Real Estate in Cyprus

Types of real estate

In Cyprus, one can either own or rent real estate, regardless of whether it is for business or private purposes.

Ownership restrictions

EU nationals and Cypriot companies controlled by EU nationals can buy any type of property without restrictions.

Non-EU nationals and Cypriot companies controlled by non-EU nationals are only entitled to register real estate in Cyprus in their name if they obtain permission from the Council of Ministers (which has assigned this power to the District Officers of the district where the property is located). This permission is usually granted unless the reputation of the applicant is questionable and it is considered to be against the public interest to grant such permission to the applicant.

Registration in the Land Registry Department

In Cyprus, immovable property is purchased pursuant to a purchase agreement, followed by a deed of transfer, which is entered at the Land Registry Department. This land register shows the identity of the owner, all registered mortgages and encumbrances in relation to the property etc. In most cases, all other burdens and easements such as right of way etc. will also appear on the register.

Property title deeds might not be available for all immovable property and in such case, the purchase contract is lodged with the Land Registry Department as an encumbrance upon the property until the title deeds for that property are issued. Once the title deeds are issued, the transfer of the property takes place provided relevant transfer fees are paid.

The land register system also serves as an easy and dependable way of providing security to lenders, as the ranking of priority of lenders will appear clearly on the property’s list of mortgages and encumbrances. The registration of the mortgage will protect the mortgagee’s rights against the mortgagor’s other creditors.

Leases

Almost all terms and conditions of leases are subject to the parties’ negotiations, including terms and conditions regarding rent, adjustment of rent, maintenance obligations, right of assignment, subletting, and the like.

It should, however, be noted that in the event of early termination by the lessee, the lessor will have the obligation to mitigate his/her loss as a matter of contract law and mitigation will be an important factor in measuring damages.

It should also be noted that with certain old properties it might prove extremely difficult to evict a tenant due to complexities into relevant legislation and to provisions giving the right to a tenant not to be evicted. This is a complicated area of law and things tend to be looked at on a case by case basis.