Selling your property in Cyprus

Cyprus real estate sales can be complicated, but they can be simplified with preparation and the right individuals. All the information you require to efficiently manage your affairs is contained in this guide.
Get in touch with us if you want to sell your Cyprus real estate. Since 2010, we have been assessing and selling real estate.

Experts you require

A lawyer and a real estate agent are the experts you need to sell your house. Finding a trained valuer who can offer advice on the property's asking price may also be something you want to do.

The real estate broker

The Cyprus real estate agent needs to be properly registered in the Cyprus Republic. Additionally, it is preferable if they have a solid track record of selling real estate.
You should get in touch with a real estate agent. To locate a buyer for your property, you don't need a real estate agent. However, because they are familiar with the market, real estate brokers will assist with marketing, promoting, and meeting with possible purchasers. All Cyprus real estate brokers understand English and are familiar with the entire island.
What legal rights and obligations do real estate agents have?
The legislation in Cyprus grants real estate agents some rights and responsibilities.
The real estate agent needs to have an annual license and be registered with the Nicosia Real Estate Agents Council.
• The office name, the phrase "licensed real estate agent," and their registration number must be displayed on the exterior of their building. Both the annual license and the certificate of registration must be displayed in the office in a visible location.
• The buyer must be informed of the property's physical state and any outstanding fees the real estate agent is aware of. Even if the real estate agent represents the seller, the obligation remains the same.
• Able to offer an assessment of the property's worth.
• Has the right to be paid. If the property is sold, the seller is responsible for paying the real estate agent's commission.
• If the buyer has an interest in the land, they must be informed. Written notification is required.
• It may be a business (a "legal person").
• Needs to uphold the profession's norms and behave honorably.

Real Estate Agents Law No. 273(I) of 2004 and its modification No. 118(I) of 2007 are pertinent laws.

The attorney

The attorney defends your rights and advances your interests when selling your home. Additionally, they will clarify any paperwork you might be required to sign.
The lawyer can respond to a wide range of inquiries. The pertinent legislation, procedures, and taxes will be covered. Additionally, the attorney ensures that everything is carried out in compliance with the law. They will assist you in comprehending the agreement and steering clear of troublesome duties. The attorney will make sure your rights are upheld in the event that the arrangement is not successful.

Do I require legal counsel? Is selling my property "DIY" (on my own) not preferable?

Strictly speaking, having legal counsel is not required when selling real estate.
However, every selling process has its challenges. It can be challenging to write a solid contract and negotiate the conditions. It takes experience to file the right paperwork. Therefore, it is strongly advised that you hire a lawyer or law company.

Due diligence?

There is little that you or your lawyer can do to verify the buyer's financial stability due to the protection of personal data.
If the buyer is a business, the attorney might check the Registrar of Companies to make sure the business isn't insolvent.
The use of due diligence and anti-money laundering (AML)
Your lawyer may find the deal questionable.
For instance, despite paying a substantial sum in cash, the buyer is unable to adequately explain where their riches come from.
After that, the attorney must report to MOKAS, which stands for the Unit for Combating Money Laundering in Cyprus. MOKAS will look into the matter.
Prevention and Suppression of Money Laundering and Terrorist Financing Laws of 2007–2021 are pertinent laws.

Visit icpac.org to view government guidance.cy: Suspicious Transactions and Activities Guidance Notes (PDF)

A power of attorney

One method to stay out of the selling process is to use a power of attorney. Giving your lawyer power of attorney to complete the transaction is an option if you are too busy or live overseas.
In Cyprus, you have to show up in person at a certifying officer (with identification documents) to complete a power of attorney. After that, you will have the certifying officer stamp the power of attorney.
A power of attorney must be properly signed, notarized, and apostilled if it is signed overseas.
Notarized refers to a document that has been signed by a notary public and then verified by the closest Cyprus embassy or consulate. Depending on the laws in your nation, some regulations may change. If this is the case, the Cyprus embassy or consulate will inform you and provide instructions.

Do you need assistance selling your home?

The reservation agreement and the sale contract are the legal documents.
The contract of sale is the primary legal document used when selling real estate. You might have to make a "reservation agreement" during talks.

The reservation contract

When selling real estate, the reservation agreement and the sale contract are two different documents. You commit to keeping the offer available to the buyer for a specific amount of time under the terms of the reservation agreement. The commitment is exchanged for a reservation deposit from the buyer.
The buyer, seller, and their attorneys negotiate the deal during the predetermined time frame. They talk about the cost, payment options, transfers, etc.
The property is once again up for sale to a new buyer if the parties cannot agree within the allotted period. Since the deposit is the cost of keeping the offer open, the first buyer forfeits it.
Should the parties agree, the terms will be finalized.

The sale agreement

The contract of sale is the completed paperwork.
Here are some pointers to assist with the intricacies of a sale agreement:
The terms are legally obligatory and should be written clearly. You and the buyer are bound by the terms of the contract when you sign it.
• Agree on the payment structure and manner. Decide how much should be contributed as a down payment.
Discuss and come to an agreement on the technical aspects, the materials to be utilized, and the costs if your company sells off-plan. Discuss and decide on a reasonable building schedule.
If you are a company or business, you can modify a pre-made contract to fit the circumstances or utilize one with your own standard conditions. According to Cyprus's consumer contracts law, your attorney will make sure that the conditions are reasonable and that there won't be any issues with them. It addresses the situation in which a company sells real estate to a buyer who is not a business.
Cyprus property sales taxes that must be paid.

The following is a list of taxes that must be paid when selling real estate in Cyprus.
Tax on the transfer of immovable property
Introduced on February 22, 2021, the Cyprus immovable property transfer levy is a tax that must be paid when transferring real estate. The statute in question is N 12(I) 2021. This law requires the seller to give the Central Agency for Equal Distribution of Burdens (CAEDB) 0.4 percent of the price they were paid for the property. The CAEDB uses the funds it collects to help the refugees in Cyprus.

The N. 313 form

This form must be submitted by the seller to the Land Registry's district office along with their paid receipts.
• The Central Agency for Equal Distribution of Burdens (CAEDB) receives the immovable transfer levy; the Inland Revenue receives the capital gains tax.
• The sewerage board receives the tax.
• The municipality's town rate.
• The local community's communal rate.
•The Immovable Property Tax, which was eliminated in 2017, is still included in the form (Greek, PDF, accessible on the Tax Department website) as of December 2024.
Portal.dls.moi.gov.cy is the source.

Fees for the community

If you sell an apartment or other residential property in Cyprus that has communal costs, you will be responsible for paying such payments. After paying the block's management committee or the accountable property management business, you will receive a statement stating that there are no unpaid fees. The buyer will receive this declaration from you.

Capital Gains Tax: "Capital gains tax is payable when you sell an asset [like a house] that has increased in value since you bought it," states the Home Owners Alliance (hoa.org.uk). In other words, when the value of the property exceeds the "initial acquisition cost."
Cyprus's Capital Gains Tax
In Cyprus, capital gains tax operates as follows:
• After selling the property, a gain (profit) of EUR 17,469 (originally written as 10,000 Cyprus pounds) is exempt from taxes. EUR 26,203 (15,000 Cyprus pounds in the original English) is the amount of agricultural land that is exempt from taxes.
• A gain over this is subject to 20% tax.
• Unless the gain exceeds EUR 87,345 (50,000 Cyprus pounds in the original text), there is no capital gains tax when you sell your home. Once the EUR 87,345 has been deducted, you must pay capital gains tax on the remaining sum. The maximum size of the land is 1.5 hectares.
The Capital Gains Tax Law 1980 (52/1980) and its most recent revision, N. 197(I)/2022, are pertinent laws.
Taxes associated with business sales
You will pay income tax rather than capital gains tax when you sell real estate as a business. In Cyprus, the usual income tax rate for businesses is 12.5%.

The buyer is responsible for paying the transfer costs and VAT. For the first 130 square meters, first-time homebuyers are eligible for a reduced VAT of 5%. Prior to June 2023, it was 200 sq m. The average rate for all other buyers is 19%.
There are no transfer fees if VAT has already been paid. VAT is not applied to resale houses purchased on the secondary Cyprus real estate market.
Transfer at the Land Registry with payment and signature
The buyer pays the price at the time the contract is signed.
After that, the buyer and seller (or their attorneys) proceed to the Land Registry's district office to complete the transfer. They must present identification in person, including ID cards or other forms of identification.
The contract of sale and the accompanying documents will be deposited there by the buyer and seller:
N. 270, which certifies the transfer of immovable property, and N. 313, which attests to the payment of all taxes (see above).
After that, the land registration issues title deeds in the buyer's name and transfers the property.
The title deeds

In Cyprus, the title deed serves as evidence of ownership. In relation to the land, it safeguards the holder. The buyer will receive a new title deed in their name following the transfer.
Without title deeds, property can be sold. The property might still be under construction or mortgaged (keep in mind that the buyer will request evidence of your ability to repay if the property has a mortgage).
The buyer might request an assignment agreement, though, if you sell without title deeds. This gives the buyer ownership of the property. All outstanding taxes and community fees associated with the property must be paid by you. It is necessary to stamp and deposit the assignment agreement at the Land Registry's district office.

The operation of the assignment agreement

The buyer will receive title deeds directly if you sign, stamp, and deposit an assignment agreement. You will be required to transfer the title to the buyer when the title deeds are issued in your name when there is both a contract of sale and an assignment agreement. Therefore, using an assignment agreement is more practical.

Transfer of the title deeds was delayed

The buyer may get a court order of particular performance if you postpone the transfer of the title deeds for any reason. You are required to give the buyer the property under this order.
The buyer must deposit the sale agreement with the Land Registry within six months after signing it in order to accomplish this.
The buyer can make the mortgage payment on their own if the delay is due to the mortgage on the property.
The buyer is required to deposit a declaration with the sale contract in accordance with the modified legislation (N. 132(I)/2023). This statement, which you and the mortgage owner (bank) must sign, states that the mortgage owner will remove the mortgage from the property and verify this with the Land Registry if the buyer pays 95% of the mortgage. The buyer will then receive the property from the Land Registry.
Relevant legislation: N. 132(I)/2023 amends Sale of Land (Specific Performance) Law No. 81 (I)/2011.