A Guide to Buying Property in Cyprus as a Foreign Investor

(2025 Edition)

Cyprus has long been an attractive destination for international property buyers, thanks to its strategic location, enviable Mediterranean lifestyle, and investor-friendly environment. Whether you’re considering a holiday home, a buy-to-let investment, or a permanent relocation, Cyprus offers a transparent legal framework and welcoming property market for foreign investors.

However, as with any international property acquisition, navigating the process requires a sound understanding of the legal, financial, and practical considerations involved.

This step-by-step guide will walk you through everything you need to know to buy property in Cyprus as a foreign investor in 2025—from title deeds and due diligence to taxes and working with local professionals.

Who Can Buy Property in Cyprus?
Types of Property Ownership
The Step-by-Step Purchase Process
Due Diligence and Legal Safeguards
Title Deeds: Why They Matter
Taxes and Ongoing Costs
Financing and Mortgages
Working with Estate Agents and Lawyers
Common Pitfalls and How to Avoid Them
Final Thoughts

1. Who Can Buy Property in Cyprus?

Cyprus is among the most open real estate markets in Europe when it comes to foreign ownership.

EU Citizens

EU citizens can purchase any number of properties in Cyprus without restriction, including land, commercial property, and residential units.

Non-EU Citizens

Non-EU nationals are permitted to buy property in Cyprus, subject to approval by the Council of Ministers (a formality in most cases). The application is submitted via the District Office and covers:

One apartment or house
A plot of land (up to 4,014 sqm)
One commercial property (under certain conditions)

If the property is registered under a Cyprus company (which can be foreign-owned), the limitations do not apply.

2. Types of Property Ownership

In Cyprus, ownership is freehold, meaning that you own the property and the land it sits on indefinitely.

Freehold Title

The most secure and desirable form of ownership. You hold full rights and can sell, lease, or pass on the property without restrictions.

Leasehold Property

Less common in Cyprus, leasehold arrangements usually apply to properties built on Turkish-Cypriot land in the north or some church-owned land. Lease durations typically run for 99 years.

For peace of mind, always aim to buy freehold property with title deeds, especially as a foreign investor.

3. The Step-by-Step Property Purchase Process

Buying property in Cyprus as a foreigner is straightforward if you follow the correct legal steps and engage qualified professionals.

Step 1: Find a Reputable Estate Agent

Engage a licensed and registered estate agent. Ensure they are listed with the Cyprus Real Estate Agents Council. A good agent will guide you through viewings, negotiations, and paperwork.

Step 2: Hire an Independent Lawyer

Always hire your own independent property lawyer, not one recommended by the seller or agent. They will conduct due diligence, draft contracts, and safeguard your interests.

Step 3: Reserve the Property

Pay a reservation deposit (typically €2,000–€10,000). This shows intent to buy and temporarily removes the property from the market while contracts are prepared.

Step 4: Due Diligence and Land Registry Checks

Your lawyer will:

Verify ownership
Check for encumbrances or mortgages
Confirm building permits
Ensure the property is legal and free from claims

Step 5: Sign the Sale Agreement

Once due diligence is complete, a Sale and Purchase Agreement (SPA) is signed. This is a binding contract outlining:

Sale price
Payment schedule
Possession date
Penalties for non-compliance

This agreement is then lodged with the District Land Registry to protect the buyer’s rights until the transfer of title.

Step 6: Apply for Council of Ministers’ Approval (Non-EU Only)

Non-EU buyers must apply for approval. This can take several weeks and can be done in parallel with other steps.

Step 7: Transfer of Title Deed and Final Payment

Upon completion, your lawyer will facilitate:

Payment of stamp duty
Payment of transfer fees
Title deed transfer to your name
Issuance of registration certificate

4. Due Diligence and Legal Safeguards

Due diligence is not optional—it’s critical. Your lawyer must:

Confirm the seller is the legal owner
Check if the property has a separate title deed
Investigate any mortgages, court cases, or inheritance claims
Ensure planning and building permissions are in order

Also, be cautious with:

Off-plan properties (verify developer credentials)
Property on Turkish-Cypriot land (politically sensitive)
Unregistered sales or handwritten agreements

5. Title Deeds: Why They Matter

One of the most important issues in Cyprus property is title deeds.

What is a Title Deed?

A title deed is the legal document proving ownership of the property and land. Without it, your ownership is not officially registered.

Common Scenarios:

Full title deed available: Best case—transfer can happen immediately.
Separate title deed pending: Common with new builds. The land has a deed, but the building is not yet registered as a separate entity.
No title deed and encumbrances exist: Risky. Avoid unless advised by a top-tier legal expert.

Cypriot authorities have improved the issuance of title deeds in recent years, but verify before committing.

6. Taxes and Ongoing Costs

Foreign buyers should familiarise themselves with the following taxes and fees:

One-Time Costs

Fee Type	Amount (Approx.)
Reservation Deposit	€2,000–€10,000
Stamp Duty	0.15%–0.20% of property value
VAT (on new property)	5% (primary residence, up to 200 sqm) or 19% (otherwise)
Land Registry Transfer Fees	3%–8% (varies by value and if VAT was paid)
Legal Fees	~1% of the purchase price (plus VAT)

Annual/Recurring Costs

Municipal Property Tax: Based on the 1980 valuation; generally low (€85–€300/year).
Refuse Collection Fee: ~€100–€200/year.
Immovable Property Tax (IPT): Abolished since 2017.
Common Expenses: For shared buildings or complexes.

7. Financing and Mortgages

Foreign nationals can obtain mortgages in Cyprus, though conditions may vary depending on nationality, income, and lender policy.

General Requirements:

Deposit of 30%–40%
Proof of income (bank statements, tax returns)
Clean credit history
Life insurance and property insurance

Lenders in Cyprus:

Bank of Cyprus
Hellenic Bank
Alpha Bank
AstroBank

Foreign banks operating in Cyprus may also offer international financing packages.

Interest Rates (2025):

Typically 4.0%–5.5% variable
Some fixed-rate options available

Working with a mortgage broker familiar with foreign applicants is advisable.

8. Working with Estate Agents and Lawyers

Estate Agents:

Make sure they are registered and licensed with the Council of Registered Estate Agents Cyprus (CREAC). Avoid informal or unlicensed agents. Commission is usually paid by the seller, but terms may vary.

Lawyers:

Choose a specialist in real estate law and ask:

Are you truly independent?
Can you conduct full Land Registry checks?
Will you submit my application to the Council of Ministers?
Can you assist with VAT or company structuring?

Always sign a written engagement letter outlining scope and fees.

9. Common Pitfalls and How to Avoid Them

Many buyers have had smooth, successful experiences—but there are still traps to watch out for:

1. Buying Without Title Deeds

Risky and may cause delays in reselling. Ensure your lawyer checks for or negotiates title deed issuance guarantees.

2. Relying on Verbal Agreements

Only sign written contracts reviewed by your lawyer. Never rely on side promises.

3. Skipping Due Diligence

Even if the seller is a friend or recommended by someone you trust, always carry out full legal checks.

4. Failing to Budget for Fees

Remember: purchase price ≠ total cost. Add 10%–15% buffer for taxes, legal fees, and incidentals.

5. Underestimating the Importance of a Good Lawyer

A strong legal advisor is your best defence against scams or administrative hurdles.

10. Final Thoughts

Cyprus continues to be one of the most accessible and investor-friendly destinations for foreign property buyers in Europe. With a stable legal system, EU protection, and a relatively affordable market, it’s no wonder so many are choosing to invest here in 2025.

Whether you’re buying a holiday villa in Paphos, an apartment in Limassol, or a long-term rental in Nicosia, following the right legal and financial steps is key to a safe and profitable transaction.

At investments.cy, we connect investors with vetted properties, trusted agents, and independent legal professionals to ensure every step of your property journey in Cyprus is secure, transparent, and rewarding.