Buying property in Cyprus can be an exciting opportunity, whether for investment, relocation, or securing residency. However, many buyers face unexpected challenges that can turn their dream purchase into a financial and legal nightmare. In this blog post we will discuss 7 major problems you might encounter when buying property in Cyprus. We will also show you how to avoid them.
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1. Not Hiring an Independent Lawyer Many buyers feel that hiring a lawyer is an unnecessary expense. Especially when developers and estate agents offer their own "recommended" inhouse legal representatives. However, these lawyers often have a vested interest in closing the sale, not protecting you, the buyer.
Without your own independent lawyer, you might end up signing contracts that include hidden clauses, fees, or unfair terms. A common problem is for example signing away your deposit, when it should count towards your down payment.
How to Avoid This Always hire a lawyer who is completely independent from the seller, developer, or estate agent. Hire a lawyer who specialises in property law in Cyprus and has experience with foreign transactions. Ensure your lawyer checks the property carefully. This includes looking at the title deed, verifying any debts, and reviewing contracts before you sign anything. 2. Buying Property Without a Title Deed Many properties, especially new builds, often lack title deeds. This happens because of delays in building approvals, planning issues, or debts from developers. If the property doesn’t have a separate title deed, you don’t have legal ownership. This can make it hard to sell later or even put it at risk if the developer has financial problems.
How to Avoid This Only consider properties that already have a separate and available title deed. If a title deed is not yet available, your lawyer must conduct a full legal check to understand the risks. If buying off-plan, ensure your contract includes a clause that legally guarantees your right to obtain the title deed once issued. 3. Poor Construction Quality and Structural Issues Unlike many other countries, Cyprus does not have strict regulations on who can use the title of "developer". Therefore, some developers cut corners, using substandard materials, poorly skilled labour, or rushing projects to maximise profits. Damp, weak foundations, and poor plumbing or electrical work are common issues that can lead to costly repairs.
How to Avoid This Only buy from reputable developers with a history of delivering high-quality projects. Hire an independent structural surveyor to inspect the property before purchase. Ask for reviews or referrals from previous buyers to assess the developer’s reputation. 4. Hidden Developer or Seller Debts Another big problem when buying property in Cyprus is discovering hidden debts after the purchase. Some properties come with undisclosed financial burdens, such as developer mortgages, unpaid utility bills, or tax liabilities. If you purchase a property with outstanding debts, these obligations could legally transfer to you as the new owner.
How to Avoid This Have your lawyer perform a Land Registry search to check for any existing mortgages, debts, or legal encumbrances. Never assume that just because a property is new, it is free of debt. Request written confirmation from the seller that the property is debt-free before proceeding with the purchase. 5. Misunderstanding Property Taxes and Ongoing Costs Many buyers focus only on the purchase price. They often forget about extra costs like stamp duty, VAT, transfer fees, maintenance fees, and property taxes. These added expenses can significantly increase the total cost of buying and owning property.
How to Avoid This Obtain a full cost breakdown from your lawyer, including purchase taxes, transfer fees, and ongoing costs. If buying in a gated community, ask about annual maintenance fees and shared expenses. Factor in utility costs, insurance, and property management fees, especially if purchasing for rental income. Make sure you understand which costs apply and when, so you can avoid unexpected expenses. To get a full breakdown of taxes, fees, and what to budget for, check out our complete guide to buying property in Cyprus
6. Buying in the Wrong Location for Your Needs Cyprus offers diverse regions, from bustling city centres to quiet coastal villages. However, many foreign buyers regret their purchases because they didn’t research the area thoroughly. A home that looks perfect in summer might not work well in winter. This can happen because of infrastructure problems, seasonal businesses shutting down, or too many tourists.
How to Avoid This Visit the area at different times of the year to experience seasonal changes. Research future development plans that could impact property values or quality of life. If buying as an investment, ensure consistent rental demand and reasonable yields. If you're buying with investment in mind, make sure you understand both the rental tax rules and how to choose the right area. Our guide to rental income tax in Cyprus step-by-step guide to buying property in Cyprus
7. Overlooking Ownership Disputes in Resale Properties While ownership disputes are less common in new developments, they can still arise. This is especially true when developers act as brokers for resale properties they previously built and sold. These problems often happen when a property is part of a divorce, inheritance, or shared between multiple owners.. If not properly checked, you could end up caught in a legal battle over ownership.
How to Avoid This Ask your lawyer to check for any legal claims, disputes, or shared ownership attached to the property. Be especially cautious when buying resale properties through developers acting as brokers. Always verify who holds the title deed and that the seller has full legal authority to transfer ownership. Final Thoughts Buying real-estate in Cyprus can be a great opportunity. But if you're not well informed, it also comes with serious risks. You can avoid most of the problems in this overview with the right legal support, a trusted developer and a clear plan. After all, the cost of working with an independent lawyer is small compared to the financial and legal risks of getting it wrong.
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