Selling Process in Cyprus – Legal Steps, Taxes, and Best Practices (2025)

A complete step-by-step guide to selling property in Cyprus, including legal requirements, taxes, documentation, and practical tips for local and foreign sellers.

Selling Process in Cyprus – Step-by-Step Guide (2025)

Selling a property in Cyprus requires careful preparation to comply with legal, tax, and contractual obligations. This step-by-step guide outlines each stage of the process, helping sellers maximise their return while avoiding unnecessary risks.

Step 1 – Preparing the Property for Sale

Sellers must prepare their property by gathering all necessary documents, including the title deed, planning permits, and energy performance certificate. Addressing defects and maintenance issues can enhance property value. Decisions about whether to sell furnished or unfurnished should also be made at this stage.

Step 2 – Choosing an Agent

It is essential to work with a licensed real estate agent registered with the Council of Real Estate Agents. Unlicensed agents present risks of fraud and unenforceable contracts. Sellers can choose between exclusive and non-exclusive agency agreements depending on their strategy.

Step 3 – Setting the Price

Accurate pricing is critical for a successful sale. Licensed property valuers can provide objective market valuations. Factors influencing price include location, permits, condition, and comparable sales in the area. Overpricing can delay sales, while underpricing can reduce returns.

Step 4 – Marketing the Property

Effective marketing strategies include listing the property on online portals, leveraging real estate networks, and targeting international buyers. Professional photography, home staging, and viewings (open house or private) can improve buyer interest.

Step 5 – Reservation Agreement

Once a buyer is found, a reservation agreement may be signed with a deposit to secure the property. The agreement should clearly state conditions for refund or forfeiture of the deposit. Deposits should ideally be handled via escrow to reduce risk.

Step 6 – Drafting and Signing the Sale Agreement

The sale agreement formalises the transaction and sets out the obligations of both seller and buyer. It must be signed, stamped, and registered at the District Land Registry. Accurate property descriptions and full disclosure of encumbrances are critical to prevent disputes.

Step 7 – Tax Obligations for Sellers

Sellers are responsible for capital gains tax (CGT) at 20% on profits from the sale of immovable property. Exemptions exist for primary residences (subject to conditions), inheritance, and family transfers. Final clearance of local property taxes is required before transfer.

Step 8 – Transfer of Title Deeds

At the final stage, the District Land Registry transfers the title deeds to the buyer. The seller must clear any outstanding mortgages or encumbrances before transfer. Upon payment of transfer fees by the buyer, the seller receives the final balance of the sale price.

Case Study

A seller in Larnaca avoided a costly dispute with the Tax Department by keeping receipts for renovation expenses. These were deducted from their capital gains tax liability, significantly reducing the amount payable.

Practical Tip

Always obtain a tax clearance certificate before transferring property. Without this certificate, the Land Registry will block the sale.

External Links

• Cyprus Land Registry – https://portal.dls.moi.gov.cy/

• Cyprus Tax Department – https://www.mof.gov.cy/

• Council of Real Estate Agents – https://www.creacyprus.org.cy/