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Top 6 Legal Essentials for Cyprus Real Estate Investors in 2025

Planning to buy property in Cyprus in 2025? Here are the 6 key legal essentials every real estate investor must know to safeguard their investment and ensure a secure property purchase in Cyprus.

1. Title Deeds & Registration

For resale properties, always confirm that the property has a clear title deed, free of mortgages or other encumbrances. This secures your ownership rights and ensures the property can be legally transferred or resold.

Tip: Always request a recent Land Registry Search Certificate from the seller before proceeding. This document reveals any existing mortgages, charges, or court memos registered on the property.

2. Understanding VAT Rules

 First Sale Property – New

• VAT at 19% is payable on the purchase price.
• If the purchaser declares that the property will be used as their main and permanent residence in Cyprus and will not be rented out for at least 10 years, a reduced 5% VAT rate may apply, subject to specific criteria.

A) Transitional Provisions (Law amendment of 16 June 2023):

• The 5% VAT rate applies on the first 200 sq.m. of the buildable area if a duly completed application is submitted within 3 years from 16 June 2023, provided that either:
  i) A planning permit was issued by 31 October 2023, or
  ii) A planning permit application was submitted by that date.

B) New Regime (applications submitted from 1 November 2023 onwards):

• 5% VAT applies on the first 130 sq.m. if the property value does not exceed €350,000.
• If the value is up to €350,000, reduced VAT applies proportionally to the 130–190 sq.m. range.
• If the value is between €350,001–€475,000, reduced VAT applies only up to €350,000, proportionally between 130–190 sq.m.
• If the value exceeds €475,000 or the area is larger than 190 sq.m., the reduced 5% VAT does not apply.

3. Always Check Permits 

Ensure the property has all required planning and building permits, including for any extensions or alterations.

Unapproved structures (e.g., extra rooms, pools, verandas) may lead to legal issues, difficulties in securing bank financing, or even reduced resale value.

Always request a copy of the planning permit, building permit, and final approval certificate before signing any contract.

Example: A client once approached us during due diligence for their property purchase. It was not immediately obvious, but our checks revealed that the seller had carried out an illegal extension without a permit. This issue could have created future legal complications. Because we identified it early, the client avoided a risky purchase and was able to renegotiate terms.

4. Legal Representation

A lawyer is essential to protect your interests. They strengthen your negotiating position, identify potential risks, and ensure that contracts and ownership rights are secure before you commit.

5. Specific Performance Law

Register the Contract of Sale at the Land Registry within 6 months. This prevents the seller from transferring or mortgaging the property elsewhere and gives you the right to enforce the sale in court if necessary.

6. VAT on Resale Properties

Always check whether VAT applies to a resale property.

Tip: If the property has been connected to electricity for more than 5 years, this usually proves that no VAT is payable.

How We Can Help

At Andreas Demetriades & Co LLC, our Cyprus law firm provides expert legal guidance for real estate investors, ensuring every property purchase is safe, compliant, and fully protected under Cyprus law.

Get in touch with our lawyers using the form below!