Acquisition of Immovable Property in Cyprus

At Michael Panayides Law Firm, we specialize in real estate transactions, providing tailored legal advice to ensure a smooth and secure property acquisition or sale in Cyprus. Whether you are a local or international buyer or seller, our team is dedicated to protecting your interests at every step of the process.

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Purchasing Immovable Property in Cyprus

Step 1: Initial Due Diligence and Legal Representation

Before entering into a Sale and Purchase Agreement, it is crucial to seek legal representation to navigate the complexities of real estate transactions. At Michael Panayides Law Firm, we conduct comprehensive due diligence to safeguard our clients' interests, assessing each case based on its unique circumstances.

Our due diligence process includes, but is not limited to:

• Know Your Client (KYC) Compliance – Identifying both the Purchaser and the Seller to ensure compliance with legal requirements.

• Title Deed Verification – Confirming whether the Seller holds separate title deeds for the property.

• VAT Status – Determining if the property is subject to VAT.

• Encumbrances and Restrictions – Identifying any mortgages, charges, or legal burdens on the property. If a mortgage or encumbrance exists, appropriate legal action will be taken to ensure that the property is free of burdens or that necessary waivers are obtained.

• Construction Status – Verifying whether planning and building permits have been issued for properties under construction.

 Step 2: Contract of Sale or Assignment Agreement

Once due diligence is completed, we proceed with:

• Drafting and Reviewing the Agreement – Ensuring that all terms protect the Purchaser’s rights.

• Negotiating Favorable Terms – Addressing potential risks and incorporating contractual protections for the Purchaser.

Depending on the title deed status, parties may sign either a Contract of Sale or an Assignment Agreement. If the property is jointly owned, then we ensure whether a Distribution Agreement is in place.

Step 3: Stamping of the Agreement

The Purchaser must submit the agreement for stamping at the Tax Office within 30 days of signing.

Step 4: Lodging the Agreement to the Land Registry

A crucial step in securing the Purchaser’s rights is lodging the agreement with the District Land Registry Office under the Specific Performance Law.

• The Agreement must be deposited within six (6) months of signing.

• During this period, the Seller is expected to obtain the necessary clearances from authorities, settle outstanding liabilities, and secure a stamped E313 Form from the Tax Department.

Step 5: Submission of the documentation to the Land Registry

• Once all documentation is completed, a submission is made to the Land Registry, followed by an appointment for examination and processing.

Step 6: Transfer of Title Deed

• Upon examination, the Land Registry will schedule an appointment and the final stage involves the transfer of ownership and issuance of the title deed.

• If the property is subject to VAT, or reduced VAT, no transfer fees will be applied.

• For non-EU nationals, prior approval from the Council of Ministers is required before completing the transfer.

  
  

At Michael Panayides Law Firm, we offer comprehensive legal representation throughout this process. Through a Power of Attorney (specific or general), we can act on behalf of our clients, ensuring a smooth transaction without requiring their physical presence in Cyprus.

Our services also include:

• Liaising with authorities, including the Tax Department, banking institutions and Land Registry.

• Providing continuous updates via email, keeping clients informed at every stage.

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 For professional legal assistance in purchasing or selling property in Cyprus, contact Michael Panayides Law Firm.

• Expertise in Real Estate Law – Decades of experience in handling complex property transactions.

• Tailored Legal Solutions – Each case is assessed individually to provide personalized legal support.

• International Client Assistance – Specialized services for non-residents looking to invest in Cyprus.

• Transparent & Efficient Process – Full legal guidance with clear, step-by-step communication.

• All client information is handled with strict confidentiality and in compliance with GDPR regulations.

Disclaimer: This article is for informational purposes only and does not constitute legal advice.