Renting Property
Simple answers to the most frequently asked questions regarding renting property in Cyprus.
Yes, an agreement for renting a property for a year or more is invalid unless it is in writing, duly signed by the parties and also signed by two witnesses. This stems from an anachronistic provision of contract law and possibly electronic signatures can be interpreted to suffice but to err on the side of caution, tenancy agreement should ideally be signed on tangible paper with wet ink in the presence of two witnesses. Furthermore, obviously, a written agreement is also practically and legally advisable as it formalizes the terms, rights, and responsibilities of both the landlord and tenant, it offers clarity on the tenancy terms and overall reduces the risk of disputes.
If the agreement is void or you do not have a written agreement, just a verbal one, and you have possession of the property you are deemed as a tenant on a month -to-month basis, by operation of applicable law, and the tenancy is subject to termination by notice, typically one month.
Yes, the tenancy agreement can be negotiated like any other agreement. Landlords and their lawyers, or real estate brokers may introduce a draft which is somewhat standard but tenants, and their respective lawyers and representatives, must review and where appropriate negotiate both commercial and legal aspects of tenancy agreements. Having said that, certain aspects of tenancy arrangements are imposed by law and thus are non-negotiable such as for instance whether VAT applies on the rent.
Absolutely. Tenancy agreements, even proposed drafts appearing as standard, may have substantial and burdensome obligations on the tenant, which may in fact not be standard, and which may not be readily apparent by laymen on reading the document. Having an experience and knowledgeable lawyer is advisable to ensure all terms are fair, clear, and comply with applicable laws and prevailing optimal practices, especially if it’s a commercial or long-term lease or otherwise where a lease involves substantial commitments on the tenant’s end. Real estate brokers are knowledgeable professionals for real estate transactions, but it is not within their scope or professional duty to draft or negotiate agreements, especially on behalf of the tenant, as they are the “agent” of the landlord and their commission or fees is predicated only on concluding the transaction irrespective of the underlying terms.
Typically, and legally, the landlord pays the real estate agent fees. Having said that the parties are free to negotiate and exceptionally agree, that the tenant will pay the real estate agent fees.
As a rule of thumb, VAT does not apply on residential tenancies, namely where the property will be used as a residence for habitation, irrespective of whether the landlord is a natural person, or a legal person, namely a company. VAT will apply in commercial tenancies, namely where the property is used for a business, like a shop or offices. This again is irrespective of whether the landlord is a person or a company. Having said that there are some exceptions where VAT may not apply such as for instance where the landlord is renting an inherited property, one-off, and is not deemed to be person conducting business subject to registration with VAT. For such an exception, the landlord must apply and secure an official written ruling from the VAT authorities.
No taxes are payable by the tenant for renting property. Unless agreed otherwise, the tenant is generally responsible for utilities (water, electricity, internet, telephone) and other dues (such as municipality garbage collection fees) related to the use, but not ownership of the property. It is the landlord who is responsible to pay and discharge all taxes, duties, charges, fees, levies and burdens relating to the ownership of the property such as property taxes. Where the tenant is a legal person, namely a company, it may be legally responsible to deduct certain taxes and dues from the rent and pay them to the authorities on behalf of the landlord, namely special defence contributions and general health system contributions, imposed by law as a percentage of the gross rent.
A tenant who is a company must deduct from the gross rent certain tax and dues payable by the landlord and pay them directly to the authorities. Specifically, the tenant company must withhold Special Defence Contribution (SDC) at a rate of 3% on 75% of the gross rental amount, effectively 2.25% of the total rent. Additionally, the tenant company must withhold General Health System contributions at a rate of 2.65% on the gross rental income. The withheld SDC and GHS contributions should be paid to the authorities by the end of the month following the month in which the rent was paid. An official report in the prescribed format must be sent to the landlord for all such deductions. The above deductions may not apply where the landlord is not a Cyprus tax resident or where the landlord is a qualified non-domiciled for tax purposes. The tenant company should seek personalised professional advise in such cases.
The landlord is typically and legally responsible for maintenance and repairs necessary to keep the property habitable and in good condition arising from reasonable wear and tear. This includes repairs on issues such plumbing, structural repairs, water insulation of the roof and water damages from lack thereof, electrical circuits, heating ventilation and air-conditioning, and generally, as a rule of thumb anything that is an integral part of the structure of the property. Where the property is furnished with appliances, the landlord may, unless agreed otherwise, also be responsible for repairs of such furniture and appliances. Having said that the landlord, typically and legally, is not responsible, for damages or repairs, caused by the misuse of the property or any aspect of it by the tenant (or their guests). Liability on such issues is customarily covered in the terms of the tenancy agreement.
A statutory tenant is a tenant who continues to occupy a property after the expiration or lawful termination of the initial tenancy agreement, provided that the property is in certain “controlled areas”, the property was constructed prior to 31 December 1999 and that the tenant is a Cyprus or an EU citizen. Following a relatively recent landmark court decision it is also a requirement that the property was rented (or was available for rent) on the 31 December 1999. This latter requirement has effectively limited the scope and effect of rent control laws, and the corresponding benefit to tenants, especially on account of evidentiary and factual difficulties in establishing whether the property was rented two or more decades ago.
Irrespective of whether the tenancy agreement expired or any provisions of a valid tenancy agreement to the contrary, statutory tenants cannot be evicted except under certain specific circumstances prescribed by rent control law, such as persistent non-payment of rent, the landlord's need to use the property for personal or family use, nuisance, or plans to demolish or substantially alter the property. In some cases, namely for commercial rents, if a tenant is evicted, they will be entitled to compensation of at least 18 months rent or more reflecting the loss of goodwill, if it can be proven. Similarly, irrespective of any relevant provision in the tenancy agreement, landlords cannot increase the rent of statutory tenants, except as expressly permitted by rent control law. Specifically rent cannot be increased if two years have not lapsed since the last increase and the percentage increase cannot be more than what is prescribed by law. The percentage changes by decision of the council of ministers every two years. Until the 21st of April 2025 it is 6%. Alternatively, the landlord can apply for rent adjustment and seek to claim rent up to 90% of the market rate for rentals of equivalent property in the small radius. In any event all such applications by landlords, whether for eviction or rent increase, must be made by application to specialized court named rent control court and the process of seeking and obtaining a court order is by itself a very lengthy, costly and burdensome process.
It depends. The matter of rent increase is governed by the terms of the tenancy agreement. The landlord cannot arbitrarily decide to increase the rent. Typically, the agreement will state the rent is increased every two years by a percentage amount. IT varies from time to time but generally speaking it can range from 3-9%. If the agreement is silent or the increase period has not lapsed a landlord can also invoke expiry of the term of the tenancy or termination by notice in order to raise the issue and seek to impose an increase, typically in a new tenancy agreement. The tenant can theoretically negotiate or even refuse at the risk of legal action against them for eviction. If the tenant is a statutory tenant, the landlord cannot increase the rent except as strictly provided in specific legislation, called rent control law, and subject to the landlord applying to a special court, for a relevant court order. Increases are permitted every two years and are limited to an amount specified by the said law. Alternatively, landlords can apply to court for fair rent, namely 90% of the prevailing rent market rate for equivalent properties in the small area. Any such court proceedings are lengthy, costly, and burdensome giving the tenant significant leverage to negotiate or outright refuse rent increases so this must be factored in any possible negotiations.
The landlord cannot enter the property and reclaim possession upon expiry or termination of the tenancy agreement unless the tenant vacates voluntarily or unless the follow the requisite legal process to apply to the relevant court, seek and obtain a court order for the tenant to vacate the property. If the landlord enters the property and seeks to regain possession, while the tenant still has possession, without a valid court order they are acting illegally, possibly committing a criminal offence. The landlord can generally evict tenants in case of expiry or lawful termination of the tenancy agreement or upon default by the tenant on the terms of the tenancy agreement such as non-payment of rent. In case of statutory tenancy, the landlord can only evict the tenant for certain specific circumstances prescribed by rent control law, such as persistent non-payment of rent, the landlord's need to use the property for personal or family use, nuisance, or plans to demolish or substantially alter the property
Yes. If the tenancy agreement specifies a fixed term, you must vacate upon expiry unless the landlord agrees to renew or extend the lease. Having said that, if a tenant does not vacate the property upon expiry, the termination of the tenancy agreement can be enforced in court and the tenant may be liable for compensation and other damages to the landlord. However, this does not necessarily give the landlord the immediate right to enter the property and take possession of the property upon expiry of the tenancy agreement. The landlord must apply to the court and seek a court order of eviction of the tenant based on trespass and other proper cause of action. If the tenant is a statutory tenant, they do not need to vacate the property upon expiry of the tenancy agreement, as the tenancy continues as a statutory tenancy by operation of the rent control laws.
The landlord cannot legally enter their property at their discretion while a tenant has and maintains possession of the property. The landlord generally has the right to enter the property for inspections, with the approval and consent of the tenant (namely the tenant must open the door and allow them to enter) typically as long as they provide the tenant with reasonable prior notice. This is frequently included as a term of the tenancy agreement.
If the landlord sells the property during your tenancy, the new owner takes over the rights and obligations of the original landlord. You will continue to have the same rights under the existing tenancy agreement, and the terms of the lease remain unchanged. The new owner cannot evict you or alter the rent unless legally permitted, and they must honor the duration and conditions of your current lease. The tenant should be notified of the change in ownership. Once notified and legally satisfied of the new ownership status of the property a tenant must continue to pay rent to the new owners. Typically, there will be a provision on the tenancy agreement that governs this issue namely stating that the terms of the tenancy agreement will apply to successors of the landlord.
This is a matter that can be negotiated and agreed. It ultimately depends on the terms on the final tenancy agreement. In most tenancy agreements the tenant is not allowed to sublet the possession of the property without the previous written consent of the landlord. If the tenancy agreement is silent only a court can decide whether subletting is legal based on the specific facts and circumstances. In cases of statutory tenancy, unreasonably subletting the property is one of the grounds which permits eviction by the landlord.
This is a matter that can be negotiated and agreed, either upon entering or upon expiry or termination of the tenancy agreement. The deposit is typically held by the landlord to cover possible damages to the property, made evident upon or after the tenant has vacated possession of the property. The landlord will thus typically impose provisions in the tenancy agreement that the deposit should not be used as a substitute for rent payments except with the prior written consent of the landlord. In practice the matter is raised by the tenant, upon giving notice of termination, asking for consent from the landlord for the deposit to be used as the last month’s rent provided the landlord has inspected the property beforehand and ensured there are no material damages. If the tenant vacates without paying the last rent, without the consent of the landlord, waiving the right to return the deposit, they may still be liable for damages for breach of contract, if and to the extend such damages can be quantified.
No, tenants cannot unilaterally deduct the cost of repairs from rent unless explicitly stated in the tenancy agreement or the landlord has given expressed written consent. If the landlord fails to make necessary repairs, the tenant should first notify the landlord in writing and allow a reasonable period for repairs to be made. If the landlord does not address the issue, the tenant may undertake the repairs themselves and consequently commence legal action, for compensation providing evidence of all costs of repairs, rather than deducting repair costs from the rent. Deducting cost of repairs from rent, although logical and practical, may give the landlord legal grounds to seek eviction of the tenant, namely on the ground non-payment of rent, especially if the landlord challenges the need for repairs or repair cost amount.
It is negotiable. Common expenses are relevant in case you are renting a property which is a unit situated in an apartment or other building complex, and which has common areas with other units in the same complex such as gardens, elevator, pool, corridors, roof etc. These are commonly electricity bills, gardener’s fees, maintenance and other management fees paid by the administration committee of the co-owners of the building and then subsequently billed or imposed on each unit owner, proportionately to the area of their property against the total area. In some cases, landlords pay it themselves and include it in the rent and in other case they demand the tenants pay it directly to the property administrators. There is no correct way. As a tenant, you should seek those common expenses be included in the agreed rent, especially if there is a provisional payment for a common fund for maintenance of the building which is the responsibility of the landlord and not the tenant.
Typically, the utilities are in the name of the tenant who is responsible to pay or ultimately bear the cost of such utilities. In most cases there will be a provision of the tenancy agreement which requires the tenant to imminently transfer the utilities, such as water and electricity in their name. Having said that, it is possible, that the parties negotiate and agree that the utilities remain in the name of the landlord. Tenants should seek to have the utilities in the name. For one, it serves as proof or residence often requested by banks, tax and other authorities. For the other, it ensures that in the event of a dispute, the landlord does not have the power to illegally stop the utilities while they are in possession of the property, in an effort to indirectly evict them. If for any reason the parties agree that utilities remain in the name of the landlord, the tenant must pay the utilities to the landlord, over and above rent, upon receiving the relevant consumption bill of the preceding month.
Typically, they will ask for the duly signed tenancy agreement and identification of the tenant. If the owner of the property is not in their record, they may ask for the title deed or contract of sale of the property, to validate who is the landlord. They often ask for settlement of previous bills, before they transfer of the name, irrespective of the fact that the tenant has nothing to do with the bills of the landlord or previous tenants. Finally, they ask for a deposit.
While it is not always legally required, it is highly recommended for tenants to have a tenant insurance especially if they have valuables. Tenant insurance can protect personal belongings from damage or theft, and it may cover liability in case of accidents within the rental property.
In general, the tenant cannot display a sign on the exterior of the property without the landlord's prior written consent. If the landlord agrees, the sign must comply with all applicable laws and regulations including the co-ownership regulations if it’s a building complex.
No, unless a previous written consent of the landlord is obtained. This is often an expressed term in the tenancy agreement. If you do, you have to restore the property to its previous condition.
The key commercial terms to be negotiated and included in a tenancy agreement are the rent amount, rent payment frequency, the method of payment, whether VAT is included, rent increase periods and the percentage or fixed amount of rent increase. If there are common expenses, the agreement should stipulate who will bear them. Additionally, the tenancy agreement must clearly state the commencement date, the durations of the tenancy and terms of renewal, including notice periods. Furthermore, the agreement must state the amount of the deposit, conditions for its return, and any deductions that may be made. The agreement must also clarify who is responsible for utilities and other cost, who is responsible for taxes, who is responsible for repairs and maintenance and generally what is the responsibility and obligations of each party concerning the property, and specifically any limitations on the tenant. Finally, the tenancy agreement must have clear provisions as to termination, including notice periods, and consequences upon default. The aforementioned are indicative and not exhaustive. Each tenancy must be negotiated on its specific facts and circumstances and agreements must be drafted and reviewed by experienced lawyers.
The Rent Control Law (Law No. 23/1983) as amended, and Contract Law (Cap. 149) as amended.
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