Cyprus

Registering Property in

Cyprus

Listed below is a detailed summary of the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.

  • Standard Property Transfer

  • Property Value: EUR 992,642
  • City: Nicosia

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No. Procedure Time to Complete Associated Costs
1 Search the property titles and check for encumbrances

While this procedure is not required by law, it is advisable to perform due diligence before entering into this type of transaction. This is due to the fact that several properties in Nicosia were built without construction permits. In order to request this information the buyer requires an authorization of the Seller. In practice the seller goes with the buyer to the Department of Lands and Surveys and requests this information for the buyer.

Agency: Department of Lands and Surveys 		5 days EUR 2
2 Lawyer drafts the sale agreement

In order to prepare the sale agreement, the lawyer requires the following information: name of the parties, amount of the transaction, object, information of bank loan (if any), resolution of the assembly of shareholders approving the transaction (in case of companies). It is important to point out that the use of lawyers it is not required by law. However, taking into consideration the amount of the transaction, legal services are advisable.

The documents below are required by the lawyer when preparing the sale contracts. There is no need to submit these documents to the Land Registry:
(1) Notarized Power of Attorney of the Company representatives
(2) Notarized Minutes of the board of Directors
(3)Memorandum & Articles of Association of the Board
(4) Certificate from the Registrar of Companies as to the Directors Secretary Shareholders (for Private Companies) and the registered address
(5) The buying Corporation will check as well that there is a legal permit for the warehousedone

Agency: Private 		2 days EUR 500-1000
3 Pay transfer Taxes

In order to transfer a title, a certification that all taxes have been paid is needed from the Inland Revenue Department (IRD). The IRD provides receipts for the proof of payment of:
(1) Immovable Property Tax;
(2) Stamp Duty (the Director of which is also the Stamp duty Commissioner): Stamp duty is paid based on the purchase price; and
(3)Capital Gains Tax: The sale contract is filed for assessment of capital gains at the IRD. The market value of the property is determined by the Director of the Department of Lands & Surveys. CGT is imposed at 20% on gains from the disposal of immovable property. The taxable gain is calculated by deducting from the sale price the following:
(a) Acquisition cost, or market value at January 1st, 1980 if the asset was acquired before that date;
(b) Expenses incurred to improve the property; and
(c) Sale expenses, interest on loans and immovable property tax.

Agency: Inland Revenue Department 		5 days Payment of Stamp duty is as follows: 0 - 171 000 EURO= 0.001% above 171 000 EURO = 0.002% with a maximum of 17 100 EURO Payment of Immovable Property Tax is as follows: First EURO 170, 860. 14= 0% Next EURO 256, 290 ( from 170,860.14 to 427, 150.36) = 2
4 File the contract at the Department of Lands and Surveys

Although this procedure is not required by law it is always performed in practice. Parties to a sale agreement file the contract (price and obligations) at the land registry. The goal of this procedure is to protect parties from each other if one of them changes their mind and violates the sale agreement. Therefore, the protected party can request the “specific performance” of the contract (i.e. specific performance of the contract regarding price if the Seller abruptly modifies the price of the property).
1 day EUR 2
5 Obtain Sewerage Board Tax clearance

The purchaser should apply and obtain a Sewerage Board Tax clearance from the Sewerage Board office.

Agency: Sewerage Board 		1 day No Cost
6 Declaration of transfer of immoveable property at the Land Registry and issuance of the new title deed

The sale contract must be registered at the Land District office within 2 months after the signature of the contract. The change of ownership takes place when the sale contract is registered at the Land District office. The original and the copy of the contract of sale must be duly stamped.
http://www.moi.gov.cy/moi/citizenscharter/CitizensCharter.nsf/All/EC412A60FFCEF883C2256E55001FB2CB?OpenDocument

The buying Corporation is responsible of paying for the Transfer Tax based on the value of the property as determined by the Director of the Department of Lands & Surveys. The transfer tax (as % of property value) is as follows:
0 - 85,500 EUR = 3%
85,500 - 171,100 EUR = 5%
above 171,100 EUR = 8%

Documents to be provided to the Land District Office are as follows:
(1) Completed Form N270 (Declaration of Transfer of Immovable Property).
(2) The certificate of registration (title) of the immovable property, which is to be transferred
(3) Completed Form N.313.
(4) Proof of payment of all fees, charges and taxes payable for the property under transfer.
i. Immovable Property Tax and Capital gains tax (Receipts of payment for these taxes are obtained from the Internal Revenue Department)
ii. Sewerage Board Tax (receipt obtained from the Sewerage Board)
iii. Town rate (receipt obtained from the municipality in whose boundaries the property is situated)
iv. Communal rate (receipt obtained from the community in whose boundaries the property is situated)

The declaration of registration is done after the evaluator at the Registry assesses the value of the property, based on the amount stated In the sale agreement. If the assessed price is higher than the paid amount stated in the purchase agreement, an inspection will be conducted by staff from the land registry. This valuation is required in order to prevent fraud (i.e. state in the sale agreement a lower amount in order to pay less transfer fees).

Agency: Department of Lands and Surveys 		28 days EUR 2.05 to deposit the Sale contract at the Land District Office (Within 2 months from the date of the contract) Payment of Transfer fees as follows: 0 - 85, 500 EUR = 3% 85, 500 - 171,100 EUR = 5% above 171 100 EUR = 8%
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