Israelis have been buying apartments in Cyprus for years: the flight is short, prices are lower than in central Israel, and Cyprus is an EU member state. But a Cypriot deal is not an Israeli deal in another currency. The law, the registration system and the taxes are different, and most problems surface only after the money has been transferred.
Step 1: a purchase permit for non-EU buyers
An Israeli without citizenship of an EU country is treated as an “alien” under Cyprus’s Acquisition of Immovable Property (Aliens) Law, Cap. 109. He needs a purchase permit, usually granted by the District Officer. In practice the permit covers one residential property, and usually up to two per family. A buyer with an EU passport, for example Portuguese or German, does not need a permit. The rules for non-EU buyers are under public debate in Cyprus, so they are checked again before every deal.
Step 2: checks before signing
- The registered owner of the land, and whether it is the seller or the developer.
- A search certificate from the Land Registry, showing mortgages, charges, prohibitions and easements. By law the seller must provide one issued no more than five working days before signing.
- Planning and building permits, and whether the building matches them. Deviations delay the title deed.
- The developer: track record, previous projects, and whether a bank holds a mortgage on the land.
Step 3: the contract and its deposit
The sale contract is deposited at the District Land Registry within six months of signing. The deposit registers the buyer’s right over the property and allows him to sue for specific performance if the seller does not transfer ownership. For a new apartment without its own title deed, the deposit is the most important protection. On title deeds and developer mortgages see Cyprus title deeds, developer mortgages and depositing the contract.
Step 4: costs
- VAT of 19% on a new property. The reduced 5% rate applies only to a main residence and under conditions, not to an investment apartment.
- Transfer fees at the Land Registry, at graduated rates with a 50% reduction. Where the sale is subject to VAT, there are usually no transfer fees.
- Stamp duty was abolished from the beginning of 2026.
- Fees of the local lawyer and, where relevant, of an agent.
Step 5: secure payment
If the land is mortgaged, the contract should require payments to go into the loan account at the bank, and the bank should sign an undertaking to release the apartment once 95% of the price has been paid. Do not transfer money to a private account of an agent or of the developer without such a mechanism.
What about taxes?
Rent and sale profits in Cyprus are taxed in Cyprus and must also be reported and taxed in Israel. See Cyprus property taxes and Israeli tax on property abroad. Before buying in the north of the island, read Property in Northern Cyprus: the legal risks.
Where do you go from here?
At Paz Israel & Co. Law Office we accompany real estate investors in Israel, Israelis buying property in Cyprus and foreign investors buying in Israel: checking the property and the seller, negotiating the contract, accompanying you through registration and coordinating with tax advisers. In Cypriot transactions we work in coordination with a local Cypriot advocate. For more information see our real estate investor services page, or contact us to schedule a meeting in Tel Aviv, Jerusalem or Modi’in.
This article provides general information, is correct as of the time of writing, and does not constitute legal or tax advice. Cypriot law is checked in every transaction with a local advocate.