about this.

Transfer of ownership is then formulised through the Cyprus Land Registry Office. You can do this yourself, but it is advisable that a solicitor is used.

Be sure that your contract is deposited at the Registry within two months days of signing the contract. This is for your protection and is called “specific performance.” Essentially it means, that the owner is prevented from transferring the property elsewhere or changing the contract, for as long as the contract is valid and legally effective. It gives you the right to seek “specific performance” of the terms and conditions of the contract and thus to register the property onto the purchaser’s name, even though the owner may change his mind about the purchase.

What if I buy and I already live in Cyprus?

Cypriots or persons of Cypriot origin as well as EU citizens who have their permanent residence in Cyprus are allowed to acquire property (legal term is immovable property) without any restrictions at all in terms of numbers or size.

You have to reside in Cyprus for a total period of at least 185 days a year to qualify, and the District Office is the deciding authority here.

What happens with non resident EU citizens and non EU residents?

EU citizens who are not permanent residents of Cyprus, and non EU residents wishing to buy have to follow set procedures and are restricted in certain ways. These restrictions will lift for these EU citizens after 2009.

Neither category can buy more than one apartment or one house or a building plot or land. In the case of EU citizens the property size can be unlimited and in the case of non EU citizens it can be up to 4,014 square meters.