Cyprus is increasingly favored by those seeking a new home, attracted by its sunny climate, rich culture, and beautiful beaches, alongside its strong economy and safe environment, making it an ideal choice for both business and relocating families.

The legal framework governing property acquisition in Cyprus is established by the Immovable Property (Tenure, Registration, and Valuation) Law, Cap.224. This legislation oversees the property registration process, with EEA and EU nationals, as well as legal entities incorporated in Cyprus or any EU member state, facing no purchasing restrictions.

Non-EU individuals also have the opportunity to own property in Cyprus, provided they obtain consent from the Council of Ministers and fulfill the requirements outlined in a purchase agreement.

Purchasers typically bear some costs, find listed below some associated expenses.

Stamp duties are levied on all property purchase agreements and can be settled at any District Inland Revenue Department. Properties sold for less than €5,000 are exempt from stamp duty. For transactions valued up to €170,860, stamp duties are assessed at a rate of 0.15% of the purchase amount. Transactions exceeding €170,860 incur stamp duties at a rate of 0.20% of the purchase price.

Transfer fees are remitted by the buyer directly to the District Land Registry Office upon the transfer of the property's title deed to the buyer's name. These fees are determined according to the market value assessed by the Land Registry, rather than the purchase price. Transfer fees are exempted in cases where the property purchase includes VAT, but they may still be applicable if the purchase price falls below the property's assessed value.

The property value in euro is calculated as follows.

valued at up to €85,000 3%

Above €85,000 and up to €170,000 5%

Above €170,000 8%

Value Added Tax (VAT) in Cyprus is currently set at 19%. VAT is typically imposed on newly constructed residential properties, commercial properties, and undeveloped land without buildings, with potential exceptions.

Conducting thorough Due Diligence is paramount prior to any property acquisition.

It is imperative to ascertain the absence of encumbrances on the property, verify the status of its title deed, and confirm compliance with pertinent planning regulations and building permits.

The presence of burdens on the property or instances of non-compliance may impede the issuance and transfer of the respective title deed. Additionally, performing due diligence on the seller is of utmost importance.

Please note that this guide is not intended as legal counsel, as it may be subject to modifications in accordance with changes in laws and regulations, including enactments and amendments.