Cyprus Real Estate Law 2024

Cyprus Real Estate Law 2024: What Buyers and Sellers Need to Know

David and Lisa, a couple from Tel Aviv, were excited about their decision to purchase a summer home in Limassol. Drawn by the allure of Cyprus’ Mediterranean charm and favorable investment climate, they quickly started their property search. 

However, they soon realized that navigating the legal landscape of Cyprus real estate required more than just enthusiasm. Understanding the intricacies of Cyprus real estate law is crucial for any investor, especially those from Israel and Europe looking to relocate. 

Here’s a comprehensive guide to what buyers and sellers need to know about Cyprus real estate law in 2024.

Key Legal Aspects of Cyprus Real Estate in 2024

1. Title Deeds and Registration

A Title Deed is a document officially issued by the Department of Lands and Surveys which verifies not only the Registered Owner(s) of a property but its details and characteristics as well. 

The title deed is a critical document in any real estate transaction as it establishes legal ownership and ensures that the property can be legally transferred, mortgaged, or sold.

 It is important to note that while the registered owner is the undisputed owner of the land, the title deeds must be meticulously checked to ensure that the property is free of any encumbrances e.g. mortgage, memo, or any personal prohibitions against the registered owner or  are any other notes, or commitments, or restrictions.

2. Amendments to VAT Laws

Recent changes to the VAT laws have significant implications for new build property transactions.

The amended law stipulates that the reduced VAT rate of 5% applies only to the first 130 m² of buildable residential area of a property and up to a maximum value of €350,000, provided that the total buildable residential area does not exceed 190 m² and the total value of the transaction does not exceed €475,000.

3. Specific Performance Law

The Sale of Immovable Property (Specific Performance) Law of 2011 sets out the remedy of specific performance for Purchasers depositing a duly stamped copy of the Contract of Sale at the Department of Lands and Surveys within six months from the date of its execution.  This registration of the Contract of Sale prevents the Vendor from transferring the property elsewhere or encumbering it for as long as the Contract is valid and legally effective.  

Should the Vendor fail to transfer the property pursuant to the Contract of Sale, the Purchaser may obtain from the Court a specific performance order enforcing the transfer of the property in his name.

4. Environmental and Planning Regulations

New regulations emphasize environmental sustainability in real estate development. Amendments to the Town and Country Planning Law require comprehensive Environmental Impact Assessments (EIAs) for new projects and stricter zoning requirements, ensuring that developments are environmentally sound and aligned with local needs​​.

How Andreas Demetriades & Co LLC Can Assist

At Andreas Demetriades & Co LLC, we specialize in providing legal services to property investors from Israel and Europe. Our team can help you navigate the complexities of Cyprus real estate law, from conducting due diligence on title deeds to ensuring compliance with the latest VAT and planning regulations. We are committed to protecting your investment and providing peace of mind throughout your property transaction.

Final Thoughts

Understanding Cyprus’ real estate laws is essential for making informed investment decisions. By staying abreast of the latest legal requirements and seeking professional advice, you can ensure a smooth and secure property transaction. 

Are you ready to explore the opportunities in the Cyprus real estate market? Get in touch with one of our lawyers today.

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