Real Estate & Property Law Insights from Antoniou Law Firm  

In 2025, Cyprus remains firmly on the radar of international property investors. Whether driven by lifestyle, strategic location, or favorable legal and tax frameworks, the island’s real estate market continues to appeal to foreign buyers from Europe, the Middle East, and beyond.

Recent months have seen a noticeable uptick in overseas enquiries and cross-border transactions, reflecting a broader trend of renewed global interest in Mediterranean property markets. If you are considering investing in Cypriot real estate, understanding the legal landscape is essential for a safe and successful transaction.

1. Title Deeds: A Foundational Check

One of the most critical legal checks in any property transaction is the status of the title deed. Buyers must ensure the property has a separate, transferable title, and that it is free from encumbrances or hidden developer mortgages.

Despite improvements in the title deed issuance process, complications can still arise, especially for properties in multi-unit developments or those sold off-plan. Proper due diligence—including a title search, Land Registry verification, Planning Permit, Building Permit and certificate of Final Approval —remains essential.

At Antoniou Law Firm, we ensure full transparency on the status of your property before any commitment is made.

2. Zoning and Planning Updates for 2025

Cyprus has introduced a number of zoning law amendments this year, particularly aimed at sustainable development and environmental protection. These include changes to building density, maximum height restrictions, and minimum plot sizes—especially in coastal and semi-rural areas.

Such changes can directly affect property values, development potential, and resale prospects. Investors acquiring land or entering development agreements must now take a more cautious, legally informed approach.

We assist clients in reviewing local zoning maps, planning regulations, and permit requirements before purchase.

3. Taxation and Transaction Costs

Cyprus remains a tax-efficient jurisdiction for real estate investment. Key benefits include:

• No inheritance tax
• Low transfer fees (50% discounted), or not at all particularly when VAT is applicable
• VAT Reduction Permit (5%) on first-sale homes (under specific conditions)
• Broad network of double tax treaties, reducing cross-border tax exposure

However, municipal taxes and immovable property charges have been updated in 2025 following a property revaluation exercise. Investors should plan for both upfront costs and recurring obligations such as local council levies, sewerage taxes, and communal maintenance fees (if any).

4. Residency Through Property Investment

Cyprus still offers a viable residency-by-investment pathway, available to non-EU nationals purchasing new residential property valued at €300,000 or more (plus VAT). This permanent residency route provides long-term permanent residence (“PR”) rights for the investor and their family, with relatively fast processing timelines. PR Permit holders can maintain their PR status by visiting the island once every 2 years.

Legal advisors play a key role in ensuring compliance with immigration, financial origin, and property-related criteria for the residency scheme.

5. Legal Representation Is Essential

Investing in Cyprus property involves more than just a sale contract. Buyers need legal support to:

• Conduct title and planning due diligence
• Draft or review contracts of sale
• Set up escrow or trust arrangements for safe payment handling
• Navigate tax registration and municipal filings
• Secure residency or company structuring, if applicable
• Register Cyprus Company if needed

At Antoniou Law Firm, we offer comprehensive, independent legal services for foreign investors—from first enquiry through to registration and beyond.

 

Final Thoughts

Whether you are purchasing a holiday home, seeking a rental investment, or developing a new project in Cyprus, understanding the legal and regulatory framework is key. With the market evolving in 2025, working with a specialist real estate lawyer ensures peace of mind and long-term protection of your rights and interests.

Disclaimer

The information provided above offers a general overview of key legal considerations for foreign buyers investing in Cyprus real estate in 2025. It does not constitute legal advice.

For personalised legal support with your property investment in Cyprus, please contact us at info@antonioulegal.com