Common Mistakes When Buying Property in Cyprus

Published on September 30, 2025 and written by Cyril Jarnias

The Mediterranean island of Cyprus is attracting more and more foreign investors thanks to its pleasant climate, dream beaches, and peaceful living environment. However, buying real estate in this paradise can turn into a real obstacle course for the uninitiated. Between local legal specifics and sometimes opaque market practices, numerous pitfalls await the unprepared buyer. In this article, we will review the most common mistakes to absolutely avoid to ensure your investment in Cyprus is successful.

Not Checking the Property Title: A Major Risk

One of the most serious—and unfortunately frequent—mistakes is failing to conduct a thorough verification of the property title before purchase. In Cyprus, many real estate properties are still encumbered by mortgages or subject to ownership disputes, particularly in the occupied areas of the northern part of the island.

It is absolutely crucial to hire a local specialized lawyer to perform a comprehensive title search. They will not only verify the authenticity of the title but also check for any existing encumbrances, easements, or restrictions that could affect the property’s value or use.

Additionally, it’s important to know that in Cyprus, there are still many cases where the property title hasn’t been transferred from the developer to the initial buyer, which can cause serious problems during resale. Your lawyer must ensure that the seller is indeed the legal owner of the property and has the right to sell it.

Underestimating the Importance of Building Permits: Beware of Illegal Constructions

Another common mistake is failing to verify the existence and validity of building permits. In Cyprus, it’s not unusual to find properties built without authorization or not complying with initially approved plans.

Buying a property without the proper permits can expose you to heavy fines, or even an obligation to demolish. Therefore, it’s essential to request to see all permits and certificates related to the property’s construction, including the final certificate of completion.

In the case of a property under construction or recently completed, ensure that the developer has all necessary authorizations and that the property complies with current regulations. Don’t hesitate to hire a local architect or engineer to inspect the property and verify its compliance.

It’s also important to note that certain areas of Cyprus are subject to specific construction restrictions, especially near the coast or in protected zones. Make sure to check the urban planning rules applicable to the area where the property you’re interested in is located.

Neglecting Tax Implications: Watch Out for Unpleasant Surprises

Many foreign buyers underestimate the tax impact of their real estate acquisition in Cyprus. However, poor tax planning can seriously burden the profitability of your investment.

It’s crucial to fully understand the Cypriot tax system and its implications before committing. The main taxes to consider are:

• VAT: It applies to the purchase of new properties at a rate of 19%, with a reduced rate of 5% for primary residences under certain conditions.
• Transfer fees: They range from 3% to 8% depending on the property’s value.
• Capital gains tax: It amounts to 20% upon resale.
• Annual property tax: It is calculated based on the property’s value.

Additionally, if you plan to rent out your property, rental income will be subject to Cypriot income tax. Therefore, it’s recommended to consult a local tax expert to optimize your situation and avoid pitfalls.

Also, don’t forget to check the tax implications in your home country. Depending on your situation, you could be subject to double taxation if you don’t take the right measures.

Jumping on an Attractive Offer: Beware of Prices That Are Too Low

In a real estate market as attractive as Cyprus’s, it’s tempting to jump on the first offer that seems advantageous. However, a price abnormally low compared to the market should raise your suspicions.

It could be a property with hidden defects, poor-quality construction, or a property located in an unattractive or hard-to-access area. Sometimes, these enticing offers hide complex legal problems that the seller is trying to avoid.

Take the time to thoroughly study the local market and compare prices in the area you’re interested in. Don’t hesitate to hire a licensed and reputable real estate agent in Cyprus to assist in your search and give you a realistic estimate of property values.

Moreover, be wary of developers who pressure you to sign or offer “limited-time offers.” These aggressive sales techniques are often a sign of lack of seriousness or financial difficulties on the part of the developer.

Ignoring Additional Costs: The True Cost of Your Acquisition

A classic mistake is to only consider the purchase price of the property, forgetting all the additional costs that can significantly increase the final bill. In Cyprus, these costs can represent up to 10-15% of the purchase price.

Among the main costs to anticipate are:

• Lawyer fees: generally between 1% and 2% of the purchase price.
• Notary fees: approximately 0.5% of the purchase price.
• Real estate agency fees: between 3% and 5% of the purchase price.
• Property transfer fees: from 3% to 8% depending on the property’s value.
• Connection fees to utilities (water, electricity, etc.): variable depending on location.

It’s crucial to include all these costs in your initial budget to avoid unpleasant surprises. Also, don’t forget to budget for furnishing and equipping your property if you’re buying a new home.

Finally, if you plan to rent out your property, also anticipate property management and maintenance fees, which can be significant, especially for a secondary residence you won’t occupy year-round.

Neglecting Location: A Crucial Choice for Your Investment

The adage “location, location, location” is particularly true in Cyprus. Many buyers, seduced by dream photos or enticing descriptions, neglect to thoroughly study the location of the property they desire.

A poor location choice can not only affect your quality of life but also the future value of your property and its ease of resale. Here are some essential points to consider:

• Accessibility: check proximity to public transportation, main roads, and airports.
• Infrastructure: ensure the presence of shops, schools, hospitals, and other essential services nearby.
• Future development of the area: inquire about planned urban development projects in the sector.
• Safety: some areas of Cyprus are safer than others, especially at night.
• Tourist potential: if you plan to rent out your property, choose a location attractive to vacationers.

Don’t hesitate to spend time on-site before buying. Visit the neighborhood at different times of the day and week to get a precise idea of the atmosphere and local life.

Finally, be cautious of properties located in isolated or hard-to-access areas, even if they offer a stunning view. They may prove difficult to resell and costly to maintain.

Skipping a Local Lawyer: A Risky Economy

In an effort to save a few euros, some buyers decide to forgo the services of a local lawyer. This is a mistake that can prove extremely costly in the long term.

The Cypriot legal system, although based on British law, has many particularities that only a local lawyer fully masters. Here’s why their involvement is crucial:

• Property title verification: the lawyer will ensure the validity of the title and the absence of encumbrances or disputes.
• Contract drafting and review: they will ensure your interests are protected in the sales contract.
• Negotiation with the seller: they can negotiate certain clauses or conditions on your behalf.
• Management of administrative formalities: they will handle all procedures with local authorities.
• Tax advice: they can guide you on the best options to optimize your tax situation.

Moreover, in case of future disputes, having a lawyer who already knows your case will be a considerable advantage. Don’t hesitate to ask for recommendations from other expatriates or your embassy to find a reliable and experienced lawyer.

Underestimating Maintenance Costs: The Reality of Daily Life

Many buyers, especially those investing in a secondary residence, tend to underestimate the maintenance costs of their property in Cyprus. However, these expenses can quickly accumulate and weigh heavily on your budget.

The Mediterranean climate, although very pleasant, can be harsh on buildings. Exposure to sun, heat, and sometimes humidity requires regular maintenance. Here are some points to consider:

• Air conditioning: essential in summer, it requires annual maintenance and can consume a lot of energy.
• Pool: if your property is equipped with one, budget significantly for its maintenance and treatment.
• Garden: in a dry climate, garden maintenance can be costly in water and labor.
• Repairs: construction materials used in Cyprus may require more frequent interventions than in Northern Europe.
• Security: if you don’t occupy your property year-round, you may need to invest in a security system or pay for surveillance.

If you plan to rent out your property, remember that tenants, especially tourists, can be demanding in terms of comfort and amenities. You’ll therefore need to budget to maintain your property at a high-quality level.

Ignoring Cultural Specificities: The Importance of Integration

Finally, a mistake often made by foreign buyers is neglecting the importance of Cypriot cultural specificities. Although Cyprus is a modern country open to the world, it retains traditions and ways of doing things that can surprise newcomers.

A good understanding of the local culture is essential for integration and avoiding misunderstandings, especially if you plan to live in Cyprus long-term. Here are some points to keep in mind:

• Language: although English is widely spoken, making the effort to learn a few words of Greek will always be appreciated.
• Pace of life: Cypriots have a different relationship with time than Northern Europeans. Patience and flexibility are key.
• Social relationships: Cypriots place great importance on personal relationships, including in business.
• Holidays and traditions: familiarize yourself with the local holiday calendar, which can affect opening hours and daily life.
• Cuisine: gastronomy holds an important place in Cypriot culture. Participate in local meals and events to integrate.

Taking the time to understand and respect these cultural specificities will not only help you integrate better but also avoid mistakes that could complicate your administrative procedures or relationships with your neighbors.

In conclusion, buying real estate in Cyprus can be a rewarding experience and an excellent investment, provided you avoid these common pitfalls. Meticulous preparation, the help of local professionals, and a good understanding of the local context are the keys to a successful acquisition on this charming Mediterranean island.