Before Buying — Immovable Property Due Diligence
There are several matters to check during the property buying process, and steps to take, that help buyers avoid common pitfalls. Prior to acquisition, a real estate due diligence report allows a buyer to reach a well-informed decision, weighing the pros and cons of the local market and of the property itself.
A due diligence report may include (without limitation) the following:
- A Land Registry search on the property title, confirming whether it is free from encumbrances and unpaid mortgages
- Pending utility bills, including outstanding municipality charges, water board fees, sewer fees, and electricity fees
- Information on previous and current owners
- Inspection of building and planning permits
- Whether any tenancy agreements are in place
- Whether the property may attract a VAT charge on sale
Submitting the Sale-Purchase Agreement to the Land Registry
Once the buyer and seller reach agreement, the sale-purchase agreement (SPA) is concluded. Importantly, in order to gain full legal protection and to be able to raise an issue before a court in Cyprus, the buyer must submit the SPA to the Land Registry within six months from the date of signature.
Costs Associated with a Purchase
Buyers should budget for a number of costs and taxes associated with a Cyprus property transaction:
- Sale agreement deposit fees — a fixed EUR 50 is payable to the District Land Registry Office when depositing the sale agreement
- Capital gains tax — 20% on the value of the sale; where the property is bought from a banking institution or a third party with a non-performing loan, the capital gains position may be adjusted significantly once a ruling is secured from the Tax Department
- Stamp duty — repealed for documents executed from 1 January 2026; documents executed before that date may remain subject to the previous stamp duty rules
- Transfer fees — between 3% and 8% depending on value: 3% up to EUR 85,000, 5% from EUR 85,001 to EUR 170,000, and 8% over EUR 170,001
- VAT — the current rate is 19%, generally applying to newly developed residential properties, commercial properties, and plots of land with no lodgings (exceptions may apply); a specific application must be submitted to the VAT Authorities
How ASC Can Help
ASC provides end-to-end support for property transactions in Cyprus, including the preparation, review, and execution of sale-purchase agreements, real estate due diligence reporting, Land Registry support and appearances, capital gains and tax advisory, and advice on any legacy stamp duty obligations affecting pre-2026 documents. Contact us before you commit to a purchase so that your investment is properly protected.