There is a very wide range of legislation which is relevant to property transactions and related matters. 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.

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, protects your rights, and further allows the buyer to deposit the contract at the Land Registry for specific performance, namely, to enforce its terms. 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 is stages a buyer must 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. If parties opt for a signed agreement, the buyer must pay stamp duty.

Land is legally bought through a transfer process in the Land Registry. As a buyer, you need to present identification (ID or passport), proof of payment for transfer fees, if applicable (paid on the date of the transfer) and a duly stamped copy of the contract of sale (if one exists). If the buyer is a foreigner, they will also require relevant approval from the District Officer pursuant to relevant laws on foreigners buying property. If the buyer is a company or any other legal entity, they will need copies of all corporate documents, such as certificate of incorporation and certificate of directors and secretary of the company from the Registrar of Companies. If the buyer 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. The seller will also need to present a number of documents, including tax and other clearances.

Yes. Currently, land transfers in Cyprus cannot be completed online. Both parties (or their representatives) must physically visit the Land Registry. The buyer or the seller can alternatively appoint a representative through a properly certified power of attorney. However, the 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 prima facie check, and if they are satisfied, they will set a date of 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 on the name of the buyer.

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 and this is further 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 a mortgage or encumbrance is identified during the due diligence stage, it is critical that it is duly addressed in the contract of sale and specifically that a terms is included for the seller 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 if sale.

Yes, VAT applies on the purchase of land unless an exemption applies. It is borne by the seller 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 built 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 the land was sold with VAT, then no transfer fees apply. If the sale of the land was exempted from VAT, on account of official VAT authority exemption 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. For more information see the dedicated FAQs topic of 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 of 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 calculation, including from the official website of the Land Registry and several estate agents. The market value of the land may follow the declared purchase price of the sale and purchase 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 of 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 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 of transfer fees.

Stamp duty will apply if there is a written contract of sale for the sale of land. 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 maximum of €20,000. There are several online calculators to assist with the calculation including the official tax authority website. Its 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 is beneficial to the buyer, as it creates an encumbrance on the land, duly recorded by the Land Registry and it further permits for specific performance. In other words, the seller cannot re-sell or otherwise dispose 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. This is especially beneficial in cases where one or more advance payments were made, upon signing the contract of sale, and the completion of the transfer process is pending tax and other clearances to be secured by the seller.

Land without a separate title deed cannot be legally transferred. For example, you cannot buy 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 acquire certain contractual rights over land without title deeds, including the right to use or option to buy, once duly divided.

No. Only if the part has a distinct title deed or has been legally sub-divided can a buyer legally buy and obtain title of a specific part of land. A buyer can buy 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 on the land, own a share of all the land and not any specific area.

Yes, non-EU nationals can buy land in Cyprus provided they apply and secure written consent from the District Officer, in accordance with applicable law, before the transfer can proceed.

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 commercial agreed terms such as the purchase price, payment terms and timeframe of 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.

A buyer, through his lawyers and representatives, must conduct due diligence before buying or even committing to buy land. Due diligence ensures the land is free from legal issues such as mortgages, encumbrances, zoning restrictions and other issues and generally that it is suitable for the intended purpose. It protects the buyer from unexpected legal or financial complications after the purchase. For more information see the dedicated FAQs topic on Due Diligence.

Generally speaking you should at least obtain and review the title deed to verify ownership and the characteristics of the land. If there is no title deed, the contract of sale. You should also ask for a Land Registry search to determine if there are mortgages and other encumbrances. Furthermore you should conduct a search on the Land Registry Portal to verify the information on the title deed and determine the zoning and other characteristics of the property. This is especially important if the land is intended for development, to determine whether it is suitable. Lastly you should perform a physical inspection. Ideally a buyer you should seek and obtain expert reports such as land surveys for land, valuations by chartered surveyors, and an architect reports on permitted developments, namely what can be built on the land, how tall, how many floors, permitted areas etc.

Yes, always. Physical inspections reveal issues like incorrect physical boundaries, environmental nuisances, or land features that may not appear in documents such as high inclination or other terrain issues. Ideally the inspection should be carried by a professional such as a land surveyor who can also produce a report.

No the buyer of land does not pay any direct tax on the purchase of land, except V.A.T.. Even so, V.A.T. is paid to the seller, in addition to the purchase price, who in turn must register with VAT authorities and pay it to them. When selling land, it is the seller you must pay taxes, including capital gains tax at 20%, property taxes, municipal tax, water and sewerage dues etc.

Presently the new title deed is issued on the spot on the date of the transfer. It can be the case that the Land Registry is unable to do so, depending on their workload, so it may take a few days.

Yes, but this must be explicitly 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 safeguards their advance payment. The seller uses the advance payment to settle all taxes and secure all clearances to complete the transaction.

If there are encumbrances, like mortgages or liens, which are lodged in the Land Registry the land cannot be transferred. They must be cleared by the beneficiary, for example the bank, before or simultaneously with the transfer from the seller to the buyer. Where a buyer identifies mortgage or encumbrances in the due diligence exercise they should not conclude an agreement and certainly not make any substantial payments for the purchase of the land unless the seller ensures, and they independently verify, the beneficiary of the mortgage is prepared to lift it, thus permitting the sale. This is customarily done by securing a written legally binding “bank waiver” namely an undertaking for the bank that they are prepared to remove the mortgage upon receiving the outstanding amount. Such waivers are now legally mandatory and take a specific format under law and accompany the contract of sale. Typically this translates that part of the payment is made directly to the bank OR to a designated bank account of the seller.